Q: Please explain the Government Pension Offset, and how it will affect my Social Security income, once I turn age 62. I worked a full 40 quarters before I became a federal employee. Will my wife be able to receive full SS benefits once she turns 62 and or 65 years old? Or will she be penalized, because I'm a civil service retiree?
A: Many federal workers, as well as employees of state and local governments, are often rudely surprised when they retire. Two laws can reduce Social Security benefits if you also receive a public pension.
The Windfall Elimination Provision (WEP) reduces Social Security benefits of retirees who paid into the system for part of their careers and who also receive a government pension from work not covered by Social Security. It affects federal workers covered under the Civil Service Retirement System (CSRS), but not federal service where Social Security taxes are withheld like the Federal Employees' Retirement System.
Under the Windfall Elimination Provision, Social Security benefits of retired civil service employees can be reduced as much as $340 a month if you retire at age 62 in 2007. The reduction is less for people who have worked more than 10 years under Social Security-covered employment. This provision might affect your retirement benefit.
The Government Pension Offset (GPO) can any eliminate any spousal benefit to which you might be entitled based on your wife's work record, or it could reduce survivor's benefits to which you may be entitled should she die, by an amount equal to two-thirds your public pension.
Unless your wife has worked in a government job that did not withhold Social Security, she would not be affected by the WEP or the GPO rules. If she worked in a job covered by Social Security her entire career, chances are she will be entitled to Social Security retirement benefit based on her own work record.
Legislation to repeal these two laws has very widespread support, but Congress has yet to take action. "The Social Security Fairness Act" (H.R. 82) was introduced in the House by Representative Howard Berman (CA) and in the Senate (S. 206) by Senator Dianne Feinstein. TSCL supports legislation what would repeal Windfall and Offset laws that particularly disadvantage public workers like school teachers.
Social Security's web site has an online calculator that can help you determine if the WEP will reduce your benefit at www.ssa.gov or, for more information, look for the following two publications:
- Windfall Elimination Provision, SSA Publication No. 05-10045
- Government Pension Offset, SSA Publication No. 05-10007
If you have no internet access, call Social Security toll free at 1-800-772-1213.
June 2007
