Ask Mary Jane
Social Security and Government Employees Archive

Q. I worked and paid into Social Security for about 20 years. For the following nineteen years I served as a teacher and I did not pay into Social Security. When I applied for my social security, I was told I would receive only $140 per month. Further, I would not receive any benefit from my husband's social security since I did not contribute to Social Security while I was a teacher. As I see it, I am being penalized for teaching children for 19 years. Do you agree that an injustice has been done? Can you help me in any way?

A. Social Security has a number of offsets reducing monthly Social Security benefits for persons also receiving an annuity from employment not covered by Social Security. You are affected by two of them: the Government Pension Offset and the Windfall Elimination Provision.

The Government Pension Offset became law in December 1977. The rationale given for the change was it made Social Security spousal benefits comparable for couples whether both worked under Social Security or one worked in Social Security employment and the other in non-covered government employment. When both husband and wife work in Social Security employment, each is eligible for whichever is greater - his or her own benefit or a spouse or widow(er) benefit based on the other spouse's Social Security earnings record.

A problem with the Government Pension Offset is that in countless cases, the offset far exceeds the reduction that would occur if the husband and wife each had the same lifetime earnings, but solely in Social Security employment. This is particularly true with a mixed public and private career. Your spousal benefits are offset first by your own Social Security and the balance, if any, by two-thirds of your government annuity.

The Windfall Elimination Provision (WEP) of the 1983 Social Security Amendments deepens the lifetime benefit loss for the lower earning member of the couple if he or she had a mixed work career. WEP reduces a personal Social Security benefit for anyone who also has earned an annuity from non-Social Security employment. If you are receiving $140 a month, you are receiving 44.5 percent of the benefit you would be entitled to receive had you not also earned a non-Social Security annuity.

Your situation powerfully illustrates the unfairness of these two provisions. That's why the National Committee believes that the Congress should reconsider them, either by eliminating them outright or by modifying to make them less burdensome on those who are affected by them.

The Social Security Administration web site has extensive information about anti-windfall provisions. See http://www.socialsecurity.gov/pubs/10007.html , http://www.socialsecurity.gov/pubs/10045.html#amount , and http://www.socialsecurity.gov/retire2/anyPiaWepjs04.htm .

Q. I had my 40 quarters of Social Security over 30 years ago. I have since worked for a municipality and am receiving a pension from work that was not covered by Social Security. I find I cannot collect any Social Security because of my public employment.

A. That is not correct, and whoever told you that has misinformed you. No one who is fully insured for Social Security retirement benefits (i.e. has 40 or more quarters of Social Security covered earnings) is denied a Social Security retirement benefit because of the Social Security Act's Windfall Elimination Provision. The WEP reduces a monthly check, but does not eliminate it.

Q. My husband draws a government check in which they did not take out Social Security. Now he is working trying to get his quarters to draw Social Security. Is it worth the trouble of him working to draw as little as $100.00? From what I read he can draw Medicare off of me. I have more than enough quarters. And also why does he have to pay Social Security when he cannot draw it. Our CPA said that he is required by law to pay into Social Security. He is a private contractor and when we called Social Security they said it was up to him. We paid Social Security, but I do not think it is fair. Can he draw social Security off of me? He is older than I by 6 years. So what about Medicare for him?

A. Virtually all earnings in the U.S. are subject to Social Security FICA or SECA taxation. The limited exceptions include Federal, state or local government positions not covered by Social Security or employment with an international organization such as the World Bank or United Nations. Any Social Security Administration representative who told your husband it "was up to him" whether he paid Social Security contributions on his net private contractor earnings was in error and should be reported to the office manager or to a supervisor. For information on how those earnings should be reported, contact the Internal Revenue Service.

When you reach age 62, your husband will be eligible for premium-free Medicare Part A Hospital Insurance based on your earnings record. Since he is six years older than you that means he will be 68 before he is eligible for Medicare on your earnings record. Earning any additional credits he needs to be eligible for his own Social Security will entitle him to Medicare at age 65 or as soon thereafter as he gains the necessary 40 quarters. After he earns 30 quarters, he can purchase Part A for a reduced premium. Earlier eligibility for Medicare may be the most valuable result of gaining his own coverage.

