How Much Extra Social Security Do Veterans Get?
Maximize your understanding of how military service enhances Social Security benefits for veterans and clarifies benefit distinctions.
Social Security is a federal insurance program providing retirement, disability, and survivor benefits. Many people wonder how military service might impact these benefits, often assuming there is an “extra” payment for veterans. This article clarifies how military earnings are credited and distinguished from other benefits available to veterans.
How Military Service Affects Social Security Benefits
Active duty military service earnings are generally covered by Social Security, similar to civilian employment, with contributions made through payroll taxes. Beyond these direct contributions, the Social Security Administration (SSA) provides special additional earnings credits, often called “deemed wages,” for certain periods of military service. These credits are added to a service member’s earnings record, potentially increasing their overall benefit amount.
For military service from 1957 through 1977, service members are credited with an additional $300 in earnings for each calendar quarter of active-duty basic pay. For service between 1957 and 1967, these credits were typically applied when veterans applied for benefits, sometimes requiring proof of service. For service from 1978 through 2001, the SSA credits an additional $100 in earnings for every $300 of active-duty basic pay, up to a maximum of $1,200 annually. For service from 1968 onwards, these special credits were automatically added to earnings histories. After 2001, there are no special extra earnings credits for military service; earnings from military service post-2001 are treated as regular covered earnings.
These additional earnings credits, along with regular military earnings, are factored into a veteran’s average indexed monthly earnings (AIME). The AIME determines the Primary Insurance Amount (PIA), which is the base amount of monthly Social Security benefits a person receives at full retirement age. A higher AIME, influenced by these credited earnings, generally results in a higher PIA and a larger monthly Social Security benefit. These credits contribute to the overall earnings record, rather than directly increasing the monthly benefit payment.
Veterans are encouraged to regularly review their Social Security earnings record to confirm that their military service and any applicable deemed wages are accurately reflected. This review can be conducted by creating or logging into a personal “my Social Security” account online or by requesting an earnings statement from the SSA. Comparing the credited amounts on the earnings record with W-2 forms or other pay records from military service can help ensure accuracy.
Social Security and Other Veteran Benefits
It is common for individuals to confuse Social Security benefits with other benefits provided to veterans. The Social Security Administration (SSA) and the Department of Veterans Affairs (VA) are distinct federal agencies, each administering separate programs with different eligibility criteria and purposes. Social Security benefits are based on an individual’s work history and contributions to the system, while VA benefits are typically related to military service-connected disabilities or specific needs.
VA disability compensation is a tax-free monetary benefit paid to veterans with service-connected disabilities. Receiving VA disability compensation does not reduce or affect an individual’s Social Security benefits, nor does Social Security impact VA disability benefits. Veterans can receive both types of benefits concurrently.
Another type of VA benefit is the VA pension, a needs-based program for wartime veterans who meet certain age or disability requirements and have limited income and net worth. While Social Security income is taken into account when determining eligibility and the payment amount for a VA pension, receiving a VA pension does not directly reduce or add to an individual’s Social Security benefits.
There is no direct “extra” Social Security payment solely due to veteran status, beyond the earnings credits for military service. Any additional financial support veterans receive is typically through separate Department of Veterans Affairs programs, designed to address specific service-connected conditions or financial needs. These programs operate independently of the Social Security system.