Government Pension Offset Explained
Government Pension Offset explained — If you receive a pension from work where you did not pay Social Security taxes (a “non-covered” pension), the Government Pension Offset (GPO) can reduce—or even eliminate—any spousal or survivor benefits you’d otherwise receive from Social Security. Understanding when GPO applies, how the formula works, and what limited exceptions exist can help you plan the best claiming strategy for your household.
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Government Pension Offset: the basics
- What GPO affects: It applies only to spousal and survivor benefits. It does not reduce your own worker benefit—that’s the Windfall Elimination Provision (WEP), a different rule.
- The formula: Social Security reduces your spousal/survivor benefit by two-thirds (2/3) of your non-covered government pension.
- Result: If 2/3 of your pension is greater than or equal to your potential spousal/survivor benefit, your Social Security spousal/survivor payment can be reduced to zero.
When Government Pension Offset applies
- You receive a pension from non-covered employment: Federal, state, or local government job where you did not pay Social Security taxes.
- You’re eligible for spousal or survivor benefits: As a current spouse or divorced spouse (meeting divorce duration requirements), or as a widow/widower.
- Timing: GPO applies when the pension is based on your own non-covered work and you’re entitled to the Social Security auxiliary benefit for the same month.
Government Pension Offset vs. WEP (key differences)
| Rule | What it reduces | Triggered by | Typical example |
|---|---|---|---|
| GPO | Spousal & survivor benefits | Your own non-covered government pension | Teacher with state pension seeks spousal benefit on spouse’s record |
| WEP | Your own worker benefit | Own non-covered work plus some covered work | Police officer with city pension also worked in Social Security-covered jobs |
Examples: how the GPO reduction works
- Example 1—Spousal benefit fully offset: Your monthly non-covered pension is $3,000. Two-thirds is $2,000. Your spousal benefit would have been $1,500. Since $2,000 ≥ $1,500, your spousal benefit is reduced to $0.
- Example 2—Partial offset: Pension is $1,200; 2/3 is $800. Your survivor benefit would be $1,400. After GPO, you’d receive $600 ($1,400 − $800).
- Example 3—No pension yet, no GPO yet: If your pension hasn’t started, GPO can still apply if you are entitled to it based on the same work; exact timing can matter—let’s confirm your details.
Exceptions & special cases (limited)
- 60-month “last-day” rule: If your last 60 months of government employment were covered by Social Security (and certain other conditions are met), GPO may not apply.
- Previously covered positions: Some transfers between agencies or districts can affect whether the 60-month rule is met; the specifics are technical—worth verifying with HR and SSA.
- Survivor coordination: Survivor benefits have separate rules from spousal benefits; GPO can still apply, but the benefit base and timing differ.
Planning strategies around Government Pension Offset
- Verify coverage history: Pull your mySocialSecurity earnings record and confirm whether your last 60 months were in Social Security-covered employment.
- Model survivor outcomes: If you’re the higher earner, delaying your own Social Security can materially increase a future survivor benefit for your spouse.
- Coordinate with Medicare & taxes: Wages, pensions, RMDs, and annuity income can affect taxation of benefits and IRMAA. See our Medicare & Social Security guide.
- Consider household income sources: Where GPO eliminates spousal benefits, we can evaluate guaranteed income options to backfill essential expenses—see Lifetime Income.
Helpful resources:
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FAQs: Government Pension Offset explained
What does Government Pension Offset reduce?
GPO reduces spousal and survivor benefits you’d receive from Social Security if you have a non-covered government pension. It does not reduce your own worker benefit—that’s WEP.
How is the GPO amount calculated?
Social Security subtracts two-thirds of your non-covered pension from your potential spousal or survivor benefit. If the result is zero or negative, no payment is due.
Does the 60-month rule eliminate GPO?
Possibly. If your last 60 months of government employment were covered by Social Security (and certain conditions are met), GPO may not apply. Confirm specifics with your HR office and SSA.
Does Government Pension Offset apply to divorced spouses?
Yes—if you’re otherwise eligible for a divorced spousal or survivor benefit, GPO generally applies the same way.
Can working longer help offset GPO?
Working in covered employment won’t remove GPO by itself unless it satisfies the 60-month rule. However, delaying your own benefit or improving your earnings record can help your household plan.
