Social Security: The Government Pension
Offset (GPO)
Updated March 7, 2022
Congressional Research Service
https://crsreports.congress.gov
RL32453

Social Security: The Government Pension Offset (GPO)

Summary
Social Security spousal benefits were established in the 1930s to help support wives who are
financially dependent on their husbands. It has since become more common for both spouses in a
couple to work, leading to more cases in which both members of a couple are entitled to Social
Security or other government pensions based on their own work records. Social Security does not
provide both a full retired-worker and a full spousal benefit to the same individual.
Two provisions are designed to reduce the Social Security spousal benefits of individuals who are
not financially dependent on their spouses because they receive benefits based on their own work
records. These are
 the dual entitlement rule, which applies to spouses who qualify for both
(1) Social Security spousal benefits based on their spouses’ work histories in
Social Security–covered employment and (2) their own Social Security retired-
or disabled-worker benefits, based on their own work histories in Social
Security–covered employment; and
 the Government Pension Offset (GPO), which applies to spouses who qualify for
both (1) Social Security spousal benefits based on their spouses’ work histories in
Social Security–covered employment and (2) their own retirement or disability
government pensions, based on their own work in government employment that
was not covered by Social Security.
The dual entitlement rule requires that 100% of a Social Security retirement or disability benefit
as a covered worker is subtracted from any Social Security spousal or widow(er)’s benefit an
individual is eligible to receive. The GPO reduces Social Security spousal or widow(er)’s benefits
by two-thirds of the retirement or disability pension from noncovered government employment.
The GPO does not reduce the benefits of the spouse who was covered by Social Security.
Opponents contend that the GPO is imprecise and can be unfair. Defenders argue it is the best
method currently available for preserving the spousal benefit’s original intent of supporting
financially dependent spouses and for eliminating an unfair advantage for spouses working in
non–Social Security–covered employment compared with spouses working in Social Security–
covered jobs (who are subject to the dual entitlement rule).
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Social Security: The Government Pension Offset (GPO)

Background
In general, Social Security spousal and survivor benefits are paid to the spouses of retired,
disabled, or deceased workers covered by Social Security. The spousal benefit equals 50% of a
retired or disabled worker’s benefit and the survivor benefit equals 100% of a deceased worker’s
benefit.
Spousal and widow(er)’s benefits, which Congress created in 1939 and 1950,1 are intended for
individuals who are financially dependent on a working spouse. For this reason, but also because
of the costs, Social Security does not provide both full worker and full spousal benefits to the
same individual. For persons who qualify for both a Social Security worker benefit (retirement or
disability) based on their own work history and a Social Security spousal benefit based on a
spouse’s work history, the dual entitlement rule effectively caps total benefits at the higher of the
worker’s own benefit or the spousal benefit. The dual entitlement rule has been in law since 1939,
when Congress created benefits for eligible wives and widows. The Government Pension Offset
(GPO) is analogous in purpose to the dual entitlement provision and applies to individuals who
qualify for both a retirement or disability pension based on their own non–Social Security–
covered government work and a Social Security spousal benefit based on a spouse’s work in
Social Security–covered employment.2 The GPO was originally established in 1977. It replaced
an earlier dependency test for spousal benefits that had been in law since 1950. The dual
entitlement rule and the GPO share the same intent—to reduce the Social Security spousal
benefits of individuals who are not financially dependent on their spouses because they receive
their own retired-worker or disabled-worker Social Security benefits, or their own non–Social
Security pension benefits.
Social Security Covered and Noncovered Work
A worker is covered by Social Security if he or she works in covered employment and pays into
Social Security through the Federal Insurance Contributions Act (FICA) payroll tax. To be
eligible for a Social Security retired-worker benefit, a worker generally needs 40 earnings credits
(10 years of Social Security–covered employment).3 Disabled workers are generally required to
have worked fewer years, depending on the age at which the worker became disabled.4
Approximately 94% of workers were covered by Social Security as of January 2021.5 The
majority of noncovered positions are held by government employees: most federal employees
hired before 1984 and some state and local government employees. Nationwide, approximately

1 Wife’s and widow’s benefits were created in 1939, while husband’s and widower’s benefits were enacted in 1950. As
a result of the Supreme Court’s decision in Obergefell v. Hodges, the Social Security Administration is now able to
recognize same-sex marriages and certain nonmarital legal relationships in all states, territories, and the District of
Columbia. See CRS Report R41479, Social Security: Revisiting Benefits for Spouses and Survivors.
2 The Government Pension Offset (GPO) is often confused with the Windfall Elimination Provision (WEP), which
reduces Social Security benefits that a person receives as a worker if he or she also has a government pension based on
work that was not covered by Social Security. For additional information on the Windfall Elimination Provision (WEP),
please refer to CRS Report 98-35, Social Security: The Windfall Elimination Provision (WEP).
3 A worker may earn up to four earnings credits per calendar year. In 2022, a worker earns one credit for each $1,510 of
covered earnings, up to a maximum of four credits for covered earnings of $6,040 or more. Earnings credits are also
called quarters of coverage.
4 Social Security Administration (SSA), How You Earn Credits, 2022, https://best.ssa.gov/pubs/EN-05-10072.pdf.
5 SSA, Office of Chief Actuary (OCACT), Social Security Program Fact Sheet, January 2022, https://www.ssa.gov/
OACT/FACTS/fs2021_12.pdf.
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72% of state and local government employees were covered by Social Security in 2018.6
However, coverage varied from state to state. For example, approximately 95% of state and local
employees in New York were covered by Social Security, whereas less than 3% of state and local
employees in Ohio, and about 3% in Massachusetts, were covered.7
The Dual Entitlement Rule and the GPO
The GPO is intended to approximate Social Security’s dual entitlement rule. Both provisions are
intended to reduce the Social Security benefits of spouses or widow(er)s who are not financially
dependent on their spouses because they receive retirement or disability benefits based on their
own work records.
Dual Entitlement Rule
Without the dual entitlement rule, a couple with two earners covered by Social Security would
receive two full primary benefits as well as two full spousal or widow(er)’s benefits. The Social
Security dual entitlement rule requires that a beneficiary effectively receive the higher of the
Social Security worker’s benefit or the spousal or widow(er)’s benefit, but not both. The total
benefit received by a worker consists of his or her own worker benefit plus the excess of the
spousal or widow(er)’s benefit (if any) over his or her own benefit—not the sum of the two
benefits. So, in cases where the spousal or widow(er)’s benefit is higher than the worker’s own
benefit, the worker receives his or her own worker benefit plus the reduced spousal or
widow(er)’s benefit, which is the difference between the spousal or widow(er)’s benefit and the
worker’s own benefit (100% reduction). In cases where the worker’s own benefit is higher than
the spousal or widow(er)’s benefit, the worker receives only his or her own benefit (i.e., the
spousal or widow[er]’s benefit is reduced to zero).
Table 1 demonstrates how the Social Security dual entitlement rule is applied to spouses.
Table 1. Dual Entitlement Formula Applied to Spouses

