McCROSKY’S UNDERSTANDING of
GOVERNMENTAL PENSION OFFSET (GPO) vs. DUAL ENTITLEMENT
Both provisions result in a reduction of a Social Security Spousal benefits. GPO
established to provide similar provisions to Dual Entitlement.
Dual Entitlement Example:
Spouses A & B
Spouse A
Spouse B
$2000/mo SS
$2000/mo SS
Spouses A & B eligible to receive 50%
of each other SS payment.
Thus 50% of $2000 = $1000
Dual Entitlement provisions reduce the payment
$1000
-$2000
$0
Less 100% of own SS
Spouse A Dies
Spouse B eligible for 100% of A’s SS
Dual Entitlement provisions reduce the payment
$2000
-$2000
$0
Less 100% of own SS
Net results Spouses A or B collect only $2000/mo
John McCrosky
Page 1 of 4
3/29/08-UIC
CONTINUATION GPO vs. DUAL ENTITLEMENT
Spouses C and D
Spouse C
Spouse D
$2000/mo SS
$2000/mo SURS
Spouse D eligible to receive 50%
of Spouse’s C SS. Thus 50% of
$2000 = $1000.
GPO provisions reduce the payment
$1000
-$1340
$0
Less 2/3 of SURS
Spouse C Dies
Spouse D eligible for 100% of C’s SS
GPO provisions
$2000
-$1340
$660
Less 2/3 of SURS
Net result at death of Spouse C; Spouse D collects $2660
If spouse D dies first then Spouse C collects their full SS plus
any SURS survivor benefit.
For more detail visit www.socialsecurity.gov/pubs/10007.html
John McCrosky
Page 2 of 4
3/29/08-UIC
McCROSKY’S UNDERSTANDING of
WINDFALL ELIMINATION PROVISIONS—WEP
Potentially reduced formula applied to a SS benefit if eligible for
a governmental pension from a non-covered employer such as UIC.
How is a SS benefit calculated?
1. Determination of A.I.M.E. (average indexed monthly earnings), i.e., 35
highest years of earnings indexed to a CPI and totaled. Total is
divided by 420 (35 yrs x 12) to obtain AIME.
2. AIME is divided into 3 bend points and percentage applied.
$0 to $761
$762 - $4586
$4587 & >
90%
32%
15%
3. 90% factor reduced if less than 30 years of substantial earnings
29 years
28 years
27 years
26 years
25 years
24 years
23 years
22 years
21 years
< 21 years
85%
80%
75%
70%
65%
60%
55%
50%
45%
40%
For more detail visit:
www.socialsecurity.gov/pubs/10045.html
(the why and how)
www.socialsecurity.gov/retire2/wep-chart.htm (to calculate the reduction)
John McCrosky
Page 3 of 4
3/29/08-UIC
John McCrosky
Page 4 of 4
3/29/08-UIC