Can individuals who have their Social Security spouse's or surviving spouse's benefits reduced/eliminated by the Government Pension Offset (GPO) also have their retired worker's benefits reduced by the WEP?

Yes. Many individuals whose spouse's or surviving spouse's benefits are affected by the Government Pension Offset (GPO) have earned sufficient coverage under Social Security to qualify for a retired worker's benefit on their own record.

Because they are receiving a pension based on noncovered employment, the Social Security worker's benefit they receive on their own record is likely subject to the reduction under the Windfall Elimination Provision (WEP).

If a person is subject to both WEP and GPO, the calculations are done in the following order:

1. The retired or disabled worker's benefit is computed under the WEP benefit formula.

2. The "potential" benefit as a spouse or surviving spouse is determined based on the other spouse's work record.

3. The dual-entitlement provision is applied; under this provision, the "potential" benefit as a spouse or surviving spouse is reduced by the amount of the person's own retirement or disability benefit.

4. The remaining benefit as a spouse or surviving spouse (if any) is subject to the GPO provision. Under this provision, the spouse's or surviving spouse's benefit is reduced by two-thirds of the amount of the person's own pension from noncovered employment.

Example:

Consider a widow who is insured for Social Security benefits based on her own work, is entitled to a retirement benefit of $300 on her own record, and is entitled to a "potential" benefit of $1,000 on her deceased husband's record. Assume she receives a government pension of $600 from noncovered employment.

$1,000 Potential widow's benefit
- 300 Retirement benefit =
700 Remaining widow's benefit before GPO reduction

$600 pension multiplied by .6666 equals $400 (amount of offset)

$700 Remaining widow's benefit before GPO reduction
- 400 GPO reduction =
 300 Widow's benefit payable

This person would receive a $300 retired worker's benefit and a $300 widow's benefit from Social Security, plus a $600 pension, for a total of $1,200.