r2i forum

Hi,

I am planning to r2i in 2010. By then I will complete 40 credits for social security eligibility. If I return w/o taking USC to india, will I get social security after age 65 or will I loose social security benefits??? Also, If we work after going back, does it affect(reduce) SS payments?

Thanks,
Jassi

You are eligible to receive Social security payments even if you are an Indian citizen, provided you are living in the US at the time that you receive the payments.

If you are an Indian citizen, social security payments will stop after you have been outside the US for six full calendar months. Once this happens, your payments cannot be started again until you come back and stay in the US for a whole calendar month.

See http://www.socialsecurity.gov/pubs/10137.html for details.

Working in India may affect your social security payments. See "Foreign worker test" in the above link:
Benefits are withheld for each month a beneficiary younger than full retirement age works more than 45 hours outside the U.S. in employment or self-employment not subject to U.S. Social Security taxes. It does not matter how much was earned or how many hours were worked each day.

Also keep in mind that Social security benefits are based on the average of the highest 35 years of your earnings. The earnings for each year that you did not pay social security taxes in the US will be counted as zero when calculating the average.

Nigel
http://www.retire2india.com

Thanks for the link. From the link it appears that even with 40 credits one has to be USC to be able to get social security.

No no..As of now, the current law states that if you are an Indian citizen (see undr one of the exceptions), then you do get soc sec even if you are outside the US at that time (of course if you have 40 credits).
Please see the excerpt below:

*

You are a citizen of one of the countries listed below, and the worker on whose record your benefits are based lived in the U.S. for at least 10 years or earned at least 40 credits under the U.S. Social Security system. If you are receiving benefits as a dependent or survivor, see additional requirements.

........
* India
* Indonesia

In the end, it states very clearly that: " If you are not a U.S. citizen and none of these exceptions applies to you, your payments will stop after you have been outside the U.S. for six full months".

My 2 cents..:)

V_B,

You are correct. I missed the last exception listed. It does state that Indian citizens are eligible to receive social security payments even if not living in the US.

Nigel

This issue has been beaten to death in multiple threads. You can do a search to read more . One need not be an US Citizen to get soc sec benefits while residing in India.

See these links

http://www.r2iclubforums.com/clubvb/showthread.php?p=8228&highlight=security#post8228
http://economictimes.indiatimes.com/articleshow/712357.cms
http://www.r2iclubforums.com/clubvb/showthread.php?t=454

Guys,
It is not too difficult for US Congress to change laws to favor residents and USC( current law allows Indian NRAs to draw soc security benefits after 30% flat tax).
Don't bank on soc security if you returning to India ( especially w/o USC)...

It was earlier mentioned only if you are a dependent or survivor, those dependent/survivors only would get the social security benefits. But in April 2016 the ssa has updated their rules where section 5 is split into two parts :
5.(a) if you are receiving on your "own earnings with 40 credits
5.(b) or if you are receiving based on the worker who earned 40 credits

and this is a Real boon to clarify the section where any Indian citizen having 40 credits would get social security after the 62 or 66 years as the case may be, and you never have to be a US Citizen with this clarification,

if none of the exceptions (sections 1 to 5) apply then you must be a US Citizen otherwise after 6 months the benefits would stop.