Social Security: The Government Pension Offset (GPO)

A worker is "covered" by Social Security if he or she pays into Social Security through the Old-Age, Survivors, and Disability Insurance (OASDI) payroll tax for 10 years (40 quarters).Currently, 96% of all workers are covered by Social Security.The majority of non-covered positions are held by federal, state, and local government employees.The Government Pension Offset (GPO) applies to Social Security spousal benefits, which are generally payable to the spouses of retired, disabled, or deceased workers covered by Social Security.The Social Security spousal benefit is equal to 50% of the retired or disabled worker's benefit and 100% of the deceased worker's benefit.Social Security spousal benefits were established in the 1930s to help support wives who are financially dependent on their husbands.It has since become more common for both spouses in a couple to work, with the result that, in more cases, both members of a couple are entitled to Social Security or other government pensions based on their own work records.Social Security generally does not provide both full worker and full spousal benefits to the same individual.Similarly, in the case of a couple where both members work, Social Security does not provide two full worker benefits and two full spousal benefits to the couple.Two provisions are designed to reduce the Social Security spousal benefits of individuals who are not financially dependent on their spouses because they receive benefits based on their own work records.These are