Canadian Citizen’s Eligibility for U.S. Spousal Benefits

We have a client couple who lived in Canada for several years and then moved to the US and have been living here for the last 10 years. The wife is a Canadian citizen with Canadian work history and Canadian Social Security benefits. She is working in the US and plans to work to get a 10-year work history. The husband is a US citizen and worked in the US while he lived in Canada and continues to work in the US. The husband’s FRA is 67 and the benefit estimate is $3,592. Her Canadian benefit is $558 at age 60 and $1,237 at age 70. Is she still eligible for ½ of the husband’s US SS benefits at her FRA after he files along with collecting her Canadian SS benefits?

While the wife’s retirement benefit will be subject to WEP and will be reduced, the spousal benefit is not subject to GPO so she can collect as a spouse along with her Canadian benefit. Here’s how it works:

1. Eligibility for U.S. Spousal Benefits:

   • Spousal Benefit at FRA: Once the husband files for his U.S. Social Security benefits, the wife will be eligible to receive a spousal benefit. This spousal benefit is typically 50% of the husband’s Primary Insurance Amount (PIA) at her Full Retirement Age (FRA).

2. Impact of Canadian Benefits:

   • WEP Impact: While the wife’s own U.S. Social Security retirement benefit may be subject to the Windfall Elimination Provision (WEP) due to her Canadian Social Security benefits, the spousal benefit is not subject to WEP. This means that her spousal benefit will not be reduced by her Canadian benefits.
   • GPO Exemption: Importantly, the spousal benefit is also not subject to the Government Pension Offset (GPO), so she can collect the spousal benefit along with her Canadian Social Security benefits without any reduction.

3. Strategy for Maximizing Benefits:

   • Timing Considerations: The wife can strategically choose when to claim her Canadian benefits and U.S. spousal benefits to maximize her overall income. She can collect her Canadian benefits as early as age 60 or delay them until age 70 for a higher amount, while also planning to claim her U.S. spousal benefits at her FRA.

In summary, despite the WEP affecting her own U.S. retirement benefit, your client can still collect U.S. spousal benefits without any reduction due to her Canadian Social Security benefits. She will receive half of her husband’s U.S. benefit at her FRA in addition to her Canadian benefits, offering her a well-rounded retirement income strategy.

The content on this blog is for informational purposes only and is not legal, financial, or professional advice. Social Security rules change periodically, so some information may become outdated. For the most accurate advice, consult a certified National Social Security Advisor (NSSA®). Social Security Professionals, LLC, and NSSA® are not responsible for any errors, omissions, or actions taken based on this blog's content. Use of this blog does not create a client relationship, and all information is provided "as is" without guarantees. By using this blog, you agree to hold Social Security Professionals, LLC, and NSSA® harmless from any claims or liabilities arising from its content. For personalized guidance, contact an NSSA® professional.