"The repeal of the Government Pension Offset means that a spouse can now receive up to 50% of the higher earner's full retirement benefit without any pension deduction, which was previously a significant barrier for public employees."
"Survivor benefits can range from 71.5% to 100% of the deceased spouse's benefit, and the amount inherited is based on what the higher earner was actually receiving at the time of death."
The Social Security Fairness Act, signed into law on January 5, 2025, repealed provisions that had negatively affected benefits for over 2.8 million public employees. The repeal of the Government Pension Offset allows spouses to receive full spousal benefits without deductions. This change is crucial for those who previously did not apply for spousal benefits due to the offset. Additionally, the claiming age of the higher earner now significantly impacts survivor benefits, as early claiming can reduce the amount inherited by the surviving spouse.
Read at 24/7 Wall St.
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