The Top 7 Questions about the Government Pension Offset (GPO)

by | Jan 12, 2024 | Spousal IRA | 22 comments

The Top 7 Questions about the Government Pension Offset (GPO)




If you’ve ever worked in a government job where you didn’t pay Social Security taxes and earned a pension from that work, it’s critical that you understand the Government Pension Offset because this rule can drastically reduce, or even completely eliminate, your Social Security spousal or survivors’ benefits.

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The Government Pension Offset (GPO) is a topic that many people may not be familiar with, but it can have significant implications for individuals who are receiving or will receive a government pension. To help shed some light on this important issue, here are the top 7 questions about the GPO:

1. What is the Government Pension Offset (GPO)?
The GPO is a provision in the Social Security Act that affects individuals who receive a government pension based on work that is not covered by Social Security. This could include work for a federal, state, or local government agency. The GPO reduces the amount of Social Security spousal or survivor benefits that a person may be entitled to if they receive a government pension.

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2. How does the GPO impact spousal or survivor benefits?
If an individual receives a government pension that is not covered by Social Security, their Social Security spousal or survivor benefits may be reduced by an amount equal to two-thirds of their government pension. This reduction can significantly impact the amount of Social Security benefits that a person may receive.

3. Who is affected by the GPO?
The GPO primarily affects individuals who receive a government pension based on work that is not covered by Social Security. This could include teachers, firefighters, police officers, and other public employees who may not have paid into the Social Security system during their government employment.

4. Are there any exemptions to the GPO?
There are certain exemptions to the GPO, such as if an individual’s government pension is based on work for which they paid Social Security taxes for a significant portion of their career. Additionally, individuals who receive government pensions based on work for a foreign government or for certain international organizations may also be exempt from the GPO.

5. How can individuals determine if the GPO applies to them?
Individuals can contact the Social Security Administration to determine if the GPO applies to their specific situation. The SSA can provide personalized information and answer any questions that individuals may have about the GPO and its impact on their Social Security benefits.

6. Can individuals still receive some Social Security benefits if the GPO applies to them?
Even if the GPO reduces an individual’s spousal or survivor benefits, they may still be eligible to receive a portion of their spouse’s or deceased spouse’s Social Security benefits. However, the amount of benefits may be reduced due to the GPO.

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7. Are there any efforts to change or eliminate the GPO?
There have been ongoing efforts to change or eliminate the GPO, as it has been a point of contention for many government employees and retirees. Some advocates argue that the GPO unfairly penalizes individuals who have dedicated their careers to public service and were not given the option to pay into the Social Security system. However, as of now, the GPO remains in effect and continues to impact individuals who receive government pensions.

In conclusion, the Government Pension Offset is an important provision that affects individuals who receive government pensions and may also be entitled to Social Security spousal or survivor benefits. It’s important for individuals to understand how the GPO may impact their benefits and to seek guidance from the Social Security Administration or other financial professionals if they have questions about their specific situation.

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22 Comments

  1. @lunawolf

    Help! I keep getting conflicting information everywhere I look, including the SS Admin!! I have had a few appointments and waiting on another one with SSA, as (I am opening up my survival benefits for next year as money is tight now and need it) and some people @ the SSA do not understand my situation and I get different answers! I worked in a non pension environment for 34 years. I currently work with a municipality, no SS taken out, just pension $$, my balance as of now is roughly 12K. Must be fully vested for 10 years to get pension. I will not be fully vested as I will be retiring in 2-3 years. My plan was to take out my $$ with the retirement Co and pay the 20% taxes when I leave. My pension Co says no SS will not take it into consideration as I do not/will not "have" a pension each month. Its like I have a savings account and will get the money back. 2 appt's with SS mentioned nothing about a pension decreasing my monthly amount, perhaps because I paid into SS for over 30 years?? Can you or someone shed some light? I would greatly appreciate it! Thank You

  2. @jimbrauer1711

    MISSOURI TEACHERS BEWARE: Social Security will STEAL your benefits….especially….your SURVIVOR BENEFITS! Repeal: WEP & GOVERNMENT PENSION OFFSET. HR 82. S 597. My deceased husband PAID IN….and I DON'T get ANY of his larger benefit! Theft!!!

