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Texas school retirees who already are subject to reduced spousal Social Security benefits because of the Government Pension Offset (GPO) were shocked to learn earlier this year that their spousal benefits would be slightly reduced again because of the 13th check that was paid in January.
The GPO calculation is based on the amount of the TRS annuity, so the higher a retiree’s TRS check, the higher the reduction in Social Security spousal benefits. However, it was not anticipated that a one-time bonus would affect the calculation.
The Social Security Administration treated the one-time bonus as though it were a permanent increase in TRS benefits, and applied an additional reduction (prorated over the anticipated lifetime of the retiree) to the spousal Social Security checks.
The Texas Congressional delegation responded quickly, asking Social Security Commissioner Michael Astrue for an explanation of the action and for examples of all similar situations in which a one-time bonus check was treated as a permanent benefit enhancement subject to the GPO.
Commissioner Astrue responded without addressing the second question on precedents to the lawmakers’ satisfaction; our supportive Congressional representatives have sent another letter (LINK to letter) asking again for that information, and TCTA will keep you updated on additional communications or actions.
Web posted: 06/05/08
