You’ve Earned Social Security—But This Little-Known Rule Can Slash It for Government Employees

Key Takeaways

• If you worked in a government job not covered by Social Security, your Social Security benefits may be reduced under a rule still in effect in 2025.

• Understanding how this rule works and whether you qualify for an exception can help protect your retirement income.

What Is This Rule—and Why It Still Matters in 2025

If you’ve spent your career in public service, especially in a position not covered by Social Security, your retirement strategy likely includes a pension. But what many government employees don’t realize until they apply for Social Security is that their benefit might be slashed because of a regulation called the Government Pension Offset (GPO). Even with the 2025 repeal of the Windfall Elimination Provision (WEP), the GPO rule still stands.

This matters for one key reason: it affects your eligibility to collect Social Security benefits on a spouse’s record. And in many cases, it cuts those benefits dramatically or eliminates them altogether.

Who the GPO Affects

The Government Pension Offset applies if:

• You receive a pension from work not covered by Social Security (for example, from certain state, local, or federal jobs).

• You’re eligible for Social Security benefits as a spouse, widow, or widower.

Unlike WEP, which reduced your own earned benefits, GPO targets benefits you’d receive based on someone else’s work history. This includes spousal and survivor benefits.

How the Offset Works

The GPO doesn’t reduce your entire Social Security amount—it applies only to the spousal or survivor portion. But the formula it uses can significantly reduce or wipe out your benefit: Two-thirds of your non-covered pension is subtracted from your Social Security spousal or survivor benefit.

Example: If your monthly pension from non-Social Security-covered work is $3,000, then two-thirds of that is $2,000. If your spousal benefit under Social Security is $1,800, it’s eliminated entirely because $2,000 offsets the full amount.

The result? You get your pension, but nothing from Social Security.

The Rule’s Origins

The GPO was passed in 1977 and implemented in 1983. The intention was to prevent what lawmakers viewed as “double dipping”—receiving both a government pension and full Social Security spousal benefits. But in practice, it disproportionately affects public servants who paid into pension systems instead of Social Security.

Even with ongoing reforms to improve fairness in public retirement systems, GPO has not been repealed as of 2025.

How GPO Compares to the Repealed WEP

As of January 2025, the Windfall Elimination Provision no longer affects government retirees. This repeal restored full earned Social Security benefits to thousands of affected workers. However, the GPO is still law, which means:

• You may now receive your full earned benefit under your own work record.

• But you may still lose spousal or survivor benefits if you’re drawing a government pension from non-Social Security work.

This creates a confusing gap in understanding for many retirees. Just because WEP is gone doesn’t mean you’re in the clear.

Who Is Exempt From GPO

Fortunately, not everyone is subject to this rule. You may be exempt if:

• You were eligible for your government pension before December 1, 1982, and met all requirements for spousal benefits in effect at that time.

• You were employed in your last 60 months in a job covered by both the pension system and Social Security.

• Your pension is from a foreign government and does not count as a U.S. government pension.

These exceptions are narrow and specific. Most affected retirees don’t qualify.

What You Can Do to Reduce or Avoid GPO Impact

If you haven’t retired yet, or if you’re still evaluating your Social Security options, there are some proactive steps you can take:

1. Understand the 60-Month Rule

If your last five years of government employment were covered by Social Security, you may avoid GPO. This often means switching to a position where Social Security taxes are withheld before retiring.

Make sure your personnel records and earnings history clearly reflect your Social Security-covered employment for this period.

2. Review Your Social Security Earnings Record

Use your personal account at SSA.gov to check if your years of work included enough earnings under Social Security to qualify for retirement benefits. If you qualify under your own record, the GPO doesn’t apply.

You’ll need at least 40 quarters (10 years) of Social Security-covered employment to claim a retirement benefit under your own record.

3. Delay Claiming Survivor Benefits

If your spouse passes away and you are eligible for both a government pension and a survivor benefit, consider delaying your Social Security claim. Survivor benefits can grow based on your age, and careful timing may help you retain more income overall.

This does not remove the GPO, but it may change the numbers enough to make a partial benefit available.

4. Get Professional Help With GPO Calculations

The Social Security formula for GPO isn’t always straightforward, especially when combined with phased retirement, partial coverage, or multiple pensions. A licensed professional listed on this website can help calculate your expected offset and recommend ways to structure your benefits.

Why This Catches So Many Off Guard

Many public employees assume that their years of service and eligibility for a pension guarantee full spousal benefits under Social Security. But the truth is, if your earnings didn’t contribute to Social Security, the system doesn’t treat you the same.

This disconnect typically surfaces late in the planning process—often when you apply for benefits—leaving limited time to course-correct.

What’s more, GPO is not well-publicized. It doesn’t affect everyone, so you won’t find much in your annual Social Security statement if you’re not already drawing a pension. Yet the financial impact can be severe.

What About CSRS Retirees?

If you’re a retired government employee under the Civil Service Retirement System (CSRS), you are highly likely to be affected by GPO. Most CSRS employment was not covered by Social Security, and unless you meet one of the narrow exemptions, your spousal or survivor benefits will be offset.

Even if you later worked in a FERS-covered position, the determining factor is your last 60 months of employment. If they were under CSRS and not covered by Social Security, GPO applies.

Planning Ahead in 2025 and Beyond

With WEP repealed, some retirees are understandably hopeful about broader reform. There’s continued pressure in Congress to repeal or modify GPO as well. But as of mid-2025, no legislation has passed to eliminate the rule.

Given the uncertainty of future reforms, you need to plan based on current law. Here’s what that means:

• Do not assume spousal or survivor benefits will be fully available.

• Calculate your potential benefit with the offset applied.

• Consider switching to a Social Security-covered position if retirement is still a few years away.

• Maintain complete records of all employment, pension eligibility, and tax withholding.

Don’t Let a Surprise Rule Shrink Your Retirement

You’ve spent a career serving the public, and you’ve earned every dollar of retirement income coming your way. But the Government Pension Offset can silently undercut your Social Security expectations unless you prepare for it.

Don’t wait until the day you file to discover the shortfall. The more proactive you are now, the better chance you’ll have to preserve every benefit you’ve earned.

To make sense of your options and protect your income, speak with a licensed professional listed on this website for guidance tailored to your specific circumstances.