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Can a CSRS Retiree Collect Spousal Social Security?
By SmartAsset Team,
1 day ago
Determining whether a Civil Service Retirement System (CSRS) retiree can collect spousal Social Security benefits isn't always easy. Typically, because those under CSRS do not pay into Social Security, they are ineligible for certain benefits and may wish to consult a financial advisor to develop a comprehensive retirement strategy.
What Is the Civil Service Retirement System (CSRS)?
The CSRS is the retirement plan established for federal employees who began their careers before 1984. It was replaced by the Federal Employees Retirement System (FERS) in 1986; however, more than one million people currently collect benefits under CSRS.
Unlike FERS, which includes Social Security benefits , CSRS is a standalone system that provides pension benefits directly from the federal government. Federal employees enrolled in CSRS contribute a portion of their salary to the retirement system throughout their careers. Typically, employees contribute at least 7% of their pay to CSRS. In return, they do not pay Social Security taxes, which is a key distinction between CSRS and other retirement plans like FERS.
CSRS offers a defined benefit pension plan, which means that retirees receive a guaranteed monthly pension. The pension is calculated using a formula that takes into account the employee's length of service and average salary.
Can a CSRS Retiree Collect Spousal Benefits?
The most significant factor affecting a CSRS retiree's eligibility for spousal Social Security benefits is the government pension offset (GPO) . The GPO reduces the spousal or survivor benefits a CSRS retiree can receive by two-thirds of their CSRS pension. For example, if a retiree receives $1,500 per month from their CSRS pension, their Social Security spousal benefits would be reduced by $1,000 and they would get any remaining funds.
There are limited exceptions to the GPO. For example, if a CSRS retiree worked for a government agency for their last five years of federal service, but had a job that was covered by Social Security before that, the GPO might not apply. Additionally, if the retiree had enough credits from other employment outside of their federal service, they could qualify for Social Security benefits based on that work, independent of their CSRS pension.
What About the Windfall Elimination Provision?
The windfall elimination provision (WEP) primarily affects individuals who both qualify for Social Security benefits based on work outside the government and receive a pension from a job that did not pay into Social Security, like a CSRS pension, other government agency or foreign employment.
The WEP is calculated based on how much you earned, how many years you worked and how much you paid into Social Security. While the WEP can reduce benefits from someone who gets a pension that did not pay Social Security taxes, it does not affect spousal benefits as these are subject to the GPO.
How Are Social Security Spousal Benefits Calculated?
People who claim spousal Social Security benefits can get up to 50% of their partner’s full retirement benefit. To qualify, the spouse must be at least 62 years old, although there is no age limit if they are caring for a child under 16 or disabled. Importantly, spousal benefits do not reduce the working spouse’s Social Security benefits-they are an additional benefit based on the working spouse’s record.
The spousal benefit amount is based on the working spouse’s primary insurance amount (PIA), which is the benefit they are entitled to at full retirement age. If both spouses worked and are eligible for a Social Security benefit, the non-working or lower-earning spouse will receive the highest one. If this spouse claims benefits before their full retirement age, the benefit will be reduced. However, delaying benefits beyond full retirement age does not increase them.
Bottom Line
A CSRS retiree can collect Social Security spousal benefits, but these are typically reduced by the GPO. The GPO reduces Social Security spousal or survivor benefits by two-thirds of the government pension that a retiree receives from employment not covered by Social Security. If the GPO fully offsets the spousal benefits, the retiree may receive little to no Social Security from their spouse’s earnings.
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