How does the Government Pension Offset affect Social Security benefits?

by matteo.zboncak , in category: Retirement Planning , 10 months ago

How does the Government Pension Offset affect Social Security benefits?

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1 answer

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by kay.wiza , 10 months ago

@matteo.zboncak 

The Government Pension Offset (GPO) is a provision that affects Social Security spousal or survivor benefits. The GPO reduces or eliminates the amount of Social Security benefit a person may receive as a spouse or survivor if they are also eligible for a pension from a government job in which they did not pay Social Security taxes.


The GPO reduces the Social Security benefit by two-thirds of the amount of the government pension. For example, if a person receives a monthly government pension of $1,500, their Social Security spousal or survivor benefit would be reduced by $1,000 (two-thirds of $1,500).


If the government pension is larger than the person's potential Social Security benefit, the GPO would eliminate their Social Security spousal or survivor benefit entirely. This means that, in some cases, individuals who receive a substantial government pension may not be entitled to any Social Security spousal or survivor benefit.


It's important to note that the GPO only applies to spouses or survivors who receive a government pension that is based on their own work in a federal, state, or local government job where they did not pay Social Security taxes. It does not affect individuals who are receiving a spouse or survivor benefit based on the work of someone who paid into Social Security.