John
Mary
Social Security monthly worker benefit (based on worker’s earnings record)
$2,000
$900
Maximum Social Security monthly spousal benefit (based on spouse’s earnings record,
$450
$1,000
equal to 50% of the spouse’s Social Security worker benefit)
Actual Social Security spousal monthly benefit paid (subtract worker benefit from
$0
$100
spousal benefit; $0 if worker benefit is larger)
Total (worker and spousal) Social Security monthly benefits paid to John and Mary
$2,000
$1,000
Source: Illustrative example provided by the Congressional Research Service (CRS).

6 SSA, unpublished table, “Social Security and Medicare Coverage of Workers from their State and Local Government
Employment in 2018.”
7 SSA, unpublished table, “Social Security and Medicare Coverage of Workers from their State and Local Government
Employment in 2018.” The disparity in coverage among states occurs because, while Social Security originally did not
cover any state and local government workers, over time the law has changed. Most state and local government
employees became covered by Social Security through voluntary agreements between the Social Security
Administration (SSA) and individual states, known as Section 218 Agreements because they are authorized by §218 of
the Social Security Act. Beginning in July 1991, state and local employees who were not members of a public
retirement system or covered by a Section 218 agreement were mandatorily covered by Social Security.
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Social Security: The Government Pension Offset (GPO)

In this example, both John and Mary have worked enough years in Social Security–covered
positions (i.e., paid into Social Security) to qualify for Social Security retirement benefits. John
has earned a monthly Social Security worker benefit of $2,000. His wife Mary has earned a
monthly Social Security worker benefit of $900. Both John and Mary are also eligible for spousal
benefits based on the other’s earnings: John is eligible for a $450 monthly spousal benefit, and
Mary is eligible for a $1,000 monthly spousal benefit. Under the dual entitlement rule, John will
not be paid a spousal benefit because his $2,000 worker benefit based on his own earnings is
higher than and more than offsets the potential $450 spousal benefit. Mary’s worker benefit of
$900 must be subtracted from her potential $1,000 spousal benefit, and only the difference of
$100 is paid as a spousal benefit. In total, Mary will receive $1,000 monthly—$900 as a Social
Security worker benefit and $100 as a Social Security spousal benefit. The Social Security
benefits received by the couple would total $3,000 per month.
If John were to predecease Mary, Mary would then be entitled to a monthly widow’s benefit of up
to 100% of John’s monthly amount.8 Mary would continue to collect her own benefit of $900
monthly, and that amount would offset the potential $2,000 monthly widow’s benefit based on
John’s work history. Thus, Mary would receive a Social Security worker benefit of $900 and a
Social Security widow’s benefit of $1,100 ($2,000-$900), for a total monthly benefit of $2,000.
Because most workers are in Social Security–covered employment, the dual entitlement scenario
is more common than the GPO among two-earner couples. In 2020, approximately 7.4 million
out of 46.3 million Social Security retired worker beneficiaries, or about 15.9%, were dually
entitled.9
Government Pension Offset Formula
The Social Security spousal or widow(er)’s benefit of a person who also receives a pension from
government employment (federal, state, or local) that was based on work not covered by Social
Security is reduced by a provision known as the Government Pension Offset (GPO).10 The GPO
reduction to Social Security spousal and widow(er)’s benefits equals two-thirds of the pension
from noncovered government employment. If the pension from noncovered work is sufficiently
large in comparison to a person’s Social Security spousal or widow(er)’s benefit, the GPO may
eliminate the entire Social Security spousal or widow(er)’s benefit.
In December 2021, 723,970 Social Security beneficiaries (about 1% of all beneficiaries) had
spousal or widow(er)’s benefits reduced fully or partially by the GPO (this figure does not
include persons who were eligible for spousal or widow(er)’s benefits but were deterred from

8 Technically, a widow(er)’s benefit is equal to up to 100% of the worker’s Primary Insurance Amount (PIA). The
worker’s PIA is the benefit payable to the worker at full retirement age before any applicable reductions. The
terminology used here is intended for ease of reference. For more information, see CRS Report R42035, Social Security
Primer.
9 SSA, Annual Statistical Supplement 2021, Table 5.G1, https://www.ssa.gov/policy/docs/statcomps/supplement/2021/
5g.html#table5.g1 and Table 5.A1, https://www.ssa.gov/policy/docs/statcomps/supplement/2021/5a.html#table5.a1.
The term dually entitled applies only to those who receive spousal or widow(er)’s benefits. If an individual’s own
worker benefit is greater than his or her spousal or widow(er)’s benefit, that person receives the higher worker benefit
and is not considered dually entitled. Administrative data do not provide the number of people in this latter category.
10 A pension in this setting is referred to as a periodic or lump-sum payment received from an employer’s retirement or
disability plan based upon the individual’s noncovered earnings while in the service of a federal, state, or local
government. The payment can be from either a defined benefit or defined contribution plan—for example, 401(k),
403(b), or 457. For more information, see SSA, Program Operations Manual System (POMS), “GN 02608.100
Government Pension Offset (GPO) Provision,” at https://secure.ssa.gov/apps10/poms.nsf/lnx/0202608100.
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filing for them because of the GPO).11 The GPO does not affect the amount of the Social Security
benefit a worker may receive based on his or her own work in Social Security–covered
employment, but it does limit the amount that can be paid to his or her spouse or widow(er) who
has worked in non–Social Security–covered employment.
Table 2 provides an example of how the GPO is applied, assuming that John worked in Social
Security–covered employment while Mary spent her full career in state or local government
employment that was not covered by Social Security.
Table 2. GPO Formula for Spouses