Your husband will be eligible for Social Security at retirement age if he earns the necessary credits. The amount of his monthly benefit will depend on his average lifetime earnings in Social Security covered employment. Because he receives a non-Social Security retirement benefit, his right to a spouse benefit based on your Social Security earnings record will be limited by the Social Security Act's Government Pension Offset provision. His own Social Security benefit will be calculated based on the Windfall Elimination Provision.

For a fuller explanation go to http://www.socialsecurity.gov/gpo-wep/ .

Q. I am about to receive monthly Social Security Disability Insurance benefits. Since March of this year, I have received a small ($518) retirement check from the California State Teachers' Retirement System. We didn't pay into Social Security. Will my teachers' retirement affect my Social Security disability benefits?

A. Your Social Security benefit may be subject to the Social Security Act's Windfall Elimination Provision. This provision requires the use a reduced calculation method for determining Social Security when a wage earner has also earned a pension from non-Social Security covered employment unless he or she has at least thirty years of substantial Social Security earnings. The reduction in your Social Security cannot exceed half of your public pension.

Q. I am a 61-year-old widower. My wife was employed by a school district as a teacher. I receive her retirement benefits as a beneficiary. Will I be able to receive my own social security benefits at age 62 or 66 in addition to my deceased wife's retirement?

A. Yes. Receipt of a survivor annuity based on your wife's work record has absolutely no effect on your Social Security benefit. When you choose to apply for Social Security to begin, your monthly benefit will be determined solely on your earnings record, adjusted as appropriate by the age at which you retire. If you had personally earned a pension from non-Social Security employment, your Social Security might have been affected.

Q. A friend of ours who is a Federal employee was totally disabled 2 years ago due to a stroke. He has three daughters who are under 21. We are wondering if Medicare can be a secondary insurance provider to cover expenses that his Blue Cross/Blue Shield will not cover (for example his wheelchair and medicines)...and also do his children receive any benefits from his FERS retirement fund similar to the benefits that people who pay into Social Security receive. (He paid into the FERS fund but he never paid into Social Security).

A. Your friend's Federal employment must have been under the Civil Service Retirement System (CSRS), not under the newer Federal Employee Retirement System (FERS). Federal employees covered by the Federal Employee Retirement System (FERS) are also covered by Social Security. If your friend had been covered by Social Security and his disability was severe enough to meet the Social Security Administration's disability criteria, he would be eligible for Social Security Disability Insurance benefits for himself and his high-school age dependents. CSRS and FERS do not provide dependent benefits prior to the death of the disabled or retired Federal employee.

All Federal employees have contributed payroll taxes for Medicare Hospital Insurance beginning January 1, 1983. If your friend's disability meets Social Security disability criteria, he will be eligible for Medicare after he has received monthly cash disability benefits for 24 months. His Blue Cross/Blue Shield Federal Employee Health Benefit Plan (FEHBP) would function as a supplement to Medicare, not the other way around.

Q. My wife will retire from teaching in California next year at age 66. Presently, she is 65 and I am 64. We have been advised by our SS office that she will receive nothing from my SS credits, even after my death, since her retirement is through the state retirement system. First is this correct? Second, if this is correct, is there any reason for me not to start taking my own benefits as soon as possible since she will receive nothing from Social Security whether I am alive or dead?

A. When your wife begins receiving her public annuity, any Social Security spouse benefit she is entitled to receive based on your earnings record will be subject to the Government Pension Offset. That provision of Social Security law requires the reduction of any spouse or widow benefit otherwise payable by two-thirds of the public annuity. See http://www.socialsecurity.gov/pubs/10007.html . In countless situations, the Government Pension Offset means no spousal benefits are ever payable. If your wife will face a total offset, deferring your own Social Security benefit offers her no financial protection.

Q. I am a retired educator, and would like to begin collecting SS on my 65th birthday next March. Do you know the status of pending legislation that would repeal WEP or any other laws limiting SS for retired public employees? Anti-windfall bills seem to have many sponsors, but when are these bills going to actually be voted on? Should I wait to begin collecting my benefit? Thank you for your efforts!