  3. @josephjuno9555

    They didnt contribute so they dont deserve it! Sounds like Stupid Plan! They shud pay ito SS and then get all the normal benefits?

  4. @dorabrown2221

    Hi Devin
    Thank you for you for YouTube videos. My Question is the following Iam 61 years old , i will be getting my state pension in few month I also working for a non profit. When I file for SS would that affect my pension? Thanks

  5. @weilingly7664

    What if I got a government pension from my ex-husband 1800 per month, when I retire from my own social security, will my $1,000 from the social security be reduced to zero? I really appreciate if anybody can help me answer this question

  6. @cliffluxion7019

    Thank you! This will help my wife decide whether to take a small pension from her part-time public employment or just take a lump sum distribution including interest.
    I managed to avoid the WEP for myself, but she may have to make some hard choices regarding a public pension since she would be taking spousal benefits from my SSA record instead of her own. She is entitled to her own SSA benefit of $600 or $700 per month (unless she is impacted by WEP) but the spousal top-off from my SSA record should be worth an additional $600 to $700 per month.
    Can she be impacted by both WEP and GPO?

  7. @johnponm

    I have a Federal pension, and also SS payments from part-time work! ??

  8. @walterknox5953

    Social Security is Federal welfare. Seniors are greedy

  9. @jlselc

    What is the 1st spousal benefit? Is it 2/3 of their benefit? If so SSA screwed me over. I was not collecting disability for myself nor did I retire early.

  10. @samuelcantley5500

    This shows government is organized crime

  11. @samuelcantley5500

    You will always be the slave of the government

  12. @torchape

    Thanks, Devin! My wife retired from a school system here in Colorado and receives a pension. I am semi-retiring in about 3 weeks on July 1. I am waiting to apply for my SS benefits until I am 70. So I just had a conversation with a Social Security employee and asked about the GPO. She told me that if my wife was to apply for a spousal benefit, that would only be for half of my FRA benefit, not for the benefit I would be drawing at 70. And it turns out that 2/3 of her pension is exactly what her SS spousal benefit would be. She might get $20 or so. Not even worth applying for unless I pass before her.

  13. @zxej6879

    This part of Ronald Reagans war on goverment employees. It was NOT an immoral problem to be corrected. It was stupid politics.

  14. @danmalone7639

    Are you referring to Atlanta, Georgia or Atlanta, Texas?

  15. @douglaswhite9777

    When I was 47 years old I was all done with the federal government I was given a pension with the understanding that I would still receive a bonus take the bonus at47 or wait till I was 60 I opt out to wait till I was at my full retirement age that I would not be penalized for it that age was 70 years old I'm glad that I did so because I saved myself a tremendous amount of headaches in the meanwhile they continue to take taxes out of me until I was at my f .r.a otherwise I would have been stuck with one hell of a tax bill

  16. @Neal_and_Chai

    There are different government pension mainly Cival service CRCS (which did not pay SS) and then FERS Federal employee retirement system which do pay SS. Some are retiring now that are both.

  17. @flacodanny7369

    Thank you, keep up the good work.

  18. @petershure4054

    Devin: I am curious. Is the WEP being considered to be eliminated or changed to be more fairly computed now? Last I heard there was legislation in progress. Please respond. Thank you

  19. @nealmorgan1636

    Hey Devin, My wife is a retired Texas teacher. I will start my Social Security next year at 70. Will her spousal benefit be calculated on my age 70 benefit or on the benefit I would have received at full retirement age plus the COLA?

  20. @richb1576

    In my case my wife has always been a stay at home mom.
    Just like the school teacher from texas my wife has put 0 dollars into SS.
    Unlike this teacher my wife will receive half my ss when I retire and all of it when I Die.
    So whats the difference?

  21. @deboraryther8230

    This raises another question. I am A Texas teacher. Does the GPO count against the 401 K I will be the beneficiary of if my husband passes away.

  22. @thomashall6937

    Hi Devin, I have 30 years of substantial earnings under the windfall elimination provision I also have a pension would it be better for my wife who does not have a pension but will get social security, to take my spousal benefit until she becomes full retirement age, or age 70 and then take hers, or can I not do that? My wife would be the higher earner.

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