John
Mary
Social Security retired- or disabled-worker monthly benefit (based on worker’s earnings
$2,000
—
record)
Non-Social Security–covered (government) monthly retirement or disability pension
—
$900
Maximum Social Security spousal monthly benefit eligible to receive (based on spouse’s
—
$1,000
earnings record, equal to 50% of the spouse’s Social Security retired worker benefit)
Reduction in Social Security spousal monthly benefit due to GPO (equals 2/3 of the non–
—
$600
Social Security–covered pension: $900*2/3=$600)
Actual Social Security spousal monthly benefit paid (subtract 2/3 of non–Social Security–
—
$400
covered worker’s pension from Social Security spousal benefit: $1,000-$600=$400)
Total monthly retirement benefits paid to John (Social Security only) and Mary (Social
$2,000
$1,300
Security plus pension from noncovered employment)
Source: Illustrative example provided by CRS.
Note: Dashes means not applicable.
In this example, John worked enough years in Social Security–covered employment to qualify for
a monthly Social Security retired-worker benefit of $2,000. His wife, Mary, is not eligible for a
Social Security retired-worker benefit because she worked in a non–Social Security–covered
government position and did not contribute to Social Security. Instead, Mary is eligible for a $900
government pension based on her work in a non–Social Security–covered position. Mary is also
eligible for a Social Security spousal benefit of up to $1,000 based on John’s work history. Under
the GPO, Mary’s potential Social Security spousal benefit is reduced by an amount equal to two-
thirds of her non–Social Security–covered government pension (or a reduction of $600), and the
difference of $400 ($1,000-$600) is paid to her as a Social Security spousal benefit. In total, Mary
will receive retirement benefits of $1,300 per month: $900 from her noncovered pension and
$400 from her Social Security spousal benefit.12
If John predeceased Mary, then two-thirds of her $900 noncovered pension ($600) would be used
to partially offset the $2,000 Social Security benefit she would be eligible for as a widow based
on John’s work history. She would receive a $1,400 monthly widow’s benefit from Social
Security (in addition to her $900 monthly noncovered pension benefit).
Table 3 highlights the differences between the dual entitlement rule and the GPO.

11 SSA, Office of Research Evaluation and Statistics (ORES), unpublished Government Pension Offset Table A,
December 2021.
12 In this example, John is not eligible for a Social Security spousal benefit because Mary’s employment was not
covered by Social Security.
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Table 3. Dual Entitlement Rule Compared with Government Pension Offset
Dual Entitlement Rule
Government Pension Offset
Applies to individuals who qualify for both (a) a Social
Applies to individuals who qualify for both (a) a
Security worker benefit (retirement or disability)
government pension based on non–Social Security–covered
based on their own work history in Social Security–
government employment and (b) a Social Security spousal
covered employment and (b) a Social Security spousal
or widow(er)’s benefit based on a spouse’s Social
or widow(er)’s benefit based on their spouse’s work
Security–covered employment The GPO reduces Social
history in Social Security–covered employment.
Security benefits that a person receives as a spouse or
Dually entitled beneficiaries effectively receive the
widow(er) if he or she also has a federal, state or local
higher of the worker benefit or the spousal or
government pension based on work that was not covered
widow(er)’s benefit. Specifically, the Social Security
by Social Security.
dual entitlement rule requires that 100% of a Social
The GPO reduction to Social Security spousal or
Security retirement or disability benefit earned as a
widow(er)’s benefits is equal to two-thirds of the
worker be subtracted from any Social Security spousal
noncovered retirement or disability government pension.
or widow(er)’s benefit one is eligible to receive. Only
Under the GPO, a Social Security spousal or widow(er)’s
the difference, if any, is paid as a spousal or
benefit may be reduced to zero.
widow(er)’s benefit and is added to the beneficiary’s
own worker benefit. Under the dual entitlement rule,
a Social Security spousal or widow(er)’s benefit may be
reduced to zero.
Source: Table compiled by CRS.
Rationale and Legislative History
Spouses’ Financial Dependence
The policy rationale for Social Security spousal benefits has been, since the creation of spousal
benefits in the 1930s, to support spouses who are financially dependent on the working spouse.
The dual entitlement rule has operated since 1939 as a gauge of financial dependence.
Parity Between Spouses Subject to the Dual Entitlement Rule and
the GPO
The GPO is intended to place spouses and widow(er)s whose government employment was not
covered by Social Security in approximately the same position as spouses whose jobs were
covered by Social Security. Before the GPO was enacted in 1977, workers who received pensions
from a government job not covered by Social Security could also receive full Social Security
spousal or widow(er)’s benefits even though they were not financially dependent on their
spouses. The scenarios below demonstrate why the law was changed.
Table 4 shows how the spousal benefit of the same individual, Mary, would vary under three
scenarios: (1) as a dually entitled recipient of Social Security retirement and spousal benefits;
(2) as the recipient of a noncovered government pension and Social Security spousal benefits
before the GPO was enacted; and (3) as the recipient of a noncovered government pension and
Social Security spousal benefits after the GPO was enacted. In all three examples, it is assumed
that Mary is potentially eligible for a Social Security spousal benefit of $1,000 per month,
computed as 50% of her husband’s monthly Social Security benefit of $2,000.
As a dually entitled retiree, under the first scenario, Mary’s $1,000 Social Security spousal
benefit is reduced by her own Social Security retired-worker benefit of $900, leaving her with a
net spousal benefit of $100 and a total (combined) Social Security benefit of $1,000. Under the
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second scenario (where Mary receives a noncovered government pension instead of a Social
Security retirement benefit), before the GPO takes effect, Mary’s Social Security spousal benefits
are not reduced at all and she receives a full Social Security spousal benefit of $1,000, plus the
noncovered pension of $900, for total monthly pension benefits of $1,900. Under the third
scenario (after the GPO was enacted in 1977), Mary’s Social Security spousal benefit is reduced
by two-thirds of her $900 noncovered government pension, leaving her with a net Social Security
spousal benefit of $400 ($1,000-$900*2/3) and a total monthly pension benefit of $1,300 ($900
from the noncovered pension + $400 from the Social Security spousal benefit).
Note that the reduction to Social Security spousal benefits is smaller under the GPO than it is
under the dual entitlement rule: Mary receives monthly Social Security spousal benefits of $100
under the dual entitlement rule, compared with $400 under the GPO. Her total monthly retirement
benefits are $1,000 under the dual entitlement rule, compared with $1,300 under the GPO. For
those under the dual entitlement rule, the Social Security spousal benefit is reduced by one dollar
for every dollar of Social Security retirement benefits based on their own work histories in Social
Security–covered employment. For those under the GPO, however, the Social Security spousal
benefit is reduced by approximately 67 cents for every dollar of a pension from noncovered
government employment.
Table 4. Mary’s Spousal Benefit Under Three Scenarios: Dual Entitlement Rule,
Before GPO Enactment, and After GPO Enactment

