For an estimate of how GPO could reduce your Social Security benefit, refer to the GPO calculator. If you take your government pension annuity in a lump sum, we will calculate the reduction as if you chose to get monthly benefit payments from your government work. Why will my Social Security benefits be reduced?

2 days ago · The Act was signed into law on January 5, 2025.. The Act ends the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These provisions reduced or eliminated the Social Security benefits of over 3.2 million people who receive a pension based on work that was not covered by Social Security (a “non-covered pension”) because they did not pay Social Security taxes.

BACKGROUND: The Government Pension Offset (GPO) adjusts Social Security spousal or widow (er) benefits for people who receive “non-covered pensions.” A non-covered pension is a pension paid by an employer that does not withhold Social Security taxes from your salary, typically, state and local governments or non- U.S. employers.

GPO: In December 2021, about 724,000 Social Security beneficiaries, about 1% of all beneficiaries, had their benefits reduced by the GPO. Of those people penalized by GPO 71% lose their entire Social Security benefit. 83% of those affected by the GPO are women.

Here are the most common questions I receive on the GPO, how it works, and how it can impact your Social Security benefits: Why does the GPO exist? What if a retiree inherits their spouse’s non-covered pension? What is the GPO last 60-month rule (formerly the “last day” rule)?

Jan 10, 2025 · H.R. 82 – The Social Security Fairness Act – was signed into law earlier this week, eliminating Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).

Oct 10, 2018 · A Social Security rule called the Government Pension Offset (GPO) could reduce your spousal benefits if your pension is from a “non-covered” government job in which the FICA taxes that largely fund Social Security were not withheld from your paycheck.

Jan 23, 2025 · Those affected can use this online tool to get an estimate of how much their Social Security benefits have been or would be reduced due to the WEP and GPO. Social Security also has a WEP chart that shows how years of substantial earnings can change your reduction ( download PDF here ).

Apr 5, 2024 · Two questions regarding the Government Pension Offset (GPO): First, as a long-time local government employee, I have a 401(a) account and a 457 account. Neither account has a defined benefit (or typical monthly payment) because they are both defined contribution plans.

The Government Pension Offset (GPO) applies to a spouse's Social Security benefit for any month the spouse receives a pension based upon his or her own government employment not covered under Social Security. For a definition of a spouse, see GN 02608.100B in this section.