I am about to chose a retirement payout option from an IPERS teaching job where I did not pay FICA. I have 35 years of earnings where I paid FICA tax so my monthly retirement income should not affect my SSI benefit. I am worried that if I chose a retirement option to give my wife a survivors monthly pension that it may reduce her SS benefit because she only has 10 years of FICA covered and 5 years of non FICA covered employment. Will my wife get hit by the WEP as my survivor?

Hi,

No, neither WEP (Windfall Elimination Provision) nor GPO (Government Pension Offset) will affect your wife's Social Security benefits if she receives a survivor benefit from your teacher's pension plan. This is true regardless of whether she is receiving Social Security from her own account, or as a widow on your record. But, if WEP reduces your Social Security benefit rate, it would also affect spousal benefits payable on your account while you are living. If you have at least 30 years of 'substantial earnings' on which you paid Social Security taxes, though, you'll be exempt from WEP.

Both WEP and GPO only affect people receiving pensions based on their own work outside of the Social Security system. If someone receives a pension based on someone else's work (e.g. spousal, survivor) outside of Social Security, it has no bearing on any type of Social Security benefit for which they are eligible. For more information on WEP and GPO, refer to the following pamphlets: https://www.ssa.gov/pubs/EN-05-10045.pdf & https://www.ssa.gov/pubs/EN-05-10007.pdf.

Best, Jerry