Government Pension Offset

What is it?

Your spouse’s, widow’s or widower’s benefits through Social Security may be offset by two-thirds if you have a government pension where you did not pay Social Security taxes. Keep in mind, your own Social Security benefits will not be reduced, only the benefits that come from a spouse’s employment.

Before the Government Pension Offset was enacted, the SSA would have to pay out full Social Security benefits to a spouse even if that spouse earned their own monthly Social Security retirement benefit. Now with this provision, when it comes to determining the spouse’s benefits, workers who do not pay Social Security taxes are essentially treated in a similar manner to those who work in the private sector and pay Social Security taxes.

There are a handful of provisions in which your spouse’s benefits will not be reduced, including if your spouse is receiving a government pension not based on their earnings. More about these exceptions can be found at the SSA’s fact sheet on Government Pension Offset. You can also contact one of our benefits specialists to learn more about your Social Security benefits.

Helpful Links:

• Supplemental Security Income (SSI) Resources
• Social Security Program Rules
• Summary of the 2014 Annual Reports from the Social Security and Medicare Boards of Trustees
• Social Security Resources from AARP
• Social Security 101: What’s in it for me?
• Can You Count on Social Security?
• How to Get the Most from Your Social Security Benefit
• CSRS vs. FERS
• SSA: Social Security Calculator (Estimate Social Security Benefits)