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View Winners → Smart Women Smart Money: Spousal Benefit
Arcadia Weekly Dec 31, 2014
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Hello Emmy. My husband and I are both retired. He’s receiving Social Security. As a former teacher, my pension comes from CALPERS and I don’t receive Social Security. Am I still eligible for spousal benefits from my husband’s social security?
You are certainly eligible to apply. But I’m sorry to say, due to the Government Pension Offset (GPO) you may receive little to nothing in spousal benefits.
In broad strokes, this is how it would work: You are eligible to receive 50% of your husband’s social security income after he files for his benefits and you file for your spousal benefits. However, that Social Security spousal benefit will be reduced by two-thirds of your current CALPERS pension.
For example: if your husband receives $2,000 in monthly social security payments, you would be eligible to receive half of that – or $1,000 before your pension’s offset. Let’s say your CALPERS pension is $1,500 per month. The GPO will be two thirds of that – namely $1,000. Subtracting the Government Pension Offset from your spousal benefits in this hypothetical scenario nets you a big zero.
In some cases, Social Security benefits as a spouse, widow or widower will not be reduced if you receive a government pension that is not based on your earnings or were a government employee who did pay Social Security taxes.
You can call the Social Security office directly at 1-800-772-1213 to learn about specific rules. Though, be aware they will not help you apply those rules to your personal situation.
More information is available at socialsecurity.gov/pubs/10007.html. In order to accurately calculate your actual benefits, I must suggest a visit to a financial professional.
Happy New Year’s to all. May 2015 be even better and brighter. Please email your questions for Emmy to smartwomen@ehfinancial.com or give our office a call at 626-943-8833.
Securities and Advisory Services Offered Through NATIONAL PLANNING CORP.(NPC) Member FINRA, SIPC, a Registered Investment Adviser. EH Financial Group, Inc. and NPC are separate entities and unrelated companies
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