Larry,
In May 2019 I will turn 66 years old and do not plan to retire until May 2023, age 70. My retirement will consist of Social Security (I currently work at a private college and have taxed social security earnings) and a small teacher retirement (13 years as an elementary school teacher). The teacher retirement will be subject to a WEP reduction.

My goal is to receive the 50% spousal benefit and avoid the GPO from ages 66 - 70, and then only have the WEP reduction to my own Social Security benefit to begin at age 70 (WEP - my teacher retirement).

I want to maximize my retirement by setting this my plan in stages, and would like to know if my plan is accurate and best, based on what I have read from your valuable knowledge about Social Security.

Background factors:
1. Married 12 years and divorced. Ex-husband's income consistently and substantially higher than mine.
2. 2019: 20 years of substantial earnings with Social Security and plan to retire at 70 with 24 years of substantial earnings. Current SS statement shows estimated monthly SS retirement of $1,608/month and at age 70 $2,455/month
3. Public School teacher for 13 years with retirement but creates Social Security subject to WEP. I have not started/do not receive the retirement and plan to wait until 2023 at age 70 (although eligible now - estimated at $1,400 month)
4. May 2019 plan to file to qualify for a restricted application and receive 50% of ex-husband's Social Security benefit - I turn 66 in May and he turns 66 in October (does his birth month - 5 months after mine - impact when I can receive the 50% spousal benefit?)

I have read that if in your prior answers that neither a WEP or GPO would apply until I file for my non-covered pension, and that I could file first for spousal benefits (age 66, May 2019), and later file for my own retirement benefits when I start drawing my non-covered pension.

Is this the best path and is what I have detailed accurate. The Social Security representatives seem to have varying understanding of WEP and GPO, but what I have read leads me to understand that the GPO would not apply as long as I am not receiving my teacher retirement.

Please advise.

Thank you,
Beth

Hi Beth,

Your plan sounds doable, but I can't say for sure that it's your best possible overall strategy. It's true that your Social Security benefits would not be subject to reduction from either the WEP (Windfall Elimination Provision) or GPO (Government Pension Offset) provisions until you actually claim those benefits, however, that's probably not a good reason to delay filing for your teacher's pension unless you will be due a higher pension rate if you defer filing until a later age.

For example, say Jane files for divorced spousal benefits at full retirement age (FRA) and her unreduced benefit rate is $1000. Jane also receives a teacher's pension of $1200 which is based on earnings that weren't subject to Social Security taxes. As a result of the GPO provision, Jane's divorced spousal benefits would be reduced by $800 (i.e. 2/3rd of her teacher's pension), leaving her with a divorced spousal benefit of $200 (i.e. $1000 - $800). However, by receiving both benefits instead of just her divorced spousal benefit, Jane receives a net total of $400 more per month (i.e. $1400 vs. $1000).

On the other hand if Jane in the above example could receive a higher teacher's pension rate if she defers filing to a later age, then it may make sense for her to delay claiming her teacher's pension.

The difference in your age and your ex's age wouldn't affect your potential divorced spousal rate. As long as he's at least age 62, you should qualify for 50% of his primary insurance amount (PIA) effective with the month you reach your FRA of 66 as long as your ex is either drawing his benefits or if you've been divorced for at least 2 years.

Our software is fully programmed to handle both the WEP and GPO provisions, so you should strongly consider using it to compare your various options and determine your best overall strategy for claiming your benefits.

Best, Jerry