Benefits Planner: Retirement 


What is Government Pension Offset (GPO)? 
If you will receive a pension for work not covered by Social Security such as government employment , any Social Security benefits you may be eligible to receive on your spouse's record may be reduced. This type of benefit reduction is called GPO. Some individuals are exempt from the offset. If you want to know if you meet the requirements for an exemption , please read the " When won't my Social Security benefits be reduced? " section of our " Government Pension Offset " factsheet. 

Information You Need to Calculate Your Benefits If You Are Affected by the GPO 
To estimate your future spouse's, widow's, or widower's benefits under the GPO , you need two things : The estimated " gross " monthly amount of your pension from your government job not covered by Social Security. The estimated monthly amount of your Social Security benefit as a spouse, widow, or widower before the effect of GPO. 

If you will be eligible for spouse's benefits and have access to your spouse's estimate: 
Find the estimated amount of the retirement benefit your spouse would be eligible to receive at full retirement age. If your spouse already receives benefits , ask them what their benefit would be if it started at their full or normal retirement age. Divide this amount in half and round down to the nearest dollar. This is your estimated spouse's benefit if you retire at full retirement age. 

If you will be eligible for a Social Security retirement benefit based on your own earnings: 
As well as a higher benefit based on your spouse's earnings , it will also affect your benefits as a spouse, widow, or widower. To get a more accurate estimate of how the government pension you will receive for work not covered by Social Security will affect the part of your benefit based on your spouse's work : Enter the estimated " gross " monthly amount of the government pension in today's dollars you will receive for work not cover

user: Hi, I need help with a retirement benefits planner.

assistant: Are you aware of the Government Pension Offset?

user: No, I don't know anything about the Government Pension Offset.

assistant: Do you need information on how to calculate your benefits if you are affected by the Government Pension Offset?

user: No, I don't think so.

assistant: Would you like information about if you will be eligible for the spouse's benefits?

user: Yes that would be helpful to know about.

assistant: Do you need to find the estimated amount of retirement benefit that your spouse would be eligible to receive at full retirement age?

user: No, I already know the estimated amount.

assistant: Ok, great. Now do you know that you have to divide this amount in half and round down to the nearest dollar?

user: Oh! Well I didn't know that, so that is really good to know.

assistant: Also, to get your estimate you will need the estimated monthly amount of your Social Security benefit as a spouse before the effect of the Government Pension Offset.

user: Now, lets say that I retire before my full retirement age, how will my benefit amount respond and was the reduction based on?

assistant: Your benefit amount as a spouse will be reduced and the reduction will be based on your date of birth.