Tuesday, June 19, 2012

Social Security Retirement Benefits for Veterans

By Kenneth V. Oster

One quarter of Social Security retirement benefit recipients are veterans. According to statistics provided by the Social Security Administration, "veterans and their families make up almost 40 percent of the adult Social Security beneficiary population." Although as of 2010 living veterans from World War II through the Korean War are declining, veterans of the Vietnam conflict and subsequent wars will continue to be a significant portion of the Social Security retirement population.

With few exceptions, veterans receiving military retirement payments are also able to receive full Social Security retirement benefits. Social Security benefits are based on the money you made working in your civilian career, and are not reduced by benefits earned for military retirement. Military members who did not remain in the service until retirement have Social Security earnings that were accredited to their account based on wages earned while working for the government. Social Security wage credits earned during military service will be added to the credits earned working in the civilian workforce.

Active duty military members began paying Social Security taxes in 1957, and veterans serving in the reserve forces began paying Social Security taxes on inactive duty pay in 1988. Veterans serving during the period extending from 1957 through 2001 had extra earning credits applied to their Social Security account to adjust for the lower earnings that veterans earned during military service. If you served sometime during 1957 through 1967, the extra credits will be added to your account when you apply for Social Security retirement benefits. Veterans who served after 1967 already have the extra credits applied to their Social Security account. There are no extra wage credits after 2001 for military pay.

Veterans with military service prior to 1957 also will receive extra credits applied to their Social Security account. From the beginning of the Social Security program through 1956, military members did not have Social Security taxes deducted from their wages. Veterans who served from September 16, 1940 through December 31, 1956 will have an additional $160.00 credit applied to their Social Security account for each month of service. Veterans must have been honorably discharged to be eligible for these additional benefits. If you are already receiving a government retirement benefit for the 1940 through 1956 period, you will not be eligible to have the extra credit added to your Social Security account. If you were still on active duty after 1956, the extra credits will be added to your account.


http://www.lenderva.com

No comments:

Post a Comment