Special payments and government pensions. Yes, your special monthly payment is reduced by the amount of any periodic benefit under a governmental pension system for which you are eligible for that month. If you are married, your special monthly payment may be reduced if your spouse is eligible for a benefit under a governmental pension system. It does not matter whether you or your spouse is retired and receiving the governmental pension.
Eligibility is the controlling factor.
A periodic benefit under a governmental pension system means any pension, annuity, or similar payment established by the U.S., a State, any political subdivision of a State, or any wholly owned instrumentality of one or more of these governmental entities. This includes monthly Social Security benefits and railroad retirement annuities and pensions. Lump-sums paid in place of a periodic benefit are also included. If you are eligible for a governmental pension, the amount of your pension is subtracted from your special monthly cash payment. If your spouse is eligible for a governmental pension, but is not entitled to the special payment, your special payment is reduced.