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- Federated Benefits Fact Sheet - Tier 1 (Effective 6/22/14) (File Size: 91kb)
- Federated Benefits Fact Sheet - Tier 2 (Effective 6/22/14) (File Size: 203kb)
- Federated Benefits Fact Sheet - Tier 2B (Effective 6/22/14) (File Size: 201kb)
- IRC 415(b) Benefit Limit Information (File Size: 170kb)
- Federated 115 Trust (File Size: 66kb)
- Return of Contributions (ROC) Fact Sheet (File Size: 73kb)
The pension that is received from a governmental agency such as the
City of San José, may reduce any Social Security benefits you
are eligible for, either through your previous employment in a job where
you did contribute to Social Security or through the spouse's or widow's
There are two laws that may reduce your benefits. They are the:
1.) Windfall Elimination Provision - This provision affects
the way your Social Security or disability benefits are figured if
you also receive a pension from the City of San José.
2.) Governmental Pension Offset - This offset affects Social
Security benefits that you may receive as a spouse or widow of a Social
Security recipient. In other words, if you are eligible to receive
Social Security benefits because you have or had a spouse who paid
into the Social Security system, the pension you receive will be reduced
if you also receive a pension from the City of San José.
The purpose of Social Security spouse's or widows benefit is to provide income
to wives or husbands who have no Social Security benefits on their own. It
was intended for husbands and wives who were financially dependent on their
spouses. Without the offset a person who qualified for a governmental pension,
such as San José's retirement plans, was also eligible to collect
from Social Security even though they were not dependent on their husband
WHO IS AFFECTED BY THE OFFSET
All retirees who receive a monthly allowance from the City of San José and
are also eligible to receive Social Security benefits because they are a widow
or spouse of a Social Security recipient are affected.
However, the following individuals would be exempt from the offset.
- Anyone who received or who was eligible to receive the governmental pension
before December 1982 and who meets all the requirements of Social Security
spouse's's benefits in effect in January 1977. (This includes divorced woman
whose marriage lasted at least 20 years and a husband or widower who received
1/2 of his support from his spouse.)
- Anyone who received or was eligible to receive a Federal, State or local
government pension before July 1, 1983 and was receiving 1/2 of their support
from her or his spouse.
HOW MUCH THE OFFSET WILL BE
The amount of your Social Security spouse's or widow's benefit will be reduced
2/3 of the amount of your San José pension. For example, if you receive
$1,200 monthly from San José, 2/3 of that or $800 will be subtracted
from the amount that you receive from Social Security. If you are eligible
to receive $900 for a widow's benefit, you will only get $100 from Social Security
because of the offset. (900-800=100).
This offset will not affect Medicare benefits at age 65 if you receive them
under your spouse's record.