How WEP and GPO affect your Social Security benefits

Q:  I am 50 and my same-sex spouse is 74. We were married in Canada in 2005 and California in 2008. My same-sex spouse retired from the U.S. government in 2001 after 32 years, where he was under the Civil Service Retirement System (CSRS). 

When the Windsor decision was handed down in 2013, my spouse was given the option to put me on a 55% survivor annuity, which we did. I have worked 32 years in the private sector, and have never worked for any government entity; all of my earnings have been under Social Security. My question: Will my future Social Security benefits be reduced in any way by my same-sex spouse’s survivor annuity under CSRS? I have read conflicting information on this. My 32 years of Social Security earnings have about 20 years at maximum pay and the other 12 years were college jobs, student jobs and such. When we call U.S. Office of Personnel Management we get a different answer based on who we talk to and no one will go on record and answer the question. John Kovacs, Denver, Colo.

A: So let’s start here. The Windfall Elimination Provision (WEP) may affect how the Social Security Administration (SSA) calculates your Social Security retirement benefit if you work for an employer who does not withhold Social Security taxes from your salary, such as a government agency, i.e. civilians who work for the federal government covered by CSRS, says BJ Jarrett, a public affairs specialist at the SSA in Baltimore. “Any pension you get from that work may reduce your Social Security benefits. WEP can also affect workers who worked for an employer in another country, Canada for instance, that did not withhold Social Security taxes,” he says.

The Government Pension Offset (GPO), on the other hand, affects Social Security spouses and widow/widowers benefits if you receive a pension from a federal, state, or local government based on work for which you didn’t pay Social Security taxes, says Jarrett. “We may reduce your Social Security spouses or widows/widowers benefits,” he says.

So, in your case, Jarrett says the spouse with 32 years of Social Security coverage and no non-covered or government earnings would probably not be affected by WEP or GPO, but you’ll need to check the Canadian employment.

“However, the spouse with the CSRS pension would likely be affected by WEP when he applies for his own Social Security benefit, if he had enough Social credits, and GPO if he applies for Social Security spousal benefits,” says Jarrett. “There is where the confusion probably lies.”

Here are SSA’s fact sheets for each provision: Windfall Elimination Provision and Government Pension Offset.

Robert Powell is editor of Retirement Weekly, contributes regularly to Paste BN, The Wall Street Journal and MarketWatch. Got questions about money? Email rpowell@allthingsretirement.com .