Understanding How CalSTRS and Government Pensions Affect Social Security Benefits

One of our Social Security seminar attendees says she’s been told that her own Social Security benefit amount (from her own work record) will be reduced by half because her husband gets a pension from CalSTRS (teacher pension) due to Government Pension Offset rules (GPO).  It doesn’t seem reasonable that her own benefit would be reduced just because her husband gets a pension.

That is completely wrong. Her own retirement benefit is in no way connected to her husband’s work history.  His CalSERS will only affect him. If he dies first and she receives a survivor pension from CalSTRS, GPO will not apply as she did not work for the government. Thus, she is not subject to WEP or GPO. 

Her own Social Security benefit, based on her work record, is not affected by her husband's CalSTRS (California State Teachers' Retirement System) pension due to Government Pension Offset (GPO) rules. Here’s why:

1. No Impact on Her Own Social Security Benefits:

   • Individual Work Records: Social Security benefits based on an individual’s own work history are completely independent of their spouse’s work history or pension. In this case, her Social Security benefit will not be reduced just because her husband receives a pension from CalSTRS. The GPO affects spousal or survivor benefits, not an individual’s own retirement benefit.

2. CalSTRS Pension and GPO:

   • GPO’s Limited Scope: The Government Pension Offset (GPO) rule applies to spousal and survivor Social Security benefits if the spouse worked for a government job that did not pay into Social Security. However, GPO does not apply to her own retirement benefits. Therefore, her Social Security payments will not be reduced due to her husband's pension.
   • Survivor Benefits Consideration: If her husband were to pass away first, and she became eligible to receive a survivor pension from CalSTRS, GPO still would not apply to her Social Security benefits because she did not work in a government job covered by the GPO. Additionally, she is not subject to the Windfall Elimination Provision (WEP) either.

3. Reassurance for Your Attendee:

   • No Reduction in Benefits: It’s important to reassure your seminar attendee that her own Social Security benefits will remain unaffected by her husband’s pension. The misinformation she received likely stems from a misunderstanding of the GPO rules, which only impact specific spousal and survivor benefits under certain conditions.

In summary, your seminar attendee's Social Security retirement benefit is entirely separate from her husband's CalSTRS pension and will not be reduced because of it. GPO and WEP do not apply to her own benefits, so she can rest assured that her Social Security payments will remain intact. If further clarification is needed, feel free to reach out!

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.