Social Security and pension through PBGC
Hi, I am currently collecting Widows benefits from Social Security. And have recently lost my job. I’m 67 and considering to start taking my pension from Sears that is now being managed by the PBGA, Pension benefit guarantee corporation. I know if I wait longer the payout may be a little bit higher. Will it affect my Social Security income?
Terry Says
Depending on your total income, a portion of your social security benefits may become taxable.
If you file your income tax return as an individual with a total income that’s less than $25,000, you won’t have to pay taxes on your Social Security benefits. Single filers with a combined income of $25,000 to $34,000 must pay income taxes on up to 50% of their Social Security benefits. If your combined income is more than $34,000, you will pay taxes on up to 85% of your Social Security benefits.
And, the extra income from your pension might also impact your Medicare Part B and Part D premiums.
It’s called the “IRMAA” adjustment. Here are the income brackets for paying more than the standard Medicare Part B premium in 2025:
Income up to $106,000: No IRMAA surcharge
Income between $106,000 and $136,000: $65.90 surcharge
Income between $136,000 and $165,000: $164.90 surcharge
That “surcharge” is an additional amount charged every month, over the basic Medicare B premium of $185.
Now, let me make it clear that this is YOUR money and no reason not to take your benefits if needed, even though you will pay taxes on the extra income.
