A CalSTRS member expecting to receive a Social Security spousal benefit may have that benefit reduced or eliminated by the Government Pension Offset (GPO) based on their CalSTRS benefit.

• What is the GPO?
• When does the GPO apply to a CalSTRS member?
• How is CalSTRS benefit used in calculating GPO?
• If a member receives a Social Security benefit based on his or her own covered employment and a spousal benefit, does the GPO apply only to the excess spousal benefit or to the person's entire Social Security benefit?
• If a CalSTRS member takes a partial lump sum distribution, does the GPO apply?
• Does a CalSTRS member need to report to the Social Security Administration a cost of living adjustment to their CalSTRS benefit if the benefit is already offset by GPO?

What is the GPO?

The GPO is another provision under the Social Security Act. The GPO potentially reduces or eliminates the amount of Social Security benefit you may receive as a spouse or surviving spouse if you receive a pension for work not covered by Social Security.

When does the GPO apply to a CalSTRS member?

The GPO applies only if the CalSTRS member receives a CalSTRS retirement or disability benefit, and is eligible for Social Security benefits as a spouse or surviving spouse. Under this provision, a CalSTRS member's Social Security benefit may be reduced by two-thirds of the amount of the member's CalSTRS pension or disability benefit. See GPO Fact Sheet for additional information.

How is CalSTRS benefit used in calculating GPO?

Two-thirds of the monthly CalSTRS pension or disability benefit is subtracted from the Social Security benefit. Note: Under the GPO, it is possible for the spouse's or surviving spouse's benefit to be totally eliminated. To illustrate this impact, see the example below:

Return to top

If a member receives a Social Security benefit based on his or her own covered employment and a spousal benefit, does the GPO apply only to the excess spousal benefit or to the person's entire Social Security benefit?

The GPO will apply only to the excess spousal benefit. For further clarification, see answer to "Can a member's Social Security benefit be reduced by both WEP and GPO?"

If a CalSTRS member takes a partial lump sum distribution, does the GPO apply?

Yes; the partial lump sum amount will be annuitized over the actuarial life expectancy to determine a monthly benefit. The monthly benefit amount would then be added to the member's monthly CalSTRS benefit. The new total, which is equal to what the member would have received had the partial lump sum not been taken, would be would be used to determine the GPO reduction.

Does a CalSTRS member need to report to the Social Security Administration a cost of living adjustment to their CalSTRS benefit if the benefit is already offset by GPO?

Yes. Because the reduction is based on the pension, the member needs to report any changes to the monthly amount as soon as possible. If the increase is not reported, and Social Security discovers the error, the member will be required to reimburse Social Security for that amount.