How do military retirement benefits affect Social Security benefits?

Military pay and military retirement pay are different

You can receive both a military retirement pension and Social Security. A military pension does not reduce your Social Security benefit and is not wages to add to your Social Security earnings history.

Covered earnings from military service are included in the earnings record used to calculate Social Security, along with other covered work. Active-duty service has generally been covered since 1957; inactive-duty service in the Armed Forces reserves has been covered since 1988. Some earlier service can qualify for special earnings credits.

Entering the information in Social Security Timing

• Use the client's Social Security statement or historical earnings record for their Social Security benefit calculation. Do not add the military pension as Social Security-covered wages.
• If you are modeling the client's broader retirement income, account for military pension income separately in the appropriate income fields. It is not already part of the Social Security monthly payment.
• For the earnings test, distinguish wages or net self-employment earnings from retirement pension income. Review our earnings-test article.

The Social Security Fairness Act repealed WEP and GPO for benefits payable for January 2024 and later. Do not apply those former reductions to a 2027 benefit because of a noncovered pension.

Military survivor benefits and Social Security survivor benefits have their own rules. Confirm any coordination with the Department of Defense or the client's military retirement adviser.

Source: SSA: Military Retirement and Special Earnings Credits; SSA: Pension income and WEP/GPO repeal.