Akron Beacon Journal: Two types of offsets cut Social Security benefits

Akron Beacon Journal, December 17, 2007

Windfall Elimination Provision might reduce level, but if you earned credits, you will still get a check

Q: I'm a teacher and will receive a pension from the Ohio State Teachers Retirement System. I'm also eligible for Social Security from my husband and on my own. Could you explain the government offsets and how they will affect me at retirement? I've been told I will not be eligible for anything from Social Security because of a two-thirds offset of my teacher's pension. — H.B., Tallmadge

A: There are two offset provisions, and many times the rules are confused.

One is called Windfall Elimination Provision, and it affects the calculation of benefits for retired and disabled workers.

Under the WEP rules, a modified benefit formula is used to figure the amount of a worker's own benefit when that worker also receives a pension based on his or her noncovered employment. Social Security benefits might be lower under the modified WEP formula, but they are never totally eliminated. For more specific information, look at the online WEP calculator on our Web site (http://socialsecurity.gov).

The other provision is called Government Pension Offset. GPO affects people who are eligible for Social Security as a spouse/surviving spouse and also are eligible for a pension based on their noncovered government employment.

Under GPO rules, the spouse/surviving spouse's Social Security benefit is reduced by two-thirds of the government pension amount. Unlike WEP, GPO can totally eliminate the Social Security benefit.

Q: My husband received a pension from Ohio PERS, and I receive Social Security retirement. He died on Nov. 15. Two weeks ago, Ohio PERS sent me a letter stating I will be paid a survivor pension from his account. Will the PERS pension reduce my Social Security benefit? He was not eligible on my record because of PERS, and I'm afraid it will reduce my payment. — D.G., Barberton

A: No, the survivor pension should not reduce your Social Security amount. Each offset provision specifically states the offset applies when a person receives a public pension based on ''their own
(noncovered) work.''

The survivor pension is based on your husband's work. Here's the official wording for the provisions: Windfall Elimination fact sheet states ''Your Social Security retirement or disability benefits may be reduced if you work for an employer who does not withhold Social Security taxes from your salary, such as a government agency or an employer in another country . . . ''

The Government Pension Offset fact sheet states: ''If you receive a pension from a federal, state or local government based on work where you did not pay Social Security taxes, your Social Security spouse's or widow's or widower's benefits might be reduced.

Q: I appreciate your explanations about public pensions and their effect on state workers. I have a question about exemptions from these provisions. Is it true if a person is exempt from one public pension, they are automatically exempt from the other one? — J.K., Aurora

A: No. The offset provisions are different in their rules, exemptions and applications.

The best way to understand the differences is to compare the fact sheets found on our Web site at http://socialsecurity.gov.

Send questions to Joe Paukovich, Social Security Administration, Second Floor, Federal Building, 2 S. Main St., Akron, OH 44308. Fax: 330-375-5616 or e-mail: Joseph.Paukovich@ssa.gov.