My wife is a retired California teacher receiving a State Teachers’ Retirement System (STRS) pension. She has not paid into Social Security. I am eligible to collect Social Security. Can she collect Social Security spousal benefits while I’m alive or death benefits if I die before her?
Your wife may be eligible for spousal and widow’s Social Security benefits, but the amount may be reduced because of the Government Pension Offset (GPO), which affects many people who earned a pension from a federal, state or local government and did not pay Social Security taxes. The GPO affects certain federal civil-service employees and some state- and local-government employees, such as some police officers, teachers and others who did not pay into the Social Security system, says William Jarrett, of the Social Security Administration. He recommends talking with a representative at your local Social Security office to help calculate the impact on her benefits.
The GPO reduces the spouse’s Social Security benefit by two-thirds of his or her government pension. If your wife is subject to the GPO and receives a monthly pension of $600, for example, then two-thirds of that ($400) must be deducted from her Social Security benefits. So if she’s eligible for a $500 monthly spouse’s or widow’s benefit, then she’ll receive $100 per month from Social Security ($500 – $400). If she takes her STRS pension annuity as a lump sum, then Social Security will calculate the reduction as if she chose to get monthly benefits, says Jarrett.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For more information about the Government Pension Offset, see the GPO fact sheet and calculator. For more information specifically for CalSTRS pensions, see Social Security, CalSTRS and You. The CalSTRS fact sheet can help people calculate the impact of the GPO on their spousal benefits, as well as calculate their own Social Security benefits if they paid into the system during one job but not another (a situation called the “Windfall Elimination Provision”).
For more information about Social Security benefits, see our Social Security Special Report.
-
Take Charge of Retirement Spending With This Simple StrategyTo make sure you're in control of retirement spending, rather than the other way around, allocate funds to just three purposes: income, protection and legacy.
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
Getting Out of an RMD Penaltyretirement When your brokerage firm miscalculates your required minimum distributions, you have recourse.
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
-
It’s Not Too Late to Boost Retirement Savings for 2018
retirement Some retirement accounts will accept contributions for 2018 up until the April tax deadline.
-
How to Correct a Mistake on Your RMDs from IRAsretirement If you didn't take out the correct required minimum distribution because your brokerage firm made a mistake, the IRS may show some leniency.
-
Making the Most of a Health Savings Account Once You Turn Age 65
Making Your Money Last You’ll face a stiff penalty and taxes if you tap your health savings account for non-medical expenses before the age of 65. After that, the rules change.
-
Reporting Charitable IRA Distributions on Tax Returns Can Be Confusing
IRAs Taxpayers need to be careful when reporting charitable gifts from their IRA on their tax returns, or they may end up overpaying Uncle Sam.
-
Make the Most of the New Military Retirement Plan
retirement The government is offering a new retirement option so that service members who leave the military before qualifying for a pension can still receive some benefits.
-
How Changes in Income Affect Medicare Premiums
Medicare Medicare beneficiaries can see their premiums go up if their income rises, although for some that increase will be only temporary.