A. Potential future changes in Social Security law should not be a factor in choosing when to begin your Social Security retirement benefit. If Congress modifies or repeals anti-windfall Social Security provisions, and we believe they should, the change is likely to include all affected individuals.

Q. How much will I be penalized at age 62 if I am collecting a retirement from a state program. I will collect $2,000 per month from PERS in the state of Nevada. I will be entitled to $300 from Social Security at age 62. What is the penalty?

A. The Social Security Act's Windfall Elimination Provision reduces a Social Security benefit by half of the first calculation bracket (a maximum reduction of 55 ½ percent of the regular amount calculated from the first bracket). If your regular benefit at age 62 was estimated at $300, your reduced benefit would be approximately $133. The maximum Windfall reduction for a wage earner reaching age 62 in 2011 would be $375 per month if benefits began at full retirement age (i.e. half of the $749 first calculation bracket for 2011).

Q. I am currently retired after 25+ years working for the federal government and I draw an annuity. My wife is still working and intends to continue. She will turn 66 next year. Does the fact that I draw an annuity from the federal government affect her Social Security income (she has survivor's benefits)? Will her continued employment affect this income?

A. No. Your Federal retirement annuity will have no affect whatsoever on your wife's right to her own Social Security or to a survivor Social Security benefit. Similarly, should you predecease her, her Social Security will not be affected by any Federal survivor annuity you may have provided.

Since your wife reaches full retirement age next year, her Social Security benefit receipt is subject to the higher annual earnings limitation ($37,680 in 2011). Beginning with the month she reaches full retirement age, she is entitled to a monthly benefit regardless of earnings. If she applies for benefits to begin in January, she will be entitled to a Social Security benefit for all 12 months if her 2011 earnings in the months before she reaches full retirement age do not exceed the annual limit. For each $3 in excess earnings, $1 in benefits must be withheld.

Q. I teach school in Texas, which has it's own Teacher Retirement Service, but I have enough quarters of Social Security to qualify for benefits. How will my benefits be affected? There has been much speculation, but no firm answers.

A. Anyone who has earned ten years of Social Security work credits receives a Social Security benefit at retirement age. There are no exceptions. Your benefit, however, may be subject to the Social Security Act's Windfall Elimination provision if you also receive a pension from non-Social Security covered employment.

The Windfall Elimination Provision (WEP) applies to every worker first eligible for Social Security after 1985 who receives a pension from non-Social Security covered employment unless the worker has at least thirty years of substantial Social Security earnings.

Q. I am currently a full-time federal employee. My most recent Social Security Statement estimates my full retirement age payment at about $712 a month. I intend to continue working until about age 67. My question is, since, as a federal employee I will be subject to the Windfall Elimination Provision when I retire, should I start collecting Social Security now or should I wait until my full retirement age? I understand that if I'm younger than my full retirement age and still working, there are limits on how much I can earn without affecting my benefit amount. What are the limits?

A. The annual Social Security earnings limitation is totally eliminated at full retirement age. Beginning with the month full retirement age is attained a benefit is payable regardless of earnings. Before full retirement age, the limitation essentially functions as a test of whether or not the wage earner has substantially left the work force. If the wage earner is out of the work force, retirement benefits are payable. If earnings suggest continued full or substantial employment, benefits are partially or fully withheld.

There are two earnings limitations. In 2011 the basic annual limitation applicable to persons less than full retirement age is $14,160 with $1 in benefits withheld for each $2 of excess earnings. The second limit is $37,680 with $1 withheld for each $3 of excess earnings. The higher limit is applicable only to the calendar year full retirement age is reached and applies to income earned in the months prior to the full retirement age month. For example, if you will reach full retirement age in September 2011, you could receive benefits for all 12 months of the year if you did not earn more than $37,680 in the months of January through August. For each $3 of excess earnings through August, $1 in benefits would be withheld.

Since you will be subject to the Windfall Elimination once you become entitled to a Civil Service Retirement annuity, it is to your advantage to begin benefits in the first month they can be paid. If you will reach full retirement age next year, I suggest you apply now asking that benefits begin in January 2011. Provide the Social Security Administration your best estimate of how much you will earn during the year. The Social Security Administration will determine how many months of benefits can be paid next year in spite of earnings over the limitation. Benefits will begin in the month they are due.

