It is a myth that seems to never die and one that persistently causes angst among Social Security beneficiaries – that, over the years, politicians have stolen money from Social Security. Especially in our current times, with much media attention given to Social Security’s looming financial issues, accusations of Congressional squandering of Social Security’s money fly wildly across the internet. Such missives usually suggest a simple solution to Social Security’s financial woes – make Congress repay the money they stole. But here’s the problem with that: no money has ever been stolen from Social Security by any politician, Congressperson or President. All Social Security money ever collected since workers started contributing to the program in 1937 is accounted for and has been used for one purpose only – paying benefits to those eligible and operating the federal agency tasked with doing so, as explained in this Encore Edition of a previous Ask Rusty article. If you prefer to listen to the Ask Rusty Encore Edition, click here.
Rusty, I’m in my late 70’s, my lady friend may become my wife soon, but one question I have is with my S.S. check that I receive monthly, after my passing, will she receive the full benefit that I was receiving before my passing? She was a school teacher for 33 years and receives a retirement from that organization ? Will her surviving spouse benefits be reduced because of her teachers benefits. We leave in the state of Ohio with win fall taxes.
Larry,
From what you’ve shared, it appears that your soon-to-be wife is now receiving a teacher’s pension from the State of Ohio, which exempts employees from contributing to the federal Social Security program. Her OH pension is, therefore, a “non-covered pension” earned without contributing to Social Security. Because of her OH pension, any survivor benefit your wife would normally be entitled to from you will be affected by a provision called the Government Pension Offset (GPO). The GPO will reduce any Social Security survivor benefit from you by 2/3rds of the amount of your wife’s OH teacher’s pension. Depending on the amount of her OH pension and the benefit you are receiving at your death, the GPO will either drastically reduce your wife’s surviving spouse benefit, or completely eliminate it. I’ve previously published articles on the GPO, one of which you can read at this link:
https://socialsecurityreport.org/ask-rusty-my-state-pension-eliminated-my-social-security-survivor-benefit/
As you can imagine, the GPO is very unpopular among retirees in the 26 U.S. states which have chosen to exempt some State employees from contributing to Social Security. Nevertheless, the provision, which became law in 1983, has withstood many legal challenges, as well as numerous aborted Congressional attempts to repeal it, so it is not likely to go away. Essentially, unless your SS benefit at your death is more than 2/3rds of your wife’s OH state pension, your new wife won’t be eligible for a Social Security survivor benefit from you.
Larry, I hope this answers your question, and please don’t hesitate to contact us again at [email protected], or 1.888.750.2622 if you have any further questions.
Russell Gloor
National Social Security Advisor
The AMAC Foundation