US Social Security

We moved to the USA in 1999 after contributing to Canada Pension since 1969. We have now completed our 40 quarters and are eligible for US Social Security and I plan on retiring in about 7 years. Our last Social Security satement showed that we would be eligible for $1,800 upon retirement. When checking with the local Social Secuirty office today we were told that if we work for less than 20-years in the US we would only be eligible for 40% of the above amount and that they would claw-back 2/3 of our Canada Pension, so basically they are saying we get 40% of the $1,800 less 2/3 of ($515) = $343 = a grand sum of $ 377 US. This does not seem correct and if so does not seem fair. They said that we cannot get an actual amount until we apply. Does this seem correct?

Confused Canuck in Georgia

The numbers are not quite right, but if you work less than 30 years (not 20) in US and get other foreign pensions (inluding CPP), you are theoretically subject to WEP (Windfall Elimination Provision), which will reduce your SS 'somewhat".

Some have successfully argued that their work in Canada qualifies towards the 30 year total and not been reduced.

The part about the initial 40% is wrong. I would not be trying to figureout the exact numbers at this point, since SS is bound to be revamped before you get it.

Note that if you move back to Canada, you are subjecting yourself to the Cdn claw-back on your OAS etc, which will not happen if you stay in US.

Note that if you move back to Canada, you are subjecting yourself to the Cdn claw-back on your OAS etc, which will not happen if you stay in US.

I disagree.

From what I have read on the SS Web site, a Canadian citizen eligible to SS benefits can move back in Canada (or in many other countries) still being able to continue collecting these benefits. OAS is payable to eldery Canadians with low income who had lived in Canada at least 10 years as adults. With 20 years of living in Canada, OAS could be also payed to Canadians who are living abroad. The eligibility to OAS is based on all sources of income. If a Canadian living in the USA is collecting SS benefits, they would be affecting his/her eligibility for OAS in exactly same way as if this individual lived in Canada.

The clawback is a tax issue. It has absolutely nothing to do with eligibility. Canada pays OAS, CPP, etc, and then, at year end determines if you should keep OAS if you make over a certain amount of money. It is called the OAS clawback. it applies only to Cdn residents. Non-residents are never subject to the clawback.

You should stick to asking questions and learning, rather than posting misinformation