Q. I retired from civil service last April. In August, at age 62, I applied for Social Security. My Social Security was reduced by 50% of the benefit that I was awarded. Can you email the law and when it was passed that allow Social Security Administration to do that.

A. The Social Security Act's Windfall Elimination Provision (WEP) was a part of the Social Security Amendments of 1983.

The rationale behind the provision is that the regular Social Security benefit formula is deliberately biased in favor of persons with low average lifetime earnings. Low earners receive low monthly benefits, but those benefits are proportionately higher in comparison with previous earnings than benefits received by average or high earners.

Congress decided in 1983, that the benefit determination method intended to give an advantage to lifetime low earners was not appropriate for workers whose lifetime average Social Security earnings were low because part of their work life was in non-Social Security employment.

Q. My husband and I are retired CT teachers. We paid into our state teachers pension plan and not into social security. My husband has been working part time to gain his 40 quarters to qualify for Medicare. If he qualifies at 65 years, will I qualify under him? Or do I have to acquire 40 quarters on my own? I understand that he will never be able to qualify for Social Security payments because we worked in CT. Is this true? Could you clarify these questions?

A. When your husband has earned 40 Social Security work credits, you also will be entitled to Medicare on his record. when you reach age 65. It is not necessary for you to individually qualify for Social Security.

Anyone who has earned ten years of Social Security work credits receives a Social Security benefit at retirement age. There are no exceptions. Your husband's Social Security retirement benefit, however, will be subject to the Social Security Act's Windfall Elimination provision if he also receives a pension from non-Social Security covered employment.

Q. I'm 68 years old. I retired from Civil Service in 1999. I'm married and have an ex-husband, now deceased. I was told I cannot receive Social Security because I haven't enough quarters and I can't get either of my husbands' benefits because of the offset proposed by President Reagan in the 80's or whenever. I understand about people being double dippers on government checks but shouldn't there be, or is there a limited amount of money they can receive? I've been working for the past 3 years, what will happen to the monies I've paid in since I've been working?

A. The Social Security Act's Government Pension Offset provision became law in December 1977 but for most women did not become effective until December 1982.

The rationale given for the 1977 amendment was that it made Social Security spousal benefits comparable for couples whether both worked under Social Security or one worked in Social Security employment and the other in non-covered government employment. When both husband and wife work in Social Security employment, each is eligible for whichever is greater - his or her own benefit or a spouse or widow(er) benefit. Both benefits are not payable.

If you earn 40 Social Security work credits you will be eligible for a Social Security retirement benefit. However, a separate provision of law known as the Windfall Elimination Provision means your Social Security benefit will be determined by a separate, lower benefit formula because you receive a pension from non-Social Security employment.

An overview of both provisions can be found at http://www.socialsecurity.gov/gpo-wep/ . More detailed information about the Government Pension Offset can be found at http://www.socialsecurity.gov/pubs/10007.html . Detailed information about the Windfall Elimination Provision is on line at http://www.socialsecurity.gov/pubs/10045.html and http://www.socialsecurity.gov/retire2/anyPiaWepjs04.htm .

Q. I retired from the military in 1999. I have paid into social security for over 35 yrs. Since 1999 I have worked for a school district that does not pay into social security. My specific question: "can I draw both my social security and my teachers' retirement in the state of Texas without being penalized?"

A. You should be able to draw both your full Social Security benefit and your teacher retirement benefit. Anyone who has thirty or more years of substantial Social Security earnings is exempt from the Social Security Act's Windfall Elimination Provision. See http://www.socialsecurity.gov/pubs/10045.html for a listing of earnings considered substantial. If you have at least 20 years of substantial earnings but less than 35 years, you can calculate your benefit reduction at http://www.socialsecurity.gov/retire2/wep-chart.htm

Q. I am 59 years old and I have been on Social Security Disability and Medicare for 12 years. What will happen to my payment when I reach full retirement age? Also, when I die, will my wife be entitled to my benefits? She is 56 and is drawing retirement from PERA. Will that make a difference?

