If Sue's husband has a Social Security benefit of $2,000, which provision will affect her?

If Sue's husband has a Social Security benefit of $2,000, which provision will affect her?

• A. WEP
• B. GPO
• C. DRO
• D. SSI

Answer: (B)

The provision that will affect Sue in this scenario is the Government Pension Offset (GPO). The GPO specifically addresses how certain government pensions can reduce Social Security benefits for spouses of workers who have received a government pension. If Sue is collecting a spousal benefit based on her husband's Social Security earnings, the GPO could reduce that benefit if she herself draws a pension from a federal, state, or local government job where she did not pay Social Security taxes. The GPO works by reducing the spousal benefit by two-thirds of the amount of the government pension that Sue receives. Therefore, if Sue receives her own government pension, it is essential to consider the implications of the GPO on her potential Social Security benefits linked to her husband's earnings. Other provisions mentioned, such as WEP (Windfall Elimination Provision), DRO (Direct Roll Over), and SSI (Supplemental Security Income), do not pertain specifically to the reduction of spousal benefits based on her husband’s Social Security income in the context described. Therefore, the GPO is the factor that directly impacts Sue’s situation regarding her husband's Social Security benefits.

The provision that will affect Sue in this scenario is the Government Pension Offset (GPO). The GPO specifically addresses how certain government pensions can reduce Social Security benefits for spouses of workers who have received a government pension. If Sue is collecting a spousal benefit based on her husband's Social Security earnings, the GPO could reduce that benefit if she herself draws a pension from a federal, state, or local government job where she did not pay Social Security taxes.

The GPO works by reducing the spousal benefit by two-thirds of the amount of the government pension that Sue receives. Therefore, if Sue receives her own government pension, it is essential to consider the implications of the GPO on her potential Social Security benefits linked to her husband's earnings.

Other provisions mentioned, such as WEP (Windfall Elimination Provision), DRO (Direct Roll Over), and SSI (Supplemental Security Income), do not pertain specifically to the reduction of spousal benefits based on her husband’s Social Security income in the context described. Therefore, the GPO is the factor that directly impacts Sue’s situation regarding her husband's Social Security benefits.