If you receive a retirement or disability pension from a government job where you did not pay Social Security taxes, your Social Security spouse's or widow's/widower's benefits may be reduced. Two-thirds of your government pension amount will be deducted from your Social Security benefits.
For example, if your monthly government pension is $600, $400 (two-thirds) will be subtracted from your Social Security benefits. If your Social Security spouse's or widow's/widower's benefit is $500, you will receive $100 from Social Security ($500 - $400 = $100). If two-thirds of your government pension is higher than your Social Security benefit, your benefit could be reduced to zero.
This reduction is due to the Government Pension Offset law, which ensures that government employees who did not pay Social Security taxes have their benefits calculated in the same way as workers in the private sector who did pay Social Security taxes.
There are exceptions where your Social Security benefits won't be reduced, such as if you receive a government pension not based on your earnings or if you are a federal, state, or local government employee and your pension is from a job for which you paid Social Security taxes. There are specific conditions related to your last day of employment, the filing date for benefits, and the payment of Social Security taxes during the last 60 months of government service.
Last Reviewed: July 6, 2023