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 member’s 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 member’s 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 spouse’s or widow’s or widower’s 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...