The Rationale
The GPO, which passed in 1977, was imposed to stop highly paid federal civil servants from being able to double-dip into Social Security and other pensions.
The Formula
The GPO deprives retired educators of their spousal and survivor benefits under Social Security. Typically spouses of Social Security recipients receive half of the amount of their partner’s benefit if they do not qualify for Social Security on their own. Under the GPO, that amount is reduced by twothirds
of the amount of a CalSTRS pension.
For example: John collects a Social Security benefit of $800 a month. His wife Mary is a retired school teacher drawing a CalSTRS pension of $1,200 a month.
Effect of GPO With Living Spouse
Mary’s Potential Social Security: $800 x 1/2 = $400
CalSTRS Pension Calculated for GPO: $1,200 x 2/3 = $800
Total Monthly Social Security: $400 – $800 = No benefit
Effect of GPO Upon Death
Mary’s Social Security Survivor (Death) Benefit: $800
CalSTRS Pension Calculated for GPO: $1,200 x 2/3 = $800
Total Monthly Social Security: $800 – $800 = No benefit
(Note: If there is no Social Security benefit, the surviving spouse also could be required to pay more for Medicare Part B.)
Even in cases where a total offset has not occurred, any increase in the teacher’s pension results in a recalculation of the offset, reducing the Social Security benefit. The GPO penalizes the public worker, such as a teacher, not the spouse. If the retired teacher has a survivor’s benefit on his/her pension, the spouse receives that full amount plus any Social Security to which either party is initially eligible.
The Formula
The GPO deprives retired educators of their spousal and survivor benefits under Social Security. Typically spouses of Social Security recipients receive half of the amount of their partner’s benefit if they do not qualify for Social Security on their own. Under the GPO, that amount is reduced by twothirds
of the amount of a CalSTRS pension.
For example: John collects a Social Security benefit of $800 a month. His wife Mary is a retired school teacher drawing a CalSTRS pension of $1,200 a month.
Effect of GPO With Living Spouse
Mary’s Potential Social Security: $800 x 1/2 = $400
CalSTRS Pension Calculated for GPO: $1,200 x 2/3 = $800
Total Monthly Social Security: $400 – $800 = No benefit
Effect of GPO Upon Death
Mary’s Social Security Survivor (Death) Benefit: $800
CalSTRS Pension Calculated for GPO: $1,200 x 2/3 = $800
Total Monthly Social Security: $800 – $800 = No benefit
(Note: If there is no Social Security benefit, the surviving spouse also could be required to pay more for Medicare Part B.)
Even in cases where a total offset has not occurred, any increase in the teacher’s pension results in a recalculation of the offset, reducing the Social Security benefit. The GPO penalizes the public worker, such as a teacher, not the spouse. If the retired teacher has a survivor’s benefit on his/her pension, the spouse receives that full amount plus any Social Security to which either party is initially eligible.
I am a teacher paying in to cal strs and will hopefully work for another 12 yrs to receive my best retirement. However teaching is my 2nd career. i also worked for 12 yrs prior to teaching and paid into SSI. It sounds like the $ I paid in to SSI will now be pirated from me by the craziest pirates of them all- politicians who will retire with 80% of their working salaries. It sounds to me like our public servants who make the rules are the true beneficiaries.
ReplyDeleteI am a retired high school counselor. My husband was ill for close to twenty years. He passed away in 2012. Due to his prolonged illness, he had no income the last four years of his life. Thankfully, I was able to keep us afloat, however he felt very badly about not being able to contribute those last years. Shortly before he died, we discussed finances and he went to his death believing I would continue to receive his social security benefit. I was absolutely shocked to learn that I would not receive it upon retirement. I worked an extra five years so that I could generate more income. I am happy he went to his death believing I would have additional funds that he had earned by working so hard when he was still able. He too would have been shocked and dismayed that I receive none of his benefit. Please repeal this unjust law that affects so many teachers in only fifteen states. This appears to be discriminatory to those of us affected.
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