A. When you reach full retirement age, your Social Security benefit will continue uninterrupted. The only difference will be an in-house bookkeeping change at Social Security Administration headquarters. Disability Insurance benefits are paid from the Social Security Disability Insurance Trust Fund; retirement benefits are paid from the Old Age and Survivors Insurance Trust Fund.

At age 65 your wife will be entitled to Medicare based on your Social Security earnings record. She will be eligible for a spouse benefit as early as age 62, but whether any spouse benefit will be payable depends on the amount of her own public pension

Your wife's right to a spousal benefit is subject to the Government Pension Offset provision of Social Security law. This provision requires the reduction or offset of any Social Security spouse or widow benefit otherwise payable by two-thirds of any pension earned from non-Social Security covered government employment. An issue brief discussing the Government Pension Offset can be found at http://www.socialsecurity.gov/pubs/10007.html .

Q. A Federal retiree who is not eligible for social security has elected a 100 percent survivor annuity for his spouse. His wife is eligible for social security benefits based on her own work history. When he dies, does she collect the full 100 percent spousal survivor annuity plus her own social security or is her social security or survivor annuity reduced?

A. Receipt of a survivor annuity never affects a widow's own Social Security benefit. This wife, if widowed, will receive the full survivor benefit her husband provided in addition to her own Social Security benefit

Social Security's Government Pension Offset and Windfall Elimination Provisions affect only persons who personally earn a pension or annuity from non-Social Security covered employment. For example, the federal retiree in your example is ineligible for a Social Security spouse benefit unless two-thirds of his government pension is less than any spouse or widower benefit he is entitled to receive based on his wife's Social Security earnings record.

Q. My father recently applied for social security. With little explanation, he learned his social security would be reduced almost 47 percent because he is drawing a pension from the city he worked for. Please advise me where to go next as I suspect his social security should not be reduced.

A. Your father's benefit is subject to the Windfall Elimination Provision of the 1983 Social Security Act. The Windfall Elimination Provision requires a Social Security benefit to be determined by a reduced benefit method when a retiree also receives a pension from employment that was not covered by Social Security.

For further information about this provision see http://www.socialsecurity.gov/pubs/10045.html and http://www.socialsecurity.gov/retire2/anyPiaWepjs04.html

Q. I have paid my 40 quarters into the Social Security fund over the last 21 years from employment in the private sector. I am 40 years old and have started what I hope to be a Federal career. I am covered by the new FERS plan. Will Government Pension Offset or Windfall Elimination have an effect on the Social Security that I have already paid into the system? Please "say it ain't so."

A. The Government Pension Offset and Windfall Elimination provisions of the Social Security Act apply only to individuals who receive an annuity from non-Social Security covered employment. As your government employment is covered by Social Security, neither of these provisions will affect you.

When you become eligible for Social Security, your monthly benefit will be based on the lifetime earnings on which you contributed FICA taxes whether in private or public employment.

Q. I don't understand how 13 states can pass a social security offset. Social Security is a federal program. It seems unfair that I have worked and can't collect on my husband's Social Security while friends stayed home and they can. Also if I worked in another state I could collect. How can this be legal?

A. Social Security is a Federal law, identical in every state. What you are referring to is the Government Pension Offset that reduces (and often eliminates) Social Security spouse or survivor benefits for retirees who receive a pension from government employment that was not covered by Social Security. About three-fourths of all state and local employees are covered by Social Security. Public employees whose employment is covered by Social Security are unaffected by the Government Pension Offset but receive a spouse or widow/widower Social Security benefit only to the extent that the spouse benefit exceeds their own Social Security benefit.

For more information, see http://www.socialsecurity.gov/pubs/10007.html . (GPO).

Q. I retired at the age of 55. I had worked for the state of New York for 30 years doing clerical work in a college library. I drew my small state pension until I was 62 years of age and I then started drawing Social Security benefits based on my Social Security record. While I worked at the state library, I had no Social Security taxes removed from my salary. When I retired, I was told that when my husband passed away, I would receive his full Social Security. I've lost my husband but am not allowed to have any of his Social Security because of the double dipping law. I know they are trying to do better things to the Social Security law. Has anything at all been done that would enable me to get my husband's full Social Security? It would certainly help me immensely.

