USADragon

A few months ago, I learned about WEP and thought that was bad enough. Then I recently discovered GPO. I qualify for US SS based on my husband's earnings (I have some of my own but they're paltry by comparison). I know that his will be WEP'd and I think we've identified which pensions will affect that calculation. We were merrily budgeting away, thinking (foolishly it seems), that I would qualify for 50% of his SS before the WEP calculation. Am I right in understanding that my 50% SS will be slashed by 60% of my UK state and SERPS pensions? Is there any way to reduce this (in a similar way to the 30 year rule for WEP?) This is horrible, and retirement is looking more and more gloomy. I'm going to be one of those "I can't afford that, I'm on a fixed income" people.

Glasgow Girl

I think you will get 50% of your husbands WEP reduced pension. In other words WEP will be applied to his calculation and you will get 50% of that amount, with no further reduction unless you collected prior to your full retirement age in which case it would be reduced further to accommodate the fact that you are taking SS early. Remember the WEP reduction is limited to 50% of the first $1,024 of foreign pension per month for 2022. So $512 per month is the maximum they can WEP your husband social security.

USADragon

I thought for sure that the WEP only affected his SS, and that mine was calculated at 50% prior to the WEP calculation. I found this on "maximize my social security"WEP (Windfall Elimination Provision) only affects the Social Security benefits payable on your own record, so it won't have any effect on your potential spousal benefits. However, if you receive a government pension based on work that was exempt from Social Security taxes, the Government Pension Offset (GPO) provision may reduce or eliminate your spousal benefits.

When GPO applies, a person's Social Security spousal benefits are reduced by 2/3rds of the amount of their government pension. The 2/3rds offset doesn't start until the person becomes entitled to the government pension, though. For more information on GPO, refer to the following pamphlet: https://www.ssa.gov/pubs/EN-05-10007.pdf.
Either way, it's a big hit.

leuler

Foreign pensions do not trigger GPO.

As Glasgow Girl mentioned above, WEP is not applied on spousal benefits.

On https://secure.ssa.gov/poms.nsf/lnx/0202608100 - is the following "NOTE: Foreign pensions are not considered pensions for GPO purposes. For more payments not considered pensions for GPO purposes, see GN 02608.400B.:

S Folinsky

I can pass on my experience with WEP. My spouse has both a gov’t pension and sufficient quarters previous for SS benefits. When she reached full retirement age, she continued to work for government so she was able to start drawing SS benefits without WEP. Once she retired and started drawing pension WEP cranked in. In the meanwhile, I used a strategy which is no longer allowed (I got in under the wire) - I applied for my SS benefit but deferred until I was 70. Thus I was able to draw spousal benefit. While spouse continued to work, no WEP reduction on my benefit. Once she started drawing gov’t pension, WEP applied to BOTH our benefits. When I reached 70, I stopped drawing spousal benefit in order to draw my own benefit. No WEP on my benefits. So WEP, only applied to her benefits. (Again, what I did is no longer allowed - choice of own benefit or spousal benefit is a one time election).

lansbury

I get my SS based on the contributions made by my wife. She lived in the UK for a while and so has UK pensions which were taken into account when her SS was calculated. In other words her SS is subject to WEP.

I also have pensions from the UK, both job and State. My SS is 50% of the amount my wife got after WEP was applied to her pension. My SS was NOT subject to WEP.

One other fact to note. My wife took her SS at 65, so it was reduced slightly from the full amount she would have got at 66. I was 67 and my SS was 50% of the amount she would have received had she been 66.

USADragon

Thank you all for your most helpful replies. I couldn't originally see the info regarding GPO and foreign pensions so that was a big relief!