Husband will be 62 and will collect as he has been laid off for 7 years getting sporadic work. I am working and will be 60. We have gone through much of our saving to make ends meet and I'm not sure what we can do. I will have a small pension from PERS in California and I wanted to know if there is a reduction in my SS benefits because of my pension. Any guidance would help as we are just about in panic mode. Thank you

Hi,

Yes, if the earnings on which your PERS pension is based were exempt from Social Security taxes, it will likely cause a reduction in your Social Security benefit rate. The provisions potentially involved are the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) provision. WEP can affect benefits payable on your own record, while GPO can affect spousal or widow's benefits. For more information on these provisions, refer to Social Security's website: https://www.ssa.gov/pubs/EN-05-10045.pdf & https://www.ssa.gov/pubs/EN-05-10007.pdf.

You may want to run the maximization software available on this website in order to explore your filing options, and to find out what effect the above provisions are likely to have on your future benefits.

Best, Jerry