Unfortunately, there are many misinformation regarding the abolition of the government’s pension offset, known as the GPO, which was signed into law at the end of 2024. There is confusion as to who was influenced by the change and whether retroactive Social Security benefits are from them.
Before the GPO was abolished, individuals who received pensions from jobs performed outside of Social Security, that is, jobs that were not paid with FICA tax, were not eligible for spouse or survivor benefits.
Before the abolition of the GPO, those who received pensions from jobs performed outside of Social Security reduced spousal benefits and survivor benefits, which were reduced by two-thirds of their pension volume. In many cases, offsets completely reduced the profits of the spouse or survivor.
For example, let’s assume that an individual was receiving a pension payment of $450 each month. Furthermore, let’s assume that without the offset, the monthly spouse’s Social Security benefits would be $250. A $300 (2/3 x $450) GPO offset completely eliminated the interests of the spouse.
However, now that GPOs have been abolished, the individual in the example above is entitled to a monthly spouse benefit of $250 per month, in addition to a pension payment of $450.
The same applies to the benefits of Social Security survivors.
Readers told me that Social Security representatives claimed that individuals who worked for the federal government under the Civil Service Retirement System (CSRS) that did not pay FICA taxes were not eligible for additional benefits as the abolition of the GPO did not affect them. That’s wrong. All federal employees receiving government pensions are entitled to the same benefits as all other workers who have received pensions from jobs other than Social Security. Therefore, if you are turned down for additional perks, you will need to file an appeal.
There is a 60-day period to submit an appeal that can be done online or in writing. If you wish to submit it in writing, please download SSA-561 and download Request for Reconsideration. This is available from the Social Security Administration website SSA.gov.
There was also confusion as to whether retroactive benefits would apply. The law that abolishes GPOs indicates that in some cases retroactive benefits from January 1, 2024 apply. Retrospective benefits only apply to individuals who previously claimed benefits, with profits reduced or rejected entirely due to a two-thirds offset. Full retroactive benefits apply only if the spouse of the individual receiving the pension has received Social Security benefits for at least six months, and the spouse applying for additional benefits is above the full retirement age and exceeds at least six months. The largest retroactive profit is six months, which decreases if these time frames are less than six months. If these times are less than six months, the retroactive profit will decrease accordingly.
Conclusion: Don’t believe rumours that abolishing the GPO is not effective and will not affect government workers registered with the CSR. The abolition of the GPO applies to all US employees who are receiving pensions from work performed outside of Social Security, and are eligible for spouse benefits and/or survivor benefits as a result of the Social Security benefits obtained by the spouse who applied for benefits. If your Social Security Officer accidentally states that GPO abolition does not apply to you, ask for a supervisor. Unfortunately, some Social Security personnel are not properly trained. If that approach does not resolve the issue, you must file an appeal.
Elliot Raphaelson welcomes your questions and comments at rapelliot@gmail.com.
