Social Security is not a retirement plan, so it doesn’t have to make financial sense.  It’s a program to make sure everyone gets some money.

My phone appointment with an SSA rep just concluded.  He explained why they aren’t sending me as much money as I’d like.

It’s dumb because it’s all about expectations. 

I paid into SSA for 31 years, and retired after teaching for 25 years.  Under the old system, I thought my SSA benefit would be reduced by 60% because of my cushy teacher retirement.  Instead, my SSA benefit was more than I expected.  That was nice.

The new system would not reduce my SSA benefit at all.  Nobody saw that coming.  Not only would I get the full SSA benefit, but they would send a lump sum for a year of back pay.  That was nice.

My expectation was that my SSA benefit would more than double, but it only went up about a third.  The dumb thing is that I had never expected my SSA benefit would cover more than my utilities.  When Congress decided to restore full benefits, I expected a significant monthly payout.  I was baffled and irritated when that didn’t happen. 

As a Caterpillar engineer, I was working at the Joliet plant when the union contract was being negotiated.  The welders and machinists were paid well and had great benefits.  Because of overtime, they were making tons of money.  They worked hard in an unpleasant environment.  I asked one of the machinists what they were asking for in the next contract.

“I don’t know, but we damn well better get it, or we are walking out.”

I was being that illogical with SSA, but wanted someone at SSA to explain the calculation.  If there was a mistake and I should get more, I damn well better get it.

The SSA rep was out of the Columbus office.  With the new system, they had so many inquiries, the best they could offer was a phone appointment in three months. We had that today.

The rep was patient and knowledgeable.  Based on voice and cadence, I pictured him as Stanley from The Office. 

I asked for the detailed explanation, and he gave it, allowing me to ask questions as he went through the process.  It was so complex, I felt justified in making the appointment.  There was no way I could have figured this out.

The short version is that the old system did not reduce my SSA benefit as much as expected.  People who were paid more under SSA, had less of a benefit reduction under the old system.  Since I had been an engineer for eight years, my benefit reduction was more like 30%, rather than the expected 60% reduction.

Even though I get more from SSA now, I am not as enthusiastic about the new system.  Other people got a much bigger bump than I did.  The money doesn’t make a difference, but envy is still there.  That’s not good.

I haven’t even had breakfast yet, and I have committed of one of the Seven Deadly Sins.  My day is free, maybe I can knock off the other six.  It’s good to have goals to work toward.