Occasionally we will have former government employees and potential clients who inquire with our office about their eligibility for Social Security disability benefits. Most of these people are not aware of how government pensions can impact Social Security benefits and some people are crestfallen when they learn they are not eligible for Social Security Disability Insurance (SSDI) or are miffed to learn they are only eligible for a reduced amount because the were not paying Social Security taxes.
Many government jobs have their own pensions and retirement programs where the employee will be paying into those programs bypassing Social Security taxes.
The hard truth to swallow for these people is if you don’t pay Social Security taxes you will not be eligible for the SSDI program on your own record’s earnings.
In addition, even if you may meet certain requirements to qualify Social Security benefits based on a spouse’s record, you are not in the clear either. Social Security offers surviving spousal benefits to widows or widowers who are at least age 50 and found to be disabled. These benefits come from the deceased spouse’s earning’s record. A surviving spouse who is not disabled is eligible to collect benefits on their deceased spouse’s record beginning at age 62. In both these cases, any benefits the spouse may be eligible for can be reduced if the surviving spouse receives a government pension.
This provision is known as the Government Pension Offset (GPO).
To determine if you are eligible for any future spousal Social Security benefits you will need to know what your “gross” (before taxes) monthly pension is and seek an estimate of what your monthly spousal benefits would be from Social Security. The general rule regarding GPO is that two-thirds of your eligible monthly Social Security amount would be reduced.
To learn more about the GPO issue click here.
