Social Security survivor benefits and the Government Pension Offset

If you or your spouse were participants in a non covered pension plan, this will impact your Social Security survivor benefits. Here's a brief discussion explaining the Government Pension Offset law and how it affects survivor benefits.

My professional focus is tax efficient retirement planning for individuals age 55+. Please visit our website or reach out!

Ted Erhart, CFP®
Financial Planner
Anoka, Minnesota

[laurencek.]

I did a 30 yr stint in local government with a GPO. However I still have almost 40 credits with other side jobs in the private sector. I could mitigate my WEP by either working longer for those substantial earning or collecting my Social Security after FRA. My strategy was to just get the minimum earnings per quarter since my WEP is pretty significant.

[HB-yqgy]

Thank you for your detailed description.

[falltravels]

I worked under social security for 15 years and 20 under a non covered state pension. I know the WEP will reduce my social security significantly. If my husband were to die before me, do I have to take his social security? If I do the GPO would certainly eliminate any social security I would get under my work or his.

[JasonOliver-gv]

If Sally had never worked and was a stay at home wife, she would be entitled to his spouse and survival benefits correct? Yet she hasn't paid a dime into the social security system either. This is not fair for public workers as they will be losing a total income stream AND subject to the widows single tax Needs to be repealed!

[ykmjc]

what if husband is covered under wep program and wife was civil service? We're both now retired.

[tisurmaster]

what if they lump the years? is the lump year counted? example they will have year 2000-2010 listed and others will have individual years with the amount I earned for those year. Will the lump year considered, in this case, 10 years of Social Security contribution?

[josea]

Well... $1000 is what I draw in SSAN after a 2/3 offset from an STRS teacher's $75 (which I collected lump sum in 2016 for $16k) monthly pension WHILE waiting to draw SSAN at FRA. 11 months later my spouse started to draw her SSAN and I filed for a spousal because she was the big earner. Do you know they took ANOTHER 2/3 off an increased (inflation) amount of the spousal I applied for? Between my SSAN and the spousal draw they have reduced my benefits by MORE than what I ("would have" since I took a lump sum) receive from STRS. Frustrating and not fair - it should be capped at ALL of my pension at least!

[Doriesep]

Hello. I am 74 and still teaching. My spouse retired in 1977. We were married in 1978. I started getting part of his retirement. I was completely supported by him.I had a child in 1980. In 1982 I went to work teaching and lost his retirement benefit though my son continued to collect his. Then my spouse died 2005. I began collecting his SS benefits while still working at my teaching job. Can you explain this exception and tell me if it applies to me? Also my adult child is disabled and I am hard of hearing in case that is important.

• Received, or were eligible to receive, a
federal, state, or local government pension
before July 1, 1983, and were receiving
one-half support from your spouse.
Thank you.

[reneec.]

I earned 40+ ss credits, later did 15 years in a state job with a pension. Husband died. I still won't get much $ because of this offset? He paid into as did I, but my 15 years of state work offsets both?

[donboggs]

Hello,
I hope you find this question interesting as I'm grasping at straws it seems.
So, retired 30 years Teacher Retirement Sustem (TRS) in Texas.
Was NOT a teacher; support staff. As such was NOT allowed to option out of paying Social Security taxes.
MySSA account shows how much I paid each year.
Wife passed so, at 65, applied for Survivor Benefits to build mine till full retirement age or 70 whichever I may need/choose.
SSA reduced with GPO rule. After Medicare Part B payment get $170/mo.
All attempts when speaking to SSA reps leads to, no recourse.
AND when I apply for my benefits am told, by SSA reps, GPO will apply to those as well.
So far, and I'm scrambling, all "support, not teacher" friends state they did not fall under this rule.

Do you see any recourse? I am writing to my congressman but, I only have 30 more days till "Appeal" window closes.
Thank you for informing others with your knowledge.
Bless

[Midrider]

Wow, you need to discuss abou someone who worked in private corporation for over twenty years who then went into a government pension job. One has paid their share of ss taxes and have the required amount of credits to receive social security, but gets punished when they retire and start receiving their private pension and get their ss reduced by 2/3 of their gov pension. For example it would leave me a widow, with around 200 a month or less depending on the size of my gov. pension. I feel like I will be in poverty, so don't want to retire ever ....

[mcarleton]

The example I need to see would match the Bob and Sally example where Sally's work is non-covered but in my case Sally dies first. If Sally had enough covered work to be eligible for SSA benefits for her survivors, would GPO impact what Bob could collect? Assume that Bob wants to start collecting SSA survivor benefits at his full retirement age so he can later switch to his own benefit at 70. The amount of survivor benefit he gets is no different than the benefit he would have gotten had his wife never worked the non-covered job so there is no winfall. One extra complication is that Bob might be eligible for a survivor benefit from Sally's non-covered pension plan. The SPO document from SSA says " Generally, we won’t reduce your Social Security
benefits as a spouse, widow, or widower if you:
• Receive a government pension that’s not based on your earnings;"
In this case, Bob's government pension survivor benefit is based on his wife's earnings, not his own. Does this meet the GPO exception? Is Bob subject to GPO despite having his whole working life payed into SSA?

[tonys.-kxeb]

Hello,

My wife came to the USA after working in Canada for about 14 years and she is entitled to a Canadian CCP pension Plan. She was collecting social sec. under her own record and now that I am retired she is getting a spousal benefit under my record which is of course higher. I have read that the GPO does not apply to foreign pensions and that is in the regulations. I assume that you agree? She has not turned on the CPP. One also reads that the WEP does not apply to spousal benefits. My confusion is whether althouhg my wife is collecting spousal benefits, will SS still apply the WEP to the portion of the spousal benefits that are attributable to her own SS work record and not the spousal benefits "boost". Thank you for any info or clarification.

[reginamartinez]

I have a question? I work at USPS i do pay into social security under the fers program. I will be retiring at age 58 Will my pension and annuities effect my survival benefits when i turn 60? Do i have to consider them as income?