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GOVERNMENT PENSION OFFSET
A Law That Affects Social Security Benefits for Spouses If you are a spouse or widowed and you work for a federal, state or local government is not covered under Social Security, the Government Pension Offset rule may apply to you. The Offset rule affects government workers who do not pay Social Security taxes and who are eligible to receive a Social Security benefit based on a spouse's work. Some, or all of, the Social Security benefit may be reduced by the amount of the pension you receive based on your government work.
The offset will reduce the amount of your Social Security spouse's or widow(er)'s benefits by two-thirds of the amount of your government pension. In other words, if you get a monthly civil service pension of $600, two-thirds of that, or $400, must be used to offset your Social Security spouse's or widow(er)'s benefits. If you're eligible for a $500 widow(er)'s benefit, you'll receive $100 per month from Social Security ($500 - $400= $100). If you take your annuity in a lump sum, the offset is figured as if you chose to receive regular monthly benefits.
From the beginning of the Social Security program, spouse's benefits were intended for women and men who were financially dependent on their spouses who worked at jobs covered by Social Security. Before the offset provisions were enacted, many government employees qualified for a pension from their agency and for a spouse's benefit from Social Security, even though they were not dependent on their spouses.
Some people may be exempt to the Offset rule. To find out if the Offset rule applies to you, contact Social Security. You can obtain more information at www.socialsecurity.gov, call the toll-free number at 1-800-772-1213 or contact your nearest Social Security office.
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