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HOW THE GOVERNMENT
PENSION OFFSET MAY AFFECT SOCIAL SECURITY BENEFITS?
by Jinky C. Mesias
The government pension offset is in fact a reduction in the benefit
which a social security members spouse is likely to experience
especially if the spouse has a government pension from work that is not
covered by the Social Security. The benefit to be received by the spouse
with regards to the social security benefits of his or her spouse will
be offset by two-thirds of the amount he or she will be receiving as her
or his government pension.
And in the course of the Social Security members death the spouse will
continuously received his or her annuity as well as survivors benefits
from the government pension plan that he or she is enrolled in. The law
requires that if a legitimate working individual is receiving a pension
from a federal, state or local government with regards to his or her
work and therefore did not pay Social Security Taxes, the Social
Security spouses or widows or widowers benefits may be offset. The
offset or the reduction will comprise 2/3 of the government pension. But
if ever the social security spouse or widow or widower takes on the
government pension in lump sum, the amount of benefits that can be
derived from the Social Security Benefits will be calculated with the
necessary reduction resulting to a monthly benefit like payments just
similar to what the Social Security spouse, widow or widower is
receiving when working in the government.
The Social Security benefits for spouses, widows and widowers are given
to compensate for the spouses who stayed at home to take care of the
family and who are completely dependent on their working spouse for
financial supports. But due to the difficulties of the present time more
and more couples are obligated to work in order to suffice the everyday
needs of the family.
The benefit provided by the Social Security for spouses is intended to
offset the dollars earned during the time the Social Security member is
working by means of the retirement benefit. And with the housewives
working and earning their own Social Security Benefits the payment or
the benefits they are suppose to receive as part of their husbands
Social Security benefits are then offset by their own Social Security
benefits. But with the enactment of the Government Pension Offset
provision those housewives whose work are covered by the government
pension are also to receive the full amount of Social Security Benefit
out from the Social Security benefit of their husbands.
Jinky C. Mesias is a graduate of Bachelor of Science in Business
Administration Major in Business Management. She is at present an
Associate Manager of a Life Insurance Corporation and a freelance
writer.