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So you get a pension and your SS is reduced by that amount? Isn't that the point of the pension? Big nothing burger.
It means you contributed to a pension directly or indirectly as well as social security and now you don't get the social security that was part of the original deal. It's a little nibble away at the edges to soften retirees up for the next nibbles
This is incorrect. The conditions here are applicable to former employees who are collecting a pension from an employer that did NOT contribute to social security.
The number of people that this impacts is small but not insignificant. About 2 million people, or 3 percent of Social Security beneficiaries, according to a February 2023 report by the Congressional Research Service. Most are former federal workers who were hired before 1984, when the U.S. civil service was brought under the Social Security system, and ex-employees of some state and local government agencies.
Appreciate the clarification, I was not aware that some federal workers were outside of the social security system!
This has always been the case though. I've seen someone retire and they offer you a choice on how to structure your SS and pension, monthly, lump sum, etc. Generally those pensions are going to be much higher than social security anyways. For the few that still get them. i.e. predominantly public sector employees.