Mary works in
Social Security–
Mary works in Non-Social
Covered Position
Security–Covered Position
Before GPO
After GPO
Dually Entitled
Enactment
Enactment
Social Security retired-worker monthly benefit
$900
$0
$0
(based on own earnings record)
Non-Social Security–covered monthly pension
$0
$900
$900
Maximum Social Security spousal monthly benefit
eligible to receive (based on spouse’s earnings
$1,000
$1,000
$1,000
record), equal to 50% of the spouse’s Social
Security retirement benefit
Reduction in spousal monthly benefit due to
dual entitlement rule (equal to worker’s Social
$900
—
—
Security retired-worker benefit)
Reduction in Social Security spousal monthly
benefit due to GPO (equals 2/3 of non–Social
—
—
$600
Security–covered pension)
Actual Social Security spousal monthly benefit
$100
$1,000
$400
paid
Total monthly retirement benefits paid to Mary
(Social Security spousal benefit plus either (a)
$1,000
$1,900
$1,300
Social Security retired-worker benefit or (b)
noncovered pension)
Source: Illustrative example provided by CRS.
Notes: Dashes are used to represent scenarios in which either the dual entitlement rule or the GPO are not
applicable. For example, in the dual entitlement scenario, Mary does not receive a noncovered government
pension and, thus, the GPO does not apply.
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Why a Two-Thirds Reduction?
The GPO was originally established in 1977 (P.L. 95-216) and replaced an earlier dependency test
for spousal benefits that had been in law since 1950.13 The 1977 law provided that 100% of the
noncovered government pension be subtracted from the Social Security spousal or widow(er)’s
benefit. If the original legislation had been left intact, individuals affected by the dual entitlement
rule and the GPO would have been treated identically because, in both cases, the Social Security
spousal or widow(er)’s benefit would have been reduced by 100% of the pension from
noncovered employment.
The GPO’s two-thirds offset rule was established by the Social Security Amendments of 1983
(P.L. 98-21), which made a number of amendments to Social Security. One section of the House
version of this law proposed that the amount used in calculating the offset be one-third of the
noncovered government pension. The Senate version contained no such provision and would
therefore have left standing the 100% offset that existed at the time. The conferees adopted the
House bill except that the offset was fixed at two-thirds of the noncovered government pension.14
Who Is Affected by the GPO?
In 2018, approximately 6.6 million state and local government workers (28% of all state and local
government workers) were in non–Social Security–covered positions.15 A government worker
who does not pay into Social Security may potentially be affected by the GPO if he or she is
entitled to a Social Security spousal or widow(er)’s benefit based on a spouse’s or ex-spouse’s
work in Social Security–covered employment.
Generally, federal government employees hired before 1984 are covered by the Civil Service
Retirement System (CSRS) and are not covered by Social Security; therefore, they may be
subject to the GPO.16 Most federal workers first hired into federal service after 1983 are covered
by the Federal Employees’ Retirement System (FERS), which includes Social Security coverage.
Thus, although FERS retirees are not subject to the GPO, they, like all covered workers, may be
subject to the Social Security dual entitlement rule.
As of December 2021, 723,970 Social Security beneficiaries, or about 1% of all beneficiaries, had
spousal or widow(er)’s benefits reduced by the GPO (not counting those who were potentially
eligible for spousal or widow(er)’s benefits but were deterred from filing for them because of
their expectation that the GPO would eliminate the spousal or widow(er)’s benefit). Of these
persons subject to the GPO, 52% were spouses and 48% were widows and widowers. About 83%
of all affected persons were women.17 Table 5 provides a breakdown of the affected beneficiaries
by state and type of benefit.

