MILITARY UPDATE
If it sounds too good, triple check it
By Tom Philpott
Dr. Charles D. Willis, a 77-year-old retired psychiatrist, did a smart thing in April when he asked the Social Security Administration to check if it had applied wage credits, earned during two tours in the Army, when it calculated his monthly benefit at age 65.
Six weeks later he received a check for $28,534.
Willis waited for a confirmation letter before spending the money. It came a few days later, signed by an assistant regional commissioner for SSA.
Only then did Willis spend the money. He paid off a few small loans, cleared his wife's credit cards and then bought her a new car, paying cash.
Now, recall the old adage, "If it sounds too good to be true."
One day after Willis allowed an interview on his good fortune, the psychiatrist left an excited voice-mail message for me saying SSA officials "are crazy." It's hard to blame him.
That day he received a second letter from the same SSA official. There had been a processing error. Willis now owed Social Security $27,681.
Willis has a good lawyer — his daughter — and promises that, in the end, it will be cheaper for the government to let him keep the money. Stay tuned.
The most important lesson for veterans is that Willis does get to keep $853, because SSA had not applied his wage credits properly. He was following the good advice of Mark Olanoff, assistant director of the American Legion's legislative commission.
In a February letter to the veterans advice column Sgt. Shaft — which appears in the Washington Times and is written by disabled Vietnam vet John Fales — Olanoff said not enough veterans are aware that they earned wage credits. They can help ensure those credits are applied to their benefits if they bring in copies of their DD 214.
For many years, people serving in the military didn't participate in Social Security. When Congress decided it was unfair that those defending their country got a slow start accumulating Social Security credit, it changed the law to give the military wages credits, sort of pretend income, toward setting future SS benefits. The wage credit is $160 a month for active duty service time from 1940 through 1956.
In 1957, military members became full participants in Social Security but they continued to accumulate some wage credits. Wage credits for service from 1957 though 1977 are $300 per quarter.
More complex wage credit rules apply for years served after 1977 but the annual maximum remained at $1,200.
Congress ended wage credits in 2001 after deciding that service members are better paid today and that existing wage credits were losing their importance and value.
The Social Security Web site is www.socialsecurity.gov and toll free number is (800) 772-1213.
Dr. Willis took two smart steps. A third, in hindsight, could have saved him a lot of trouble. If veterans check on wages credits and receive an eye-popping adjustment, and even a confirmation letter, they should take one more step and ask SSA to show them the math.
Comments and suggestions are welcomed. Write to Military Update, P.O. Box 231111, Centreville, VA 20120-1111 or e-mail milupdate@aol.com.
