Individuals who participate in the Ohio School Employees Retirement System (SERS) must carefully plan for retirement. They also need to consider what will happen if they become disabled and can no longer work. How will their participation in SERS impact their social security benefits?
What is SERS?
SERS is a program for individuals other than teachers who are employed by a public school system in Ohio. Office staff and administrators qualify for this program, as do bus drivers and custodians. Educational aides and cafeteria workers may also participate in the program.
Participants have money deducted from their paychecks, and these funds go to SERS rather than Social Security. However, individuals taking part in this program still pay into Medicare and Medicaid, so they remain eligible for health benefits from these programs if they meet the program requirements. What are the SERS effects on Social Security?
SERS And/Or Social Security
Participants want to know if SERS is in addition to Social Security or if participation in the state program replaces the federal government program. Ohio SERS replaces Social Security. Payroll deductions are handled differently when a person enrolls in the program, and the agencies providing benefits won’t be the same. Furthermore, the amounts received differ. What a person wants to know when enrolling in the program is the income they will receive when they retire and where it will come from.
Unfortunately, there is no single answer to this question. SERS is a pension fund and disability insurance program rolled into one. If a person pays into SERS during part of their career and Social Security during another part, they will be eligible to receive funds from both programs. To determine eligibility, a person must ask themselves if they worked for an employer other than an Ohio public school system during their career. If the answer is yes, they receive funds from both programs. Furthermore, if a person receives benefits from both programs, their spouse will be eligible to receive benefits from the same programs.
SERS benefits may reduce a person’s Social Security payments. The individual receiving the SERS payments is subject to the Government Pension Offset (GPO) or the Windfall Elimination Provision (WEP). Only those who are receiving their deceased spouse’s Social Security payments and started receiving payments from SERS before July 1, 1983, are subject to the GPO.
Many SERS participants find they are subject to WEP reductions in their Social Security benefits. Their payouts from the federal program decrease if they qualify for Social Security benefits, started participating in the state program after 1986, and contributed to Social Security via payroll deductions or self-employment taxes. The amount of these reductions is based on the amount received from SERS and the length of time the individual paid into both programs.
Applying for Disability Benefits
Any person applying for disability benefits must first apply to Social Security to determine if they are eligible for Social Security Disability or Supplemental Security Income. Anyone who has worked outside of Ohio public schools at any point in their career should be eligible for these programs. They will serve as the government disability insurer.
SERS and Teachers
Teachers working in a public school benefit from a different retirement plan. The State Teachers Retirement System is designed for individuals teaching students in kindergarten through twelfth grade. The information outlined above regarding SERS does not apply to them.
Many people speak with an attorney to ensure they know which program to apply for. Furthermore, an attorney can help them fill out the necessary paperwork to reduce the time needed to get the benefits approved. The attorney helps to eliminate any confusion, which a person in need of benefits appreciates.