13 The dual entitlement rule has been in law since 1939, when spousal benefits were introduced.
14 Effectively, the GPO offset formula assumes that two-thirds of the government pension is roughly equivalent to the
Social Security retirement (or disability) benefit the spouse would have earned as a worker if his or her job had been
covered by Social Security.
15 SSA, unpublished table, “Social Security and Medicare Coverage of Workers from their State and Local Government
Employment in 2018.”
16 Workers who switch from the Civil Service Retirement System (CSRS) to the Federal Employees’ Retirement
System (FERS) must work for five years under FERS to be exempt from the GPO.
17 SSA, ORES, unpublished Government Pension Offset Table DE01, December 2021.
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Table 5. Number of Social Security Beneficiaries Affected by GPO,
by State, Type of Benefit, and Offset Status, December 2021
Partially
Fully Offset
Offset
State
Total
Spouses
Widow(er)s
Statusa
Statusb
Total
723,970
377,765
346,205
512,200
211,770
Alabama
4,523
1,814
2,709
3,381
1,142
Alaska
3,452
1,912
1,540
2,479
973
Arizona
9,986
5,100
4,886
7,369
2,617
Arkansas
3,150
1,451
1,699
2,333
817
California
102,115
55,175
46,940
82,342
19,773
Colorado
27,038
14,985
12,053
15,418
11,620
Connecticut
9,718
5,592
4,126
8,451
1,267
Delaware
740
289
451
562
178
District of Columbia
2,068
472
1,596
1,703
365
Florida
29,136
15,065
14,071
22,126
7,010
Georgia
20,931
10,090
10,841
15,049
5,882
Hawaii
1,946
1,000
946
1,501
445
Idaho
2,306
1,264
1,042
1,754
552
Illinois
47,669
25,919
21,750
39,752
7,917
Indiana
4,893
2,227
2,666
3,615
1,278
Iowa
1,881
899
982
1,433
448
Kansas
2,348
1,062
1,286
1,611
737
Kentucky
12,987
7,130
5,857
10,649
2,338
Louisiana
39,398
19,636
19,762
23,801
15,597
Maine
7,875
4,338
3,537
5,307
2,568
Maryland
9,008
2,906
6,102
7,235
1,773
Massachusetts
40,675
22,328
18,347
28,875
11,800
Michigan
6,122
3,017
3,105
4,583
1,539
Minnesota
4,912
2,420
2,492
4,002
910
Mississippi
3,233
1,423
1,810
2,455
778
Missouri
16,448
9,271
7,177
13,309
3,139
Montana
1,341
664
677
969
372
Nebraska
1,274
576
698
925
349
Nevada
11,567
6,019
5,548
8,848
2,719
New Hampshire
2,677
1,442
1,235
1,962
715
New Jersey
4,198
1,626
2,572
3,468
730
New Mexico
3,363
1,637
1,726
2,569
794
New York
6,845
2,941
3,904
5,495
1,350
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Partially
Fully Offset
Offset
State
Total
Spouses
Widow(er)s
Statusa
Statusb
North Carolina
8,252
3,747
4,505
6,170
2,082
North Dakota
481
189
292
313
168
Ohio
100,661
55,288
45,373
61,577
39,084
Oklahoma
3,901
1,487
2,414
2,612
1,289
Oregon
4,902
2,578
2,324
3,592
1,310
Pennsylvania
7,571
3,191
4,380
5,748
1,823
Rhode Island
2,072
1,123
949
1,748
324
South Carolina
5,561
2,726
2,835
4,145
1,416
South Dakota
825
415
410
598
227
Tennessee
6,633
3,054
3,579
4,977
1,656
Texas
96,312
50,411
45,901
54,584
41,728
Utah
2,804
1,349
1,455
1,789
1,015
Vermont
678
324
354
515
163
Virginia
7,856
2,924
4,932
5,852
2,004
Washington
6,922
3,504
3,418
5,034
1,888
West Virginia
1,607
695
912
1,024
583
Wisconsin
3,541
1,780
1,761
2,832
709
Wyoming
610
312
298
401
209
Outlying areas and
16,958
10,978
5,980
13,358
3,600
foreign countries
Source: Social Security Administration, Office of Research, Evaluation and Statistics, December 2021,
unpublished data.
Notes: Includes persons entitled to spousal/widow(er)’s benefits only and those dually entitled to
spousal/widow(er)’s and worker benefits.
a. Individual received no Social Security spousal or widow(er)’s benefit because the reduction in the Social
Security spousal or widow(er)’s benefit (a reduction equal to two-thirds of the pension from noncovered
government employment) was greater than the Social Security benefit itself. Either the noncovered pension
was large, or the potential Social Security benefit was small (or both).
b. Individual received partial Social Security spousal or widow(er)’s benefits because the reduction in the Social
Security benefit (a reduction equal to two-thirds of the pension from noncovered government employment)
was less than the Social Security benefit itself.
In December 2021, the average noncovered government pension amount for persons affected by
the GPO was $2,598 per month ($2,363 for women and $3,691 for men).18 The average pre-offset
Social Security spousal benefit at that time was $973 per month ($1,046 for women and $631 for
men).19 The average reduction caused by the GPO was $761 per month ($793 a month for women

18 SSA, ORES, unpublished Government Pension Offset Table G209, December 2021. Data are limited to those
beneficiaries for whom the offset amount is available.
19 SSA, ORES, unpublished Government Pension Offset Table G309, December 2021. Data are limited to those
beneficiaries for whom the offset amount is available. Includes persons entitled to spousal/widow(er)’s benefits only
and those dually entitled to spousal/widow(er)’s and worker benefits. For a dually entitled beneficiary, the pre-offset
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and $610 for men).20 The average Social Security spousal benefit component after applying the
GPO was $212 per month ($253 a month for women and $21 a month for men).21 Among
beneficiaries who were affected by the GPO in December 2021, 71% had their potential Social
Security spousal or widow(er)’s benefit fully offset by the GPO reduction; that is, their potential
Social Security spousal or widow(er)’s benefit was reduced to zero.22 Among those whose Social
Security spousal or widow(er)’s benefit was partially offset by the GPO reduction, on average,
the reduced Social Security benefit comprised about 42% of the total payment received
(noncovered government pension plus reduced Social Security benefit).23
In comparison to the 716,662 beneficiaries affected by the GPO in 2020,24 the dual entitlement
rule affected approximately 7.4 million beneficiaries. About 7.1 million (96%) of all affected
beneficiaries were women.25 Wives made up 42% of all dually entitled retired workers, and
widows made up 54%. Among dually entitled workers, the average Social Security total benefit
(retired worker plus spouse or widow(er)’s benefit) received was $1,388.26 Of this amount, $791
was the retired worker component of the benefit. The spousal or widow(er)’s benefit component
was $597 (after reduction for dual entitlement).27 On average, among dually entitled retired
workers, therefore, the spousal or widow(er)’s benefit comprised about 43% of the total Social
Security benefit received.
Issues
Opponents argue that the GPO is not well understood and that it harms lower-wage workers. The
GPO’s defenders maintain that it helps ensure that only financially dependent spouses receive the
Social Security spousal or widow(er)’s benefit, while curtailing what otherwise would be an
unfair advantage for government workers who are not covered by Social Security.
Awareness of the GPO and Retirement Preparedness
The GPO’s critics say that it is not well understood and that many affected by it are unprepared
for a smaller Social Security benefit than they had assumed in making retirement plans. The
provision’s supporters say it has been law for more than 40 years (it was enacted in 1977);
therefore, people have had ample time to adjust their retirement plans. P.L. 108-203, passed in

