Dually Entitled Beneficiaries Who Are Subject to the Windfall Elimination Provision and Government Pension Offset

Date: 
Thursday, January 31, 2013
Management Issue: 
Reduce Improper Payments and Increase Overpayment Recoveries
Report Number: 
A-09-12-11210
Report Type: 
Audit Report
Office Affiliation: 
The Office of Audit

The Social Security Act includes two provisions that reduce Social Security monthly benefits paid to individuals who receive a pension based on Federal, State, or local government employment not covered by Social Security:

  • The Windfall Elimination Provision uses a modified benefit formula to eliminate "windfall" from a wage earner's monthly Social Security retirement benefit.
  • The Government Pension Offset reduces monthly Social Security benefits for spouses, divorced spouses, and widows who receive a pension based on employment for a Federal, State, or local government not covered by Social Security.