The GPO applies to spouses eligible for about one-half of their spouse's Social Security (or all, in the case of a widow/ widower), because the spouse has a higher (or the only) Social Security.
On March 2, 2004, President Bush signed into law HR 743 changing the Government Pension Offset (GPO) exemption, also known as the "One day loophole" from one-day to a five year requirement. Now to get your spouse's Social Security, you will need to work five years in a dual district (one that takes out Social Security and TRS) rather than one day to qualify for your share of your spouse's Social Security. For transition legislation for some educators see: www.ssa.gov or call 800.772.1213 and ask for a GPO specialist.
Some educators have worked at other jobs or careers, either before becoming TRS members or as second jobs. Some of you will return to such employment or self-employment after you retire. Some questions frequently asked concerning the other offset of Social Security and about Medicare are answered here.
If you have the minimum 40 credits on your own record, the WEA offset1 allows you to receive a partial Social Security benefit with your full TRS benefit. An offset will be deducted from the Social Security benefits that are currently stated in your Social Security statement.
The general rule of thumb to use for anyone with Social Security credits from a job outside TRS is a maximum offset of $200-$300 per month. When receiving your Social Security statement, you can simply deduct $250 per month from the amount Social Security shows as the amount you can expect to receive at retirement and you will be close. It is the amount of credits that determine the offset, while your stated Social Security benefit depends on the wages received over your working lifetime less the offset. For example: Thirty years or 120 credits have no offset while 80-100 credits may have a $180.00 offset and those with just above 40 quarters have the maximum $300.00 offset.
If you pay into Medicare for 10 years or more, you are eligible for Medicare, which works alongside TRS care at your age 65, thereby lowering your TRS care premium substantially at that time. If you can use your spouse's Social Security/Medicare record, you are also eligible for Medicare even if you do not get their Social Security.Medicare is also available at a higher cost if you do not ordinarily qualify and may be best if you no longer reside in Texas, as TRS Care does not work well with out-of-sate providers. Call Social Security at 800.950.1829 as many educators can qualify.
In addition to contacting your Congressman @ (www.house.gov) and our Senators @ (www.senate.gov), you may also wish to call or email the White House (www.whitehouse.gov) concerning their abandonment of benefits to Texas educators. Also, please contact us at EFS Financial anytime for updates on social security laws see ssa.gov. Also, call for personal financial advice for your retirement.
Please also see your legal and tax advisor or call the offices of Jay A. Finn, CPA, LLC
1 Source: Forms provided on www.ssa.gov.
*PlanMember Securities Corporation, EFS Financial and this representative are not affiliated with or employed by the Social Security Administration. This information represents a general overview of certain rules related to Social Security and the ideas presented are not individualized for your particular situation. This information is based on current law, which can be changed at any time. Source: ssa.gov and trs.state.tx.us. The above link(s) are provided for your information only. PSEC and EFS Financial does not endorse, nor accept any responsibility for the content, productions and/or services provided at non PSEC or EFS Financial sites. Some information contained on these site(s) are provided by third parties, we do not independently verify this information, nor do we guarantee its accuracy or completeness.
If you are entirely in a school district (about 16 of them) that deducts Social Security from your pay (Austin, Port Arthur and Fort Davis ISD are some examples), then you are eligible for Social Security and Medicare in your own right and have "conquered" the Windfall Elimination Act (WEA) offset.
