Ask Terry Questions Social Security Government Pension Offset

Social Security Government Pension Offset

By Terry Savage on November 14, 2023 | Wild Card

My wife worked 14 years at a job paying Social Security taxes. She quit working when our children were born. When they become older she went to work part time as a clerical worker at a local community college for 10 years. As a result of working at the college she receives a $300 per month SURS pension benefit. We are in our 70’s and both receive Social Security. Her Social Security benefit is based on her 14 years of paying into the system.
Is she subject to the GPO which will deduct 2/3rd’s of her pension from her Social Security payment?
She retired in 2018. Every year she has sent a letter to the SS office in Joliet, Illinois stating what her pension is because it increases by 3% each year yet there hasn’t been a reduction in her Social Security payments over these years.
After watching you on 20 Minutes we researched her payments from Social Security. Since they have not reduced her SS payment by roughly $200 each month since 2018 we calculate we could owe $13,000 to SS if she is subject to the SS GPO.
Is she subject to the reduction? Thank you.

Terry Says

Yes. She is potentially subject to the offset. And when they get around to her, they will likely write up a clawback letter. The best advice I can give you is to start saving to repay them — because when it comes, they will demand repayment within 30 days or stop her benefits entirely. That means she will have to find anotehr way to pay for Medicare Part B.

And, in case you are asking why they created this mess. They don’t keep track because they never receive a copy of her pension 1099 from the IRS. They don’t track your mail, so send it registered, certified — and keep a copy of it — so you can prove you tried to be honest about it. It won’t do you any good in the long run, because this is just another example of Social Security Horror Stories. Please check out our new website



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