A. Your right to a Social Security widow benefit is affected by a provision of Social Security law known as the Government Pension Offset. This provision was enacted in 1977 and, for most women became effective in December 1982. To learn more about the provision, go online to http://www.socialsecurity.gov/pubs/10007.html .

Legislation to repeal or reduce the offset has been introduced in every Congress since the law took effect. Thus far, the legislation has not been favorably considered.

Q. Do pension offsets apply only to federal government pensions or also to state, county, and city pensions?

A. The Government Pension Offset of spouse and widow benefits applies to any public employment that was not covered by Social Security. The pension received could be from local, state or Federal employment.

A second offset, known as the Windfall Elimination Provision, reduces an individual's own Social Security if he or she also earned an annuity from non-Social Security employment that was not covered by Social Security. Pensions based on employment with international organizations located in this country or based on employment performed outside the United States can also invoke this offset.

Q. I have received contradictory advice. I am 66 and am still working but understand from my Social Security office that the Government Pension Offset applies to my widow benefit even though I have not retired from my government job. My co-worker receives her spousal benefit and tells me she won't lose it until she retirees. Who is right?

A. You have been misinformed. The Government Pension Office does not begin until a government retiree begins to receive a monthly pension from non-Social Security public employment.

Since you have reached full retirement age and are still working, you should apply immediately for your widow benefit. With repeal of the earnings limitation at full retirement age you are entitled to your widow benefit without regard to your earnings. When you retire, your widow benefit will be reduced by two-thirds of your government annuity. If two-thirds of your annuity exceeds your widow benefit, no further Social Security will be paid, but until you begin your government annuity, you are entitled to your full widow benefit.

The same advice applies to full-retirement-age spouses and any workers eligible for their own Social Security based on non-government employment. Repeal of the earnings limitation for anyone full retirement age or more enables workers continuing in the work force to receive their full Social Security determined without the Government Pension Offset or the Windfall Elimination reduction that will become applicable the month the government retirement benefit begins.

Q. I was born in April 1949. I want to know when I could start collecting Social Security? Also, I have been told because I have a state retirement, my Social Security benefit will be reduced. I would like to know why.

A. Under current law, you will be eligible to apply for a reduced Social Security benefit at age 62. The eligibility age for early benefits has not changed. You will be entitled to a full benefit at age 66.

If your state employment was not covered by Social Security but you are entitled to Social Security based on separate covered employment, the Windfall Elimination Provision of Social Security law will apply. That provision requires that your Social Security benefit be calculated by a reduced benefit formula unless you have at least 30 years of substantial Social Security earnings. For information about this provision, go on-line to the Social Security Administration's web site at http://www.socialsecurity.gov/pubs/10045.html and http://www.socialsecurity.gov/retire2/anyPiaWepjs04.html

If the Social Security benefit to which you refer is a spouse or widow(er) benefit, you will be subject to the Government Pension Offset if your state employment was not covered by Social Security. For further information read the Social Security Administration Government Pension Offset fact sheet at http://www.socialsecurity.gov/pubs/10007.html .

Q. My wife receives a small public pension. She worked as a part-time cook for a local school system where she earned approximately $160 per month. Does an offset apply to her Social Security spouse benefit? I have provided the majority of the income and support while she worked? Or does the offset apply regardless of income. Does the offset apply to a widow with a public pension? I have been unable to find anyone at Social Security who can verify the applicable section of the statute. Please help clarify!

A. Your wife's Social Security spouse or widow benefit (based on your Social Security earnings record) is subject to the Government Pension Offset provision. That provision, enacted in 1977, is Section 202(g)(4) of the Social Security Act. The fact that you have always been the family's primary wage earner is not a consideration.

The Government Pension Offset requires the reduction of any spouse or widow benefit otherwise payable by two-thirds of any pension received from public employment that was not covered by Social Security. In many instances, Social Security spouse or widow benefits are totally offset.

For more information about the offset, go on line to the Social Security Administration at http://www.socialsecurity.gov/pubs/10007.html . (GPO).

The National Committee is a nonprofit, nonpartisan organization that acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the board of directors and professional staff. The work of the National Committee is directed toward developing a secure retirement for all Americans.