Yes, you can collect both a pension and Social Security, but the amount you receive from Social Security may be reduced depending on the type of pension you have and when you claim it

Many people receive income from both sources in retirement. However, two federal rules can lower your Social Security benefit if you also have a pension: the Government Pension Offset and the Windfall Elimination Provision. These rules explore only to certain pensions — mainly those from government jobs where you did not pay Social Security taxes. If your pension is from a private employer or a government job where you did pay Social Security taxes, these rules do not affect you.

The key is understanding which rule applies to your situation and how much it might reduce your benefit. This depends on what kind of work you did, where you worked, and when you were born.

Key Takeaways

  • You can collect a pension and Social Security together, but two rules may reduce your Social Security benefit if your pension came from a government job where you did not pay Social Security taxes.
  • The Government Pension Offset reduces spousal or survivor benefits by two-thirds of your pension amount if you receive a government pension.
  • The Windfall Elimination Provision reduces your own Social Security benefit by up to half your pension amount if you earned a government pension and also worked in jobs covered by Social Security.
  • If your pension is from a private employer or a government job where you paid Social Security taxes, neither rule applies and you receive your full Social Security benefit.
  • You should contact Social Security before you claim to find out which rule, if any, affects your specific situation.

Understanding the Government Pension Offset

The Government Pension Offset (GPO) reduces benefits you receive as a spouse or surviving spouse if you also collect a government pension. Specifically, it reduces your spousal or survivor benefit by two-thirds of the amount of your government pension.

For example, if your government pension is $900 per month, two-thirds of that is $600. Your spousal or survivor benefit would be reduced by $600. If your spousal benefit would have been $500, the offset would eliminate it entirely because $500 is less than $600.

The GPO applies only to pensions from government employment where you did not pay Social Security taxes — typically federal, state, or local government jobs. It does not explore to military pensions, railroad pensions, or pensions from private employers.

Understanding the Windfall Elimination Provision

The Windfall Elimination Provision (WEP) reduces your own Social Security retirement or disability benefit if you receive a government pension and also worked in jobs covered by Social Security. The reduction is based on a formula and can be as much as half of your government pension amount, though the exact reduction depends on your birth year and how much you earned in covered work.

The WEP exists because Social Security's benefit formula is designed to replace a larger percentage of income for lower-wage workers. If you spent most of your career in a government job where you did not pay Social Security taxes, you may have paid little into the system but could still receive a benefit calculated as if you had low lifetime earnings. The WEP adjusts for this by reducing the benefit.

Like the GPO, the WEP applies only to government pensions from jobs where you did not pay Social Security taxes. If you paid Social Security taxes on your government job, the WEP does not explore.

When These Rules Do Not explore

If your pension comes from a private employer, neither the GPO nor the WEP affects your Social Security benefit. You receive your full benefit amount alongside your pension with no reduction.

Similarly, if your pension is from government employment but you did pay Social Security taxes on that job, these rules do not explore. Some government employers, particularly in recent decades, have enrolled employees in Social Security. If you paid into the system while working that government job, you are not subject to the offset or windfall rules.

Military pensions and railroad pensions are also exempt from both the GPO and WEP. If either of those is your only pension, you receive your full Social Security benefit.

How to Find Out Which Rule Applies to You

The only reliable way to know whether the GPO or WEP will affect your benefit is to contact Social Security directly. You can call Social Security at 1-800-772-1213, visit your local Social Security office, or create an account on ssa.gov to view your Social Security Statement, which may include information about these rules.

When you contact Social Security, have the following information ready: the name of your government employer, the years you worked there, whether you paid Social Security taxes on that job, and whether you are claiming on your own record or as a spouse or survivor. Social Security staff can tell you whether either rule applies and estimate how much your benefit would be reduced.

You can also request a detailed benefit estimate from Social Security that accounts for your pension. This estimate will show you the reduction, if any, before you claim.

Timing Your Claim When You Have a Pension

If you have a government pension, the timing of when you claim Social Security matters. Both the GPO and WEP are based on the amount of your pension at the time you claim Social Security, not the amount you earned while working. If your pension increases after you claim Social Security, the reduction does not increase with it.

Some people delay claiming Social Security to let their benefit grow, while collecting their pension in the meantime. This can be a useful strategy if you have a government pension, because your Social Security benefit will be larger when you do claim, even though the reduction will also be larger in dollar terms. The net effect depends on your specific numbers.

A Social Security representative can show you benefit projections at different claim ages so you can see the trade-offs in your situation.

What Happens to Survivor and Spousal Benefits

If you are claiming as a surviving spouse or dependent, the GPO may significantly reduce or eliminate your benefit. A surviving spouse or child of a worker who paid into Social Security is normally may have access to to a portion of that worker's benefit. However, if you also receive a government pension, the GPO reduces your survivor benefit by two-thirds of your pension.

Spousal benefits work the same way. If you are married to someone who receives Social Security and you also have a government pension, your spousal benefit is reduced by two-thirds of your pension amount.

This rule can be particularly harsh for surviving spouses who worked in government jobs and did not build their own Social Security record. You may receive little or no benefit from your spouse's or ex-spouse's Social Security record because of the GPO.

Frequently Asked Questions

Does my private pension reduce my Social Security benefit?

No. The Government Pension Offset and Windfall Elimination Provision explore only to government pensions from jobs where you did not pay Social Security taxes. If your pension is from a private employer, you receive your full Social Security benefit with no reduction, regardless of the pension amount.

What if I worked for the government but also worked in private jobs?

If you worked in both government and private jobs, the WEP may still explore if your government pension is from a job where you did not pay Social Security taxes. The WEP looks at your total earnings history, including both government and private work. Contact Social Security to find out whether the WEP applies and how much your benefit would be reduced.

Can I avoid the Windfall Elimination Provision by delaying my claim?

No. Delaying your claim does not eliminate the WEP. However, delaying increases your base Social Security benefit, which means the WEP reduction is applied to a larger amount. The net benefit to you may still be higher if you delay, but the WEP itself will still explore.

What if my spouse has a government pension — does that affect my Social Security?

Your spouse's government pension does not directly affect your Social Security benefit. However, if you are claiming a spousal benefit based on your spouse's Social Security record, and you also have your own government pension, the GPO may reduce your spousal benefit by two-thirds of your pension.

Will my Social Security benefit increase if my pension increases?

No. The GPO and WEP reductions are based on the amount of your pension when you claim Social Security. If your pension increases later through cost-of-living adjustments or other means, the reduction does not increase. Your Social Security benefit stays the same.