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: Hello there. I'm looking for information about benefits planning, specifically retirement, please?

assistant: Sure. Do you want to know about a Government Pension Offset?

user: Yes, please. I would like to have the information.

assistant: This pension is for those who will receive a pension for work not covered by social security. Is that your case?

user: No, now i heard the explanation, i think it's not my case.

user: Well, i guess i have to be sure about what i'm looking for. Anyway, another question, lets say i am eligible for a retirement benefit on my own, but i do have a benefit based on my spouse's earnings, that will have any effect on mine's?

assistant: Yeah, it will. If there is a higher benefit, this will also affect your benefits as a spouse, widow or wdower.

user: Ok, ok. Look now, what would be my spouse's benefit if she is already receiving benefits?

assistant: If that's the case, you'll have to ask your spouse what its benefit would be if it started at full retirement age. Then, you'll have to divide that on half, rounding it to the nearest dollar. That would be the benefit.

user: And what about if i want to retire before the normal age? Would be any effect?

assistant: Sure, there will be. If you retire before normal age of retirement, then your benefit amount as spouse will be reduced and could be up to 30% of reduction. That percentage is based on your date of birth.