Home > For Campus Employees > Optional Retirement Program > Drawing Benefits > Social Security Offsets

Social Security Offsets

The Social Security Administration applies offsets to benefits for public employers' pensions which do not participate in the SSA. This applies to both the ORP and to SERS. The offset is applied to ORP benefits under two programs, the Windfall Elimination Provision, and the Government Pension Offset.

Windfall Elimination Provision
The Windfall Elimination Provision is an offset of an ORP Participant's state pension benefits. The Social Security Administration will use an ORP Participant's total ORP account balance on the date the participant terminates employment with the Commonwealth to determine the state pension amount to offset. The Social Security Administration converts this balance into an estimated monthly income, which is used to adjust the Social Security Administration's Monthly Income (AIME). Finally, the Social Security Administration's income replacement ratios are reduced when applied to the AIME.

Government Pension Offset
The Government Pension Offset (GPO) may be applied to any Social Security Administration benefits that an ORP participant is eligible to draw under the spouse’s Social Security earnings record. The Social Security Administration will use an ORP Participant's total ORP account balance on the date the participant terminates employment with the Commonwealth to determine the amount of state pension to offset. The Social Security Administration converts the participant's termination date account balance into an estimated monthly income.

The Plan Administrator will provide a statement of participation in the ORP; the account balance on the participant's day of terminated employment with the Commonwealth; and a confirmation of ORP Provider. This information is provided to participants who have terminated employment and attained age 62. This information must be presented to the Social Security Administration Representative handling the application for Social Security benefits.

In cases where ORP participants have terminated employment and returned to work for the Commonwealth at a later date, the Plan Administrator will update the records and provide a new set of information following the next termination date.