Date: Sun, 14 Jan 2007 12:45:10 -0600
From: joetaxpayer 
Subject: Re: How to determine tax bracket, AGI or gross salary?
Newsgroups: misc.invest.financial-plan
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John Richards wrote:

> "Dave Dodson"  wrote in message 
> news:1168795641.299872.307630@11g2000cwr.googlegroups.com...
> 
>>
>> RML wrote:
>>
>>> What I actually meant to ask was, "Is SS reduced based on pension
>>> income and/or IRA withdrawals"?
>>>
>>> Thanks
>>>
>>> On Sun, 14 Jan 2007 06:52:22 -0600, "Dave Dodson"
>>>  wrote:
>>
>>
>> No. Social Security benefits are reduced from "earned income,"
>> including what shows up on a W-2 form, but pension income and
>> distributions from IRA accounts does not affect Social Security
>> benefits.
> 
> 
> Unless that pension income is from federal government civil service,
> as mine is. Not sure if state and local government pensions fall
> into that category.

2 points. Yes, state employees may not get SS, depending. My 80 yr old 
client was a teacher in Mass, and did not participate in Social Security 
(what her deductions were, while employed, I don't know, I just know she 
only collected the teacher retirement, not SS when she retired).
For the original question, no, nothing is reduced.
If you earned money Fed, or State as my teacher did, you don't earn the 
SS credits, it's not like she was expecting anything, and then found out 
that due to pension, she gets less SS.
If you have too much income at retirement, the SS is taxed, so the net 
effect is the same, but the SS check isn't reduced, just taxed more so. 
This may very well be nit-picky, but it's an important point.

On a side note, it's possible to work in government, earn the pension, 
and quit after 20 years, no SS earnings. Then work a civil job, and get 
20 years of SS credits and quit with both SS and the Gov pension.

JOE