Social Security benefit is the difference between the larger spousal/widow(er)’s benefit and the smaller worker benefit.
20 SSA, ORES, unpublished Government Pension Offset, Table G609, December 2021. Data are limited to those
beneficiaries for whom the offset amount is available.
21 SSA, ORES, unpublished Government Pension Offset Table G509, December 2021. Data are limited to those
beneficiaries for whom the offset amount is available. Amounts may not add due to rounding.
22 SSA, ORES, unpublished Government Pension Offset Table G105, December 2021. Data are limited to those
beneficiaries for whom the offset amount is available.
23 SSA, ORES, unpublished Government Pension Offset Tables G209 and G509, December 2021. Data are limited to
those beneficiaries for whom the offset amount is available.
24 SSA, ORES, unpublished Government Pension Offset Table DE01, December 2020.
25 SSA, Annual Statistical Supplement, 2021, Table 5.G2, available at https://www.ssa.gov/policy/docs/statcomps/
supplement/2021/5g.html#table5.g2. The term dually entitled applies only to those who receive spousal or widow(er)’s
benefits. If an individual’s own worker benefit is greater than his or her spousal or widow(er)’s benefit, that person
receives the higher worker benefit and is not considered dually entitled. Administrative data do not provide the number
of people in this latter category.
26 SSA, Annual Statistical Supplement, 2021, Table 5.G3.
27 SSA, Annual Statistical Supplement, 2021, Table 5.G3.
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2004, included a provision that sought to ensure that SSA and government employers notify
potentially affected individuals about the effect of the GPO and the Windfall Elimination
Provision (WEP).28
The SSA’s personalized mailings to workers, entitled “Your Social Security Statement,”
contained a paragraph explaining the GPO and the WEP. Though SSA suspended the universal
mailing of annual statements in 2011 due to budget constraints, an online version that has retained
the GPO and WEP educational material can be created for those who establish an online
account.29 So the material in the statements can continue to reach a broader audience, Congress
directed SSA, in conjunction with the adoption of P.L. 113-76, the Consolidated Appropriations
Act, 2014, to resume the mailing of statements to targeted groups and to those who are not able to
successfully register for an online account.30
GPO Reduction Smaller than Dual Entitlement Reduction
The reduction to Social Security spousal or widow(er)’s benefits is smaller under the GPO than it
is under the dual entitlement rule. Those under dual entitlement face a 100% offset to spousal or
widow(er)’s benefits for every dollar received from a Social Security retired-worker benefit,
whereas those under the GPO face an offset to spousal and widow(er)’s benefits equal to two-
thirds of a non–Social Security–covered pension. In the example shown in Table 4, in which
comparable spouses each receive a $900 retirement benefit based on their own work histories,
applying the dual entitlement provision’s 100% offset results in a $100 monthly Social Security
spousal benefit for Mary. Comparatively, Mary qualifies for a $400 monthly Social Security
spousal benefit under the GPO’s two-thirds offset.
Parity Among Social Security–Covered Workers and
Noncovered Workers
The majority of state and local government workers, and federal employees hired since 1984, are
covered by Social Security. Some argue that eliminating the GPO would be unfair to government
employees in Social Security–covered positions, who would continue to be subject to the dual
entitlement provision. As discussed above, for those under dual entitlement, the Social Security
spousal or widow(er)’s benefit is reduced by one dollar for every dollar of Social Security
retirement benefits based on their own work history in Social Security–covered employment. For
those under the GPO, however, the Social Security spousal or widow(er)’s benefit is reduced by
approximately 67 cents for every dollar of a pension from noncovered government employment.

28 The WEP reduces Social Security benefits that a person receives as a worker if he or she also has a government
pension based on work that was not covered by Social Security.
29 SSA at http://www.ssa.gov/myaccount/.
30 The SSA plan to increase the number of individuals receiving Social Security Statements, March 2014,
http://www.ssa.gov/legislation/Social%20Security%20Statement%20Plan.pdf. Starting January 2017, paper statements
were sent to people aged 60 and over, who are not getting benefits and do not have an online Social Security account.
See https://blog.ssa.gov/finding-value-and-my-social-security-in-light-of-budget-cuts/. In 2019, S. 2989 and H.R. 5306
(Know Your Social Security Act) were introduced to direct SSA to provide statements by mail unless the individual
chooses electronic delivery.
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Impact on Low-Wage Workers
There is disagreement about the original intention of the GPO, which was enacted in 1977. Some
argue that the original purpose was to prevent higher-paid workers from reaping overly generous
spousal or widow(er)’s benefits. Others contest this, saying that the GPO was never targeted to a
particular income group.
The GPO’s opponents argue that the provision hurts lower- and middle-wage workers, such as
teachers, and in some circumstances throws these workers into poverty. Opponents also say that
the GPO is especially disadvantageous for surviving spouses.
Evidence of the GPO’s effect on low earners comes from SSA data on the program.31 While 71%
of those affected by the GPO have their benefits fully offset (December 2021), about 17% of
those with noncovered pensions of less than $1,000 per month had their benefits fully offset,
compared with 60% of those with monthly noncovered pensions between $1,001 and $1,999,
88% of those between $2,000 and $2,999, and nearly 100% of individuals with noncovered
pensions over $3,000 per month.32 Among the group of individuals whose benefits were
completely eliminated by the GPO, about 5% of this group had a noncovered pension amount
lower than $1,000 per month.33 And among the beneficiaries who received some Social Security
spousal or widow(er)’s benefit after GPO reduction (partially offset), about 60% of them had a
noncovered government pension amount less than $1,000 per month, and almost 100% of them
had a noncovered government pension amount less than $3,000 per month.34 Thus, if the
noncovered pension amount is a reflection of the approximate earnings levels of individuals
affected by the GPO, a greater percentage of those with lower earnings receive at least a partial
Social Security benefit relative to the overall GPO-affected population.
Regarding concerns about pushing those affected by the GPO into poverty, in 2001, the poverty
rate among those affected by the GPO was approximately 6.0%, whereas the poverty rate for
those affected by the dual entitlement rule was approximately 8.9%.35 The poverty rate for all

