MainePERS retirees are impacted by the GPO due to the fact that the State of Maine does not participate in the federal Social Security System.
The GPO impacts spouses, widowers, and widowers who receive monthly MainePERS pensions they have earned. If the person is a beneficiary, the GPO does not apply to them.
For survivors who are MainePERS recipients based on their earnings (not a spouse) 2/3 of your MainePERS pension amount will be reduced from your Social Security survivor’s benefit. Social Security survivor’s benefits are ½ of the Social Security worker’s benefit.
EXAMPLE 1:
- Spouse receives $1,500 in Social Security benefit
- Your MainePERS pension is $1,000 per month
- Spouse passes away
- Social Security survivor’s benefit would be $750 per month
- Minus 2/3 of MainePERS pension ($1,000 x .67) = $660
SS Survivors Benefit = $90
EXAMPLE 2:
- Spouse receives $1,500 in Social Security benefit
- Your MainePERS pension is $1,750 per month
- Spouse passes away
- Social Security benefit would be $750 per month
- Minus 2/3 of MainePERS pension ($1,750 x .67) = $1,155
SS Survivors Benefit = $0
If the MainePERS pension was “earned” by your spouse, the GPO does not affect your Social Security benefit.
http://www.ssa.gov/planners/retire/gpo.html
https://www.ssa.gov/pubs/EN-05-10007.pdf
https://www.ssa.gov/benefits/retirement/planner/gpo-calc.html