Ask Larry

Can I Avoid the GPO By Suspending My Retirement Benefit?

I turned 66 March of 2016. I was receiving SSD and it was automatically turned into my social security retirement benefit at that time. I am going through post maintenance review. And my benefits of $1,992 per month is being calculated as income and is causing me to have to pay $1,700 a month because I have additional income from my state pension which is 4300 a month in the 1700 was being taken out of it. Can I suspend my social security benefits to age 70. And would I than be eligible for a maintenance modification to reduce the amount of Maintenance that I will have to pay. Because she is getting practically all of my social security benefits now.

Dear Sir,

You can suspend your retirement benefit now and restart it at 70 at a roughly 30 percent larger value. I don't know about your divorce maintenance payment modification. It could be affected. the $1,700 is the Government Pension Offset. If your non-covered pension is fixed in nominal terms, waiting till 70 can help you avoid the GPO to an extent that depends on the degree of inflation. If inflation is high and your non-covered pension is not indexed, it could certainly help to wait. Our software program lets you consider alternative rates of inflation and whether or not your non-covered pension is indexed or not to inflation. So take a look at this via the program.

best, Larry

Jun 17 2016 - 6:15pm
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