1. Home
  2. More
  3. Will This Retirement Perk Ruin My Social Security Spousal Benefit?
  • Sign up
  • Sign in
Money Talks News
  • Popular
  • Latest
    • Coronavirus
    • Ask Stacy
    • Make
    • Save
    • Borrow
    • Grow
    • Live
    • More
  • Deals
    • Automotive
    • Clothing & Accessories
    • Computers
    • Electronics
    • Everything Else
    • Financial Services
    • Gaming & Toys
    • Health & Beauty
    • Home & Garden
    • Movies, Music & Books
    • Office & Supplies
    • Special Occasion
    • Sports & Fitness
    • Store Events
    • Travel & Entertainment
  • Podcasts
  • Solutions
  • Academy
  • Subscribe to our newsletter
  • Follow us on Facebook
  • Follow us on Twitter
  • Search our site
Happy senior woman7 Wise Money Moves to Make in Your 50s and Beyond
7 Smart Ways to Recession-Proof Your Retirement7 Smart Ways to Recession-Proof Your Retirement
7 Smart Ways to Defend Yourself Against Soaring Gas Prices7 Smart Ways to Defend Yourself Against Soaring Gas Prices
Warren BuffettWarren Buffett’s 2-Step Plan for Surviving a Bear Market

Will This Retirement Perk Ruin My Social Security Spousal Benefit?

An unsparing provision might strip a woman of her spousal benefit.

Russell Settle • March 15, 2020 • Advertising Disclosure

Share on Facebook Share on Twitter Share by Email Share on Pinterest Printable version available to members PDF version available to members
Sad senior man
Diego Cervo / Shutterstock.com

Welcome to the Social Security Q&A. You ask a Social Security question, our expert provides the answer.

You can learn how to ask a question of your own below. And if you would like a personalized report detailing your optimal Social Security claiming strategy, click here. Check it out: It could result in receiving thousands of dollars more in benefits over your lifetime!

Today’s question comes from Judy:

“I receive a federal CSRS pension and I am not eligible for any Social Security benefits on my own record. In several months, my husband will claim his Social Security benefits. I believe I will then be eligible for a spousal benefit on his record. I also read that my spousal benefit will be reduced because of my federal pension. What can I do to maximize my Social Security spousal benefit?”

How a ‘ruthless provision’ kills Social Security benefits

Judy, there are several million people who may be in similar circumstances. About 2 million federal Civil Service Retirement System (CSRS) retirees have no Social Security on their own account. Moreover, many state and local retirees are not eligible for Social Security, since they paid into an alternative pension arrangement during their working years.

In addition, some public sector retirees worked enough years in covered employment to qualify for Social Security benefits in addition to their government pension.

Judy, let’s consider your case first. You are indeed potentially eligible for spousal benefits on your husband’s record. However, there is a strong chance that you will not actually receive anything.

You are affected by the Government Pension Offset (GPO) provision. This is a ruthless provision that can eliminate your potential spousal benefit. It may even eliminate your potential Social Security widow’s benefit.

Retire on Your Own Terms With Help From This Course
See Also:
Retire on Your Own Terms With Help From This Course

The GPO reduces your potential Social Security spousal benefit by $2 for every $3 of pension benefit (provided that the pension is based on employment not covered by Social Security). To illustrate, suppose your husband’s Social Security benefit at his full employment age (FRA) is $2,400 a month. Your maximum potential spousal benefit, therefore, is $1,200. If your government pension is $1,800 a month or more, you will get nothing in Social Security spousal benefits.

Now, if your husband claims his benefit at his FRA, your potential widow’s benefit is $2,400. It follows that if your government pension is $3,600 or more, you get no widow’s benefit from Social Security.

As noted above, some retirees have a government pension (from work not covered by Social Security) and they qualify for some Social Security benefits from at least 40 quarters of work in covered employment. In addition to being affected by the GPO, they are also affected by the Windfall Elimination Provision (WEP).

While the GPO reduces spousal benefits, the WEP reduces one’s retirement benefits. For those with fewer than 20 years of substantial earnings taxed by Social Security, retirement benefits are reduced by about $55 for every $100 in pension benefits, up to a maximum reduction of $480 a month in 2020. The WEP penalty declines as the number of years of covered employment increases beyond 20 years, reaching zero at 30 years of covered employment.

Got a question you’d like answered?

You can ask a question simply by hitting “reply” to our email newsletter, just as you would with any email in your inbox. If you’re not subscribed, fix that right now by clicking here. It’s free, only takes a few seconds, and will get you valuable information every day!

The questions I’m likeliest to answer are those that will interest other readers. So, it’s better not to ask for super-specific advice that applies only to you.

About me

I hold a doctorate in economics from the University of Wisconsin and taught economics at the University of Delaware for many years.

In 2009, I co-founded SocialSecurityChoices.com, an internet company that provides advice on Social Security claiming decisions. You can learn more about that by clicking here.

Disclaimer: We strive to provide accurate information with regard to the subject matter covered. It is offered with the understanding that we are not offering legal, accounting, investment or other professional advice or services, and that the SSA alone makes all final determinations on your eligibility for benefits and the benefit amounts. Our advice on claiming strategies does not comprise a comprehensive financial plan. You should consult with your financial adviser regarding your individual situation.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

  Like Article   Add a Comment

Sign up for our free newsletter!

Simple ways to make, save, and grow your money daily:

  happy subscribers    

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

MTN Podcasts

Every week our podcasts bring you lively money discussions that will give you a few laughs along with advice that will make you richer.

Money with Stacy Johnson

Listen/Subscribe

Read Next

Some of our favorite stories for you to read next.

Confused senior shrugging
3 Big Misconceptions About Social Security
Happy senior couple
3 Costly Social Security Mistakes That Women Make
Senior raising a finger to his lips
Can My Wife Use My Social Security Benefits While Letting Hers Grow?
Sign up for our free newsletter!

Join our many free newsletter subscribers building wealth and destroying debt:

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Popular Topics
  • Retirement Investment
  • Surveys for Money
  • How to Make Money Online
  • Emergency Stockpile
  • Free Movie Streaming
  • Senior Discounts
Connect
  • Support & FAQs
  • Memberships
  • About
  • Contact
  • Careers
  • Accessibility Statement
Media
  • Advertise
  • Television
  • Where We Air
  • Scripts
  • Sitemap
Legal
  • Terms
  • Privacy
  • Cookies
Editorial
  • Fact-Checking Policy
  • Ethics Policy
  • Corrections Policy
  • Ownership & Funding Info

Do Not Sell My Personal Information

© 2022 Money Talks News. All Rights Reserved.
‭1 (833) 669-8557 | 1732 1st Ave #26661, New York, NY 10128

Advertising Disclosure: This site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.

View This Page Without Ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Help us produce more money-saving articles and videos by subscribing to a membership.

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.

Sign up for our free newsletter!

Join our happy subscribers and sign up for our free newsletter! You'll get:

  • Tips and advice from our expert money reporters. (Our average experience is 18 years!)
  • Unexpected ways to make more and spend less, delivered to you daily.
  • The best deals and coupons to save on everything you buy.
  • Free copies of our eBooks '208 Ways to Save Money Every Day' and '108 Easy Ways to Earn Extra Cash', together a $29 value!

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.