The government pension offset is in fact a reduction in the benefit which a social security member’s spouse is likely to experience especially if the spouse has a government pension from work that is not covered by the Social Security. The benefit to be received by the spouse with regards to the social security benefits of his or her spouse will be offset by two-thirds of the amount he or she will be receiving as her or his government pension.
And in the course of the Social Security member’s death the spouse will continuously received his or her annuity as well as survivors benefits from the government pension plan that he or she is enrolled in. The law requires that if a legitimate working individual is receiving a pension from a federal, state or local government with regards to his or her work and therefore did not pay Social Security Taxes, the Social Security spouse’s or widow’s or widower’s benefits may be offset. The offset or the reduction will comprise 2/3 of the government pension. But if ever the social security spouse or widow or widower takes on the government pension in lump sum, the amount of benefits that can be derived from the Social Security Benefits will be calculated with the necessary reduction resulting to a monthly benefit like payments just similar to what the Social Security spouse, widow or widower is receiving when working in the government.
The Social Security benefits for spouses, widows and widowers are given to compensate for the spouses who stayed at home to take care of the family and who are completely dependent on their working spouse for financial supports. But due to the difficulties of the present time more and more couples are obligated to work in order to suffice the everyday needs of the family.
The benefit provided by the Social Security for spouses is intended to offset the dollars earned during the time the Social Security member is working by means of the retirement benefit. And with the housewives working and earning their own Social Security Benefits the payment or the benefits they are suppose to receive as part of their husbands Social Security benefits are then offset by their own Social Security benefits. But with the enactment of the Government Pension Offset provision those housewives whose work are covered by the government pension are also to receive the full amount of Social Security Benefit out from the Social Security benefit of their husbands.
Jinky C. Mesias is a graduate of Bachelor of Science in Business Administration Major in Business Management. She is at present an Associate Manager of a Life Insurance Corporation and a freelance writer.
Written by: Jinky C. Mesias
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HOW THE GOVERNMENT PENSION OFFSET MAY AFFECT SOCIAL SECURITY BENEFITS?
