Why the 2/3 GPO Offset Might Affect Your Survivor Benefits with a PERS Pension

I have a lady who lost her husband in February this year.  She is on PERS, so she has a non-taxed pension.  Here are the numbers:  Survivor DOB 12/23/1943  Husband DOB 07/13/1937  Husband Date of Death 2/4/2024  She receives $1,296/month from PERS  His SS income was $1,580/month  Seems to me that, after the 2/3 GPO offset, which would be $864, she should be entitled to around $700/month off her husband’s benefits.  But SS is telling her she gets nothing.  Anything I am missing on this?

Your assessment seems accurate based on the numbers provided, so it’s unclear why Social Security Administration (SSA) would be telling her she is not entitled to any survivor benefits. Let’s break down the situation to see if we can identify any potential issues.

Breakdown of the Survivor Benefit Calculation:

1. Government Pension Offset (GPO): The GPO reduces Social Security survivor benefits by two-thirds of the amount of the government pension received from non-Social Security-covered employment. In this case, two-thirds of her PERS pension ($1,296) would be $864.

2. Survivor Benefit Calculation:

   • Husband’s Social Security Benefit: $1,580/month
   • GPO Reduction: $864/month
   • Potential Survivor Benefit: $1,580 - $864 = $716/month

   Based on these calculations, she should indeed be entitled to around $700 per month from her husband's Social Security, after the GPO reduction.

Possible Reasons for Denial:

1. Own Social Security Benefit: If she is receiving her own Social Security retirement benefit, and it is higher than the reduced survivor benefit, then SSA would only pay the higher of the two, which might explain why she’s being told she is not eligible for additional survivor benefits.

2. Record Miscommunication or Error: There may have been a mistake or miscommunication at the SSA’s end. It's possible that SSA might not have correctly applied the GPO reduction or miscalculated the benefits.

Next Steps:

1. Contact SSA: She should contact the SSA again, preferably in person or through a scheduled phone appointment, and ask for a detailed explanation of the decision. She should request that they clarify the specific reasons why she is not receiving any survivor benefits.

2. Request a Reconsideration: If the explanation provided by SSA still doesn’t make sense based on the calculations, she can request a reconsideration of the decision by filing a form SSA-561 (Request for Reconsideration).

3. Bring Documentation: When contacting SSA, it’s helpful to bring or provide any relevant documentation, including details of her PERS pension, her late husband's Social Security benefits, and her own Social Security records if applicable.

There appears to be a disconnect between the calculations and what SSA is telling her. It’s crucial for her to follow up with SSA and possibly escalate the matter to ensure she receives the benefits she’s entitled to.

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