31 How an individual would be affected by the GPO versus the dual entitlement rule is determined by several key
variables, including the relative earnings level of the individual, the timing of the worker’s noncovered employment
during his or her career, and the number of years in noncovered employment. The primary difference between
outcomes among high and low earners is driven by the fact that a worker’s Social Security benefit (the basis for the
dual entitlement offset, which reduces the spousal benefit by 100% of this amount) is progressive, while pensions from
noncovered government employment (the basis for the GPO reduction, which reduces spousal benefits by two-thirds of
this amount) generally provide a pension that is the same fixed percentage of earnings regardless of the earnings level.
As earnings rise, if the earnings are from noncovered employment then the pension from this employment rises
proportionately; if the earnings are from covered employment, then the Social Security benefit, which is progressive,
rises less than proportionately. Hence for high earners, the GPO offset to spousal benefits, which is two-thirds of
noncovered pensions and which rises proportionately as income rises, becomes more significant than the dual-
entitlement offset to spousal benefits, which involves a 100% offset to the Social Security benefit and which rises more
slowly as income rises. In general, any combination of variables (such as earnings level, timing of noncovered
employment, or number of years in noncovered employment) that increases the size of the noncovered government
pension more than it increases the size of the Social Security benefit (assuming the same earnings were covered by
Social Security) would make the dual entitlement rule more advantageous to an individual than the GPO.
32 CRS calculations based on data provided by SSA’s ORES, unpublished Table I, December 2021. The sample is
limited to those beneficiaries for which the offset amount is available.
33 CRS calculations based on data provided by SSA’s ORES, unpublished Table I, December 2021. The sample is
limited to those beneficiaries for which the offset amount is available.
34 CRS calculations based on data provided by SSA’s ORES, unpublished Table I, December 2021. The sample is
limited to those beneficiaries for which the offset amount is available.
35 Poverty rates were calculated by David Weaver, SSA’s Office of Retirement Policy, using the March 2001 Current
Population Survey (CPS). Poverty status is taken directly from the CPS and is thus subject to errors in the reporting of
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Social Security beneficiaries aged 65 and older was about 8.5%. For comparison purposes, the
poverty rate for the general population at that time was approximately 11.3%.
Imprecision of the Two-Thirds Offset to Noncovered
Government Pensions
Opponents point out that whatever the rationale for the GPO, reducing everyone’s spousal or
widow(er)’s benefit by two-thirds of their government pension is an imprecise way to estimate
what the spousal benefit would have been if the government job had been covered by Social
Security. If two-thirds of the government pension were in fact a good proxy for Social Security
retirement benefits, there would be no significant difference in outcomes between the dual
entitlement rule and the GPO. As noted above (see the previous section, “Impact on Low-Wage
Workers”), however, there is great variation in outcomes. The GPO may lead to a smaller offset
relative to the dual entitlement rule for low earners than for high earners.
Ideally, opponents argue, the way to compute the offset is to replicate the dual entitlement rule.
Under the dual entitlement rule, the reduction to the spousal or widow(er)’s benefit is Social
Security worker’s benefit, that is, applying Social Security benefit formula to the spouse’s all
Social Security–covered earnings. To mimic that approach, in cases that the spouse’s entire career
was not covered by Social Security, the GPO reduction would be an amount equivalent to
applying the Social Security benefit formula to all those noncovered earnings.36 All covered and
noncovered earnings have been reported to SSA on Form W-2 since 1978.37 Although some initial
records were incomplete or duplicative, sufficient earnings records over a worker’s entire
working life are now available to SSA. This data’s availability means that the offset based on
both spouses’ covered and noncovered earnings is now an option for Congress to consider.38
Applying the GPO to Government Versus Private Pensions
Some question why the GPO does not apply to the spousal or widow(er)’s benefits received by
private-sector workers’ spouses, who may receive private, employer-sponsored pensions (defined
benefit or defined contribution) in addition to Social Security benefits. Generally, the private-
sector employment on which the private pension is based would be covered by Social Security.
Therefore, the dual entitlement rule (which the GPO is meant to replicate) would instead reduce

