Retiree's Union Pension Suspended After Short Construction Job Despite Full Retirement Age
A retired ironworker who reached full retirement age (67) worked 40 hours on a bridge project and found his union pension payment suspended for that month, while Social Security continued to pay. This discrepancy arises because multiemployer union pensions operate under different rules than the Social Security Administration. Once someone reaches FRA—currently set at 67 for those born in or after 1960—the earnings test no longer affects their Social Security benefits. However, many pension plans can suspend payments if a retiree works more than 40 hours within the same industry, trade, and geographic area covered by that plan. The article highlights how retirees may unknowingly trigger these rules when returning to work in similar roles after retirement. Failing to report such employment could lead to overpayment recovery actions where future pension checks are garnished.
Topics: Earnings test Retiree employment Social Security Union pensions