Which of the following best describes the GPO provision?

The GPO, or Government Pension Offset provision, reduces spousal benefits if the individual has a pension from a federal, state, or local government job that did not withhold Social Security taxes. This provision is designed to adjust the spousal benefits given to individuals who may receive a pension that is not covered by Social Security.

For example, if someone is receiving a government pension, the GPO decreases their Social Security spousal benefit by two-thirds of the amount of the government pension they receive. This means that while they are still eligible for some spousal benefits, the total amount they receive will be less than what it would have been without that pension.

Understanding this aspect of the GPO is crucial for advising clients accurately, as many may not be aware that their government pension can affect the spousal benefits they receive.