income. The sample for the GPO and dually entitled poverty rates only includes persons for whom SSA administrative
records could be matched. The sample size for the GPO poverty rate is relatively small (130 cases). Poverty rates for
the Social Security beneficiary population aged 65 and over and for the general population do not require matched data
and are based completely on CPS data. Updated data for this comparison are not available.
36 In cases that the spouse’s career is split between covered and noncovered jobs, the GPO reduction would be the
Social Security benefit based on total earnings subtracting the Social Security benefit based on covered earnings—that
is, the part of Social Security benefits based on total earnings that are attributable to noncovered earnings. In this
situation, the person might be entitled to both Social Security worker’s benefits and spousal or widow(er)’s benefits
(i.e., dully entitled), and the person might be affected by both the Windfall Elimination Provision (WEP) and the GPO.
The person’s Social Security worker’s benefit might be reduced by the WEP, and the person’s Social Security spousal
or widow(er)’s benefit might be reduced by both Social Security worker’s benefit (affected by the WEP) and the GPO
reduction. For more information, see CRS Report R45845, Social Security: Beneficiaries Affected by Both the Windfall
Elimination Provision (WEP) and the Government Pension Offset (GPO).
37 Anya Olsen and Russell Hudson, “Social Security Administration’s Master Earnings File: Background Information,”
2009, Social Security Bulletin, vol. 69, no. 3, at https://www.ssa.gov/policy/docs/ssb/v69n3/v69n3p29.html.
38 The President’s Budget for FY2017 included a proposal to modify the GPO based on both spouses’ covered and
noncovered earnings. For more information, see https://www.ssa.gov/legislation/testimony_032216.html.
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any Social Security spousal or widow(er)’s benefits for which a beneficiary might be eligible. As
noted earlier, in many cases the dual entitlement rule would produce a larger reduction in spousal
or widow(er)’s benefits than does the GPO.
Cost of Eliminating the GPO
Some argue that weakening or eliminating the GPO would be costly at a time when neither Social
Security nor the federal budget is in sound financial condition. In 2007, SSA projected the 10-
year cost of repealing the GPO to be about $42 billion.39 In 2016, SSA estimated that it may cost
about 0.06% of present-law taxable payroll to eliminate the GPO.40 Such a move could also lead
to demands for repeal of the dual entitlement rule to ensure parallel treatment for those working
in Social Security–covered employment. In 2003, SSA estimated that eliminating the dual
entitlement rule would cost approximately $500 billion over a five-year period.41
Last Legislative Change: The GPO Last-Day Rule
A burgeoning controversy arose in the 108th Congress with the revelation that a growing number
of state and local government workers had been making use of a little-known provision of the law
that allowed them to escape the application of the GPO if they switched jobs at the very end of
their government careers. That provision granted an exception to the GPO if, on the last day of
one’s government service, he or she worked in a Social Security–covered position. On August 15,
2002, the Government Accountability Office (GAO) released a report that found that, as of June
2002, 4,819 individuals in Texas and Georgia had switched to Social Security–covered positions
to avoid having the GPO applied to their Social Security spousal benefits. The GAO projected
that the cost to the program for these cases could be about $450 million.42
On February 11, 2004, the House of Representatives agreed to Senate amendments and passed
H.R. 743, the Social Security Protection Act of 2003, which became P.L. 108-203.43 As discussed
below, P.L. 108-203 eliminated the last-day exception clause by requiring those workers
switching from noncovered positions to Social Security–covered positions to work in the covered
position for at least 60 months (five years) before being exempt from the GPO.44 The new GPO
provision became effective for Social Security spousal benefit applications filed after March 31,
2004.

39 SSA, Memorandum from Bert M. Kestenbaum and Tim Zayatz of the Office of the Chief Actuary, “Estimated
Additional OASDI Benefit Payments Resulting From Several Proposals to Modify the Windfall Elimination Provision
and the Government Pension Offset—INFORMATION,” October 26, 2007. SSA has not published a more recent
estimate.
40 SSA, Office of Chief Actuary, informal estimate in 2016.
41 SSA, Memorandum from Bert Kestenbaum of the Office of the Chief Actuary, “Estimated Additional OASDI
Benefit Payments from Proposals to Eliminate or Change the Dual-Entitlement Offset Provision—INFORMATION,”
April 17, 2003. SSA has not published a more recent estimate.
42 General Accounting Office (now called Government Accountability Office), Report GAO-02-950, Revision to the
Government Pension Offset Exemption Should Be Reconsidered, August 15, 2002.
43 For more information on H.R. 743, see SSA’s legislative bulletin on P.L. 108-203, http://www.socialsecurity.gov/
legislation/legis_bulletin_030404.html.
44 This five-year period for GPO exemption is consistent with that required of federal employees converting from
CSRS to FERS.
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How Does the Last-Day Rule Affect Exemption from the GPO?
Current Social Security beneficiaries who are receiving spousal benefits and are exempt from the
GPO because they retired from their noncovered positions in government under the last-day rule
would continue to be exempt from the GPO. Individuals may still be exempt from the GPO under
the following conditions:
 They applied for Social Security spousal benefits before April 1, 2004, and work
their last day in a Social Security–covered position within the same retirement
system. In this case, an individual who received a Social Security spousal benefit
before April 1, 2004, could continue to work in a noncovered position and still
make use of the last-day rule when he or she retires from government
employment, regardless of when the retirement occurs.
 Their last day of government service occurred before July 1, 2004, and they
worked their last day in a Social Security–covered position within the same
retirement system. In other words, if a worker switched from noncovered
government work to Social Security–covered work for his or her last day of work
within the same retirement system, he or she is exempt from the GPO, even if the
worker files for Social Security benefits at a later date. However, if a worker
returns to work in a noncovered position in the same retirement system that he or
she previously retired from and new contributions are made by either the
employee or employer to the noncovered pension system, the worker’s last-day
exemption from the GPO will be revoked and he or she will be subject to the new
60-month requirement for exemption from the GPO.
 Their last day of government service occurs on or after July 1, 2004, and before
March 2, 2009, and they work a total of 60 months in a Social Security–covered
position within the same retirement system. The required 60-month period of
Social Security–covered employment would be reduced by the number of months
the worker performed in Social Security–covered employment under the same
retirement system prior to March 2, 2004. However, in no case can the 60-month
requirement be reduced to less than one month. For example, a teacher who is
currently working in a noncovered position but who previously worked for 12
months in a Social Security–covered position under the same retirement system
would have the 60-month requirement reduced to 48 months. The remaining
months to be worked (in this case 48 months), must be worked consecutively and
after March 2, 2004. Thus, if the worker switched to a covered position in the
same retirement system as his or her prior government work for at least the final
48-month period of his or her employment and his or her last day of employment
was before March 2, 2009, the worker would be exempt from the GPO.
 Their last day of government service occurs after March 3, 2009, and they work
their last 60 months in a Social Security–covered position within the same
retirement system.
All other individuals receiving government pensions based on noncovered employment would be
subject to reductions in Social Security spousal or widow(er)’s benefits under the GPO.
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Author Information

Zhe Li

Analyst in Social Policy

Acknowledgments
SSA’s Office of Research, Evaluation, and Statistics provided unpublished data on beneficiaries affected by
the GPO. CRS Research Assistant Paul Romero assisted updating the report.

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.

Congressional Research Service
RL32453 · VERSION 36 · UPDATED
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