INDIANA — Beneficiaries who receive a government pension from work not covered by Social Security taxes—and who have recently received an overpayment notice from the Social Security Administration (SSA)—should pay close attention to the exact dates of the benefits in question, according to Russell Gloor, a Social Security Advisor with the Association of Mature American Citizens (AMAC) Foundation.
The guidance comes in response to a common scenario facing retirees who receive a “non-covered” government pension alongside Social Security spousal or survivor benefits. In a recent case highlighted by the AMAC Foundation, a beneficiary received a notice demanding repayment of over $12,000, with the agency stating that benefits are reduced by two-thirds of a government pension and that the recipient’s benefit fell below that threshold.
Gloor explained that this calculation stems from a former rule known as the Government Pension Offset (GPO). Under the GPO, Social Security spousal or survivor benefits were reduced—or entirely eliminated—if the recipient also collected a pension from a government job where they did not pay Social Security taxes. Overpayments typically occurred when the SSA paid full benefits without initially factoring in the non-covered pension.
However, Gloor noted a critical distinction for beneficiaries navigating these notices today: the GPO rule was officially repealed in January 2025, with legislation making the repeal retroactive to January 2024.
Because of this timeline, the validity of a GPO-related overpayment notice hinges entirely on when the benefits were issued:
- Benefits received prior to 2024: If the overpayment notice applies to spousal or survivor benefits paid before January 2024 while the recipient was collecting a non-covered government pension, the GPO was still in effect, meaning the overpayment notice is likely valid and must be repaid.
- Benefits received after December 2023: If the notice seeks to claw back benefits paid in 2024 or later, it is likely in error, as the GPO no longer applies.
For retirees who are unsure which timeframe their notice covers or who believe the assessment is incorrect, Gloor recommends filing a formal appeal with the Social Security Administration by submitting a “Request for Reconsideration” (Form SSA-561). Filing the form triggers an independent internal review to determine whether the beneficiary is legally obligated to repay the funds, owes a reduced amount, or owes nothing at all.
The AMAC Foundation, a non-profit organization dedicated to supporting and educating seniors, provides informational resources on Social Security rules through its accredited advisors. For more information or to submit a question, individuals can visit amacfoundation.org/services or email ssadvisor@amacfoundation.org.
