In many cases, the effect of the GPO is to eliminate a spousal or survivor Social Security benefit through a spouse’s Social Security-covered employment. Image: Rix Pix Photography/Shutterstock.com
By: FEDweek StaffA Congressional Budget Office analysis of the impact of pending bills (HR-82 and S-597) to repeal the Social Security windfall elimination provision says the action would increase Social Security benefits for affected it by $360 a month on average at first, rising to an estimated $460 a month in 2033.
The estimate further says that repealing the government pension offset would increase benefits at first by an average of $700 a month for spouses and by an average of $1,190 for surviving spouses; in December 2033, that increase would reach $860 and $1,520, respectively.
The WEP reduces a Social Security benefit earned through employment covered that system of someone drawing a benefit from a retirement system that does not include it, such as CSRS and some state and local government retirement systems. The reduction, up to above $500 a month currently, is not as severe for those with at least 20 years of Social Security-covered earnings above an annual threshold (this year, $31,275) and is eliminated for those with 30 or more years.
The GPO reduces Social Security spousal or survivor benefits by $2 for each $3 the beneficiary receives in an annuity from a retirement system that does not include Social Security. In many cases, the effect of the GPO is to eliminate a spousal or survivor Social Security benefit through a spouse’s Social Security-covered employment.
About half of current federal retirees are drawing benefits under CSRS, although only several percent of current federal employees are under that system, since the FERS program covers everyone first hired after 1983.
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See also,
How to Handle Taxes Owed on TSP Roth Conversions? Use a Ladder
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