Page 20 THE REVERE ADVOCATE – FRIDAY, MAY 10, 2024 OBITUARIES Deborah WINDFALL ELIMINATION PROVISION O D’Agresta-Roselli ver the years in my estate planning/fi nancial planning practice, this issue has come up time and time again. What is the Windfall Elimination Provision? If you work for an employer that does not withhold social security taxes from your pay each week (such as the Commonwealth of Massachusetts, another government agency, local city or town or even an employer based in another country) the governmental pension or foreign country pension that you will ultimately receive may very well serve to reduce the social security benefi ts that you otherwise would have been entitled to. The Windfall Elimination Provision (WEP) aff ects how the amount of your social security retirement or social security disability benefi t is calculated if you were to receive a pension based upon your work history where social security taxes were never withheld. The WEP applies if you earned a pension in any job where you did not pay into social security and you also worked in other jobs throughout your working years long enough to qualify for social security retirement or disability benefi ts. The WEP may apply if: • You reached 62 years of age after 1985; • You became disabled after 1985; • You fi rst became eligible for a monthly pension based on work where you did not pay into social security after 1985, even if you are still working. Social security benefits are intended to replace only a percentage of a worker’s pre-retirement earnings. The way social security benefi ts are calculated, lowerpaid workers get a higher return than highly-paid workers. For example, lower-paid workers could get a social security benefi t that equals about 55% of their pre-retirement earnings. The average replacement rate for higher-paid workers is only about 25%. Prior to 1983, people who worked mainly in a job not covered by social security had their social security benefits calculated as if they were long-term, lowwage workers. Consequently, they had the advantage of receiving a social security benefit representing a higher percentage of their earnings, in addition to the pension they were receiving from a job where they did not pay into the social security system. Congress passed the WEP to eliminate that advantage. Social security benefits are based upon the worker’s average indexed monthly earnings (AIME) adjusted for inflation. AIME represents the average of your highest 35 years of indexed earnings. Indexed earnings are adjusted for inflation to reflect the equivalent value near the time of your retirement. Your average earnings are separated into three amounts and those amounts are multiplied by three factors. For example, for a worker that turns 62 in 2024, the first $1,174 of average indexed monthly earnings is multiplied by 90%; the next $5,904 by 32%; and the remainder by 15%. The sum of the three amounts equals the total monthly social security benefit that the worker would stand to receive. The 90% factor is reduced in the modified formula and phased in for workers who reached age 62 or became disabled between 1986 and 1989. For those who reached 62 or became disabled in 1990 or later, the 90% factor reduced to 40%. There are exceptions to this rule. For example, the 90% factor is not reduced if you have 30 or more years of “substantial” earnings in a job where you did pay into social security. The Social Security Administration has produced a table that sets forth the substantial earnings figures from 1937 to 2024. There is a second table that shows the percentage to use depending on the number of years you actually had of substantial earnings. So if you had 30 or more years, you use the 90% factor. If you only had 20 or less years, you only use a factor of 40%. 25 years of substantial earnings gives you a factor of 65%. Substantial earnings for 2024 is $31,275. To see the maximum amount that your benefit could be reduced, go to the following website. www. ssa.gov. You’ll be able to see the section on the Windfall Elimination Provision. The WEP does not apply to survivor benefits. It also does not apply if: • You are a federal worker first hired after 12-31-83; • You were employed on 12-31-83 by a nonprofit organization that did not withhold social security taxes from your pay at first, but then began withholding social security taxes from your pay; • Your only pension is based upon railroad retirement; • The only work you did where you did not pay social security taxes was before 1957; • You have 30 or more years of substantial earnings under social security If you get a relatively low pension, you do have some protection. The reduction in your social security benefit cannot be more than ½ of the amount of your pension that is based on earnings after 1956 on which you did not pay into social security. For more information, go to the social security website at www.ssa.gov or call 1-800-772-1213. Joseph D. Cataldo is an Estate Planning/Elder Law Attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a Master’s Degree in Taxation. O f Plymouth Ma, formerly of Revere. Died on Wednesday May 1st at the Beth Israel Deaconess Medical Center in Plymouth following a brief illness at the age of 71. Debbie was born in Revere to her late parents Vincent “Jimmy” D’Agresta and Marianne (Vitale) D’Agresta. She was raised in Revere as an only child who was constantly surrounded by many loving aunts, uncles, and cousins. Deb cherished both her immediate and extended family. Her dedication to her family was demonstrated by her selfl ess donation of a kidney to her father when he was ill. Debbie was educated by Revere public schools and was an alumna of Revere High School, Class of 1970. She furthered her education at Boston State College, earning a degree in elementary physical education. Debbie later shifted her studies to optometry, becoming “Dr. Deb” when she earned her Doctor of Optometry degree from the New England College of Optometry in 1992. From that time on, Debbie worked as an optometrist, and for many years she was employed at Kadrmas Eyecare in Plymouth. Debbie enjoyed 20 years of marriage and loving companionship with her husband Frank Roselli until his passing in 2019. Deb and Frank enjoyed their life in Plymouth, doting on their beloved dog, Misha, and spending as much time on their boat and in their camper as they could. Life changed for Debbie after Frank’s passing, but she continued to adore Misha and maintained an active social life, dancing with her friends in The Silver Slippers and singing with the Golden Melodies Chorus. She maintained her faith as an active communicant at St. Mary’s Parish in Plymouth. In addition to singing and dancing, gymnastics was a passion of hers. From a young age, Debbie was an avid and accomplished gymnast and taught gymnastics at several locations on the North Shore. Debbie loved to watch gymnastics and followed U.S. gymnasts closely. She also loved fi gure skating and would rarely miss an opportunity to watch a competition on television. Debbie will be missed greatly by her cousins and extended family, as well as many friends, who adored her and enjoyed spending time with her. Family and friends are welcome to attend a Funeral Mass on Friday May 10th at 10:00 a.m. in St. Anthony of Padua Church, 250 Revere St., Revere. A celebration of Debbie’s life will be held in Plymouth at the end of May. In lieu of fl owers, remembrances may be made to St. Jude’s Children’s Research Hospital, 501 St. Jude Place Memphis, TN 38105. The staff at Vertuccio Smith & Vazza Beechwood Home for Funerals, 262 Beach St. Revere, are most honored to have assisted the family with completing funeral arrangements. REVERE PUBLIC SCHOOLS Public Hearing Notice is hereby given in accordance with the provisions of Section 61 of Chapter 71 of the Massachusetts General Laws, that the Revere School Committee will conduct a public hearing on Tuesday, May 21, 2024, at 6:00 p.m. in the Emmanuel M. Ferrante School Committee Room and via Zoom. High School, 101 School Street, for the purpose of discussing and voting the enrollment of non-resident students (also known as School Choice) in the Revere Public Schools. May 10, 17, 2024
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