There is a required priority order for applying terminations, reductions, deductions,
and withholding events to monthly title II benefits. Apply GPO in the order of priority
according to GN 02602.025.
The GPO reduction also applies to the spouse’s benefit payable after age reduction,
if applicable. For information about age reduction for a spouse or a widow(er), see
RS 00615.201 or RS 00615.301.
The title II systems’ program applies the GPO as described directly below.
1. Spouse not entitled on own social security number (SSN)
If the spouse is not entitled to retirement or disability benefits on their own SSN,
calculate the GPO amount and subtract it from the benefit payable as a spouse. For
information about how to calculate the GPO amount, see GN 02608.100D.
2. Spouse is entitled on own SSN
If a spouse is entitled to retirement or disability benefits on their own SSN, they
receive the retirement or disability benefit plus the difference (i.e., excess spouse’s
benefit) between that benefit and the spouse’s benefit. For information about the
amount of a retirement and spouse’s benefit, see RS 00201.002 and RS 00202.020 respectively. However, we apply GPO only to the excess spouse’s benefit as shown
in the following steps:
-
a.
Determine the spouse’s own retirement or disability benefit.
-
b.
Determine the benefit amount as a spouse.
-
c.
Calculate the excess spouse’s benefit payable. For information about calculating the
excess spouse’s benefit payable, see RS 00615.000.
-
d.
Calculate the GPO amount – 2/3 of pension.
-
e.
Subtract the GPO amount from the excess spouse’s benefit payable and round down to
the nearest dollar to determine the benefit payable as a spouse.
-
f.
Add the retirement or disability benefit to the benefit payable as a spouse for the
total benefit payable (TBP).
Example: The spouse’s own retirement benefit at Full Retirement Age (FRA) is $500.00; the
spouse’s benefit at FRA is $1200.00. The pension amount is $600.10. The GPO amount
is $400.10. For an explanation of FRA, see RS 00615.003.
|
Step
|
Calculation
|
Benefit Payable
|
|
a
|
$500.00
|
$500.00
|
|
b
|
$1200.00
|
|
|
c
|
$1200.00 - $500.00 = $700.00 (excess spouse’s benefit payable)
|
|
|
d
|
$600.10 x 2/3 = $400.10
|
|
|
e
|
$700.00-$400.10 = $299.90
|
$299.00
|
|
f
|
$500.00 + $299.00
|
$799.00 (TBP)
|
3. Claimant is entitled as a spouse on one SSN and as a widow (er) on another SSN
If the spouse is also entitled as a widow(er) on another SSN, the pension may offset
one or both benefits. To determine the amount of the benefit payable as a spouse and
as a widow(er) apply the GPO as shown in the following steps:
-
a.
Subtract the GPO amount from the widow(er) benefit first to determine the benefit
payable as a widow(er). If the result ends in total GPO of the widow(er)’s benefit,
there may be an additional amount left that would then be used to offset the excess
spouse’s benefit.
-
b.
Calculate the excess spouse’s benefit payable. For information about calculating the
excess spouse’s benefit payable, see RS 00615.000.
-
c.
Subtract any remaining amount of the GPO in step a. from the excess spouse’s benefit
to determine the benefit payable as a spouse.
Example 1: The widow(er) benefit at FRA is $391.20; the spouse’s benefit at FRA is $741.20.
The pension amount is $600.84. The GPO amount is $400.60.
|
Step
|
Calculation
|
Benefit Payable on Each Record
|
|
a
|
$391.20-$400.60 = -$9.40 (remaining GPO amount)
|
$0.00
|
|
b
|
$741.20-$391.20 = $350.00 (excess spouse’s benefit payable)
|
|
|
c
|
$350.00 - $9.40 = $340.60
|
$340.60
|
Example 2: The widow(er) benefit at FRA is $547.10; the spouse benefit at FRA is $715.50. The
pension amount is $573.63. The GPO amount is $382.50. If the GPO amount is totally
used to offset the widow(er)’s benefit, then subtract “0” from the excess spouse’s
benefit.
|
Step
|
Calculation
|
Benefit Payable on Each Record
|
|
a
|
$547.10 - $382.50 = $164.60
|
$164.60
|
|
b
|
$715.50 - $547.10 = $168.40 (excess spouse’s benefit payable)
|
|
|
c
|
$168.40 – 0 = $168.40
|
$168.40
|