qualified social security replacement question
DW has a money purchase pension plan 401(a) in lieu of Social Security (she works for a municipality). So the Government Pension Offset will apply to the spousal and survivor benefits from my SS. It is clear to me how the GPO would be calculated with a defined benefit pension, but how can the GPO be calculated on a defined contribution pension?
Specifically, according to DW's employee handbook, the 401(a) does not have to be taken as an annuity, but may be taken as a lump sum, or some other non-annuity payment option. And the 401(a) can be mixed (after retirement) with other accounts like a 457. So what is the way to calculate the GPO on a pension lump sum?
"The natural inclination of every boat everywhere is to sink".......Nicole Pasulka