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SS higher earner pension lower earner
Old 05-26-2016, 12:27 PM   #1
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SS higher earner pension lower earner

I plan to take at 62 because of health issues. However, I am the high earner. My DH will have a state pension (IL sigh). Does it or how does it impact him if I take early for survivors benefits?
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Old 05-26-2016, 01:02 PM   #2
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Quote:
Originally Posted by ecowtent View Post
I plan to take at 62 because of health issues. However, I am the high earner. My DH will have a state pension (IL sigh). Does it or how does it impact him if I take early for survivors benefits?
https://www.ssa.gov/pubs/EN-05-10007.pdf

Quote:
We’ll reduce your Social Security benefits
by two-thirds of your government pension. In
other words, if you get a monthly civil service
pension of $600, two-thirds of that, or $400,
must be deducted from your Social Security
benefits. For example, if you’re eligible for a
$500 spouses, widows or widowers benefit from
Social Security, you’ll get $100 a month from
Social Security ($500 – $400 = $100).
The way you ask the question implies that you're unfamiliar with GPO. I strongly suggest you go to the SS site and read about it. I've attached a link to their pdf. I believe the rule is that GPO offsets survivor's benefits to your husband by 67% of his Illinois pension regardless of when you begin your SS.

If your DH's Ill pension is of any size, GPO will preclude him collecting any of your SS, either spousal or survivor, ever. Therefore, the best way for you to protect him is to begin SS at 62 and invest it. Whenever you pass, he'll have that extra nest egg in addition to whatever else there is. If you wait on SS and die before you start collecting, neither he nor you will have ever received any SS benefit.

DW and I are in the same situation and I started SS at 62 as protection for her. She'll never benefit from my SS in any way due to GPO, but we'll have a somewhat larger portfolio when I die due to the SS benefits I've collected so far.
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Old 05-26-2016, 01:59 PM   #3
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I am unfamiliar with GPO. Thank you . I will read through the link. I had been thinking what you noted. Thank you for the explanation.
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