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 there. Need some info about the retirement thing, please.

assistant: Sure. Do you mean a Government Pension Offset?

user: Yeah, yeah, that's the one.

assistant: Perfect.That GPO refers to a pension that you'll receive for your work but is not covered by Social Security, that would be in the case of government employment. Is that your case?

user: Yeah, that's me.

assistant: Right. In that case, you must know that any SS benefits you may be eligible to receive on your spouse's record may be reduced.

user: Um, ok, didn't know that. Well, i'll deal with that. In any case, can you tell me what happens if i'm eligible for benefits and i happens to know my spouse's estimate?

assistant: A moment. IN that case, you'll need to find the estimated amount of the retirement benefit your spouse would be eligible to receive at full retirement age.

user: I see. i'll get to it asap. Say, is there a way to get a more precise estimate about the pension i could receive?

assistant: Sure. If you want to know a more precise estimate, do as follow: Find and enter the estimated gross monthly amount you'll receive and not covered by Social Security. Then enter it on calculator. Be aware you must use your most recent estimate to determine your future benefit.

user: Wow, that's a lot information to handle. It is possible for me to get more personalized help?. I was wandering about retirement before full age, for example.

assistant: No problem. Just look for our toll free numbers to get more help or contact your local SS office.

user: All right, i'll keep that on mind. Well, a last question, then. If i go under the GPO, what i need to estimate future benefits?

assistant: You'll need only two things: The estimated gross monthly amount of your pension from your job not covered by Social Security, plus the estimated amount of your Social Security benefit as spouse, widow or widower. That would be before the effect of GPO.