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Old 01-01-2015, 03:17 PM
 
Location: Grove City, Ohio
10,138 posts, read 12,402,575 times
Reputation: 13987

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Quote:
Originally Posted by MadManofBethesda View Post
WEP will not impact her state pension at all. (WEP never affects pensions; it reduces one's Social Security benefit.) However, that $1,138 you're counting on could be affected by Social Security ' s Government Pension Offset (GPO). If your wife didn't contribute to SS while working for the state, her SS spousal benefits will be reduced by 2/3 of her government pension. For example, if her state pension is $300/month, her SS spousal benefit will be reduced by $200. Consequently, instead of receiving $1,138 from SS, she would only receive $938/month.
Yes, you are correct but it is easier for me to count on all her social security but non of her pension.

As you say if she gets $300 state pension her social security will be reduced by $200 but at the end of the day, or month in this case, she will still receive $100 more than her social security would have been alone.

In budgeting I am treating that $100 as if it were found money on the street. I figure we can buy 7 bottles of a particular wine we like with that so it's all good!
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Old 01-01-2015, 03:39 PM
 
8,211 posts, read 11,929,872 times
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Quote:
Originally Posted by nicet4 View Post
Yes, you are correct but it is easier for me to count on all her social security but non of her pension.

As you say if she gets $300 state pension her social security will be reduced by $200 but at the end of the day, or month in this case, she will still receive $100 more than her social security would have been alone.
That's true in your wife's case since she only has a small government pension. However for some people with large government pensions, the GPO completely wipes out any entitlement to a spousal Social Security benefit. This is the major difference between the WEP reduction and the GPO. WEP only reduces one's SS benefit based on their own work history; GPO can completely eliminate any spousal or survivor's benefit.
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