Saltar al reproductorSaltar al contenido principalSaltar al pie de página
Money Explainers
  • 29/6/2025
A look at three major shifts: Medicaid cuts, Canada's digital tax dispute, and the end of Social Security's GPO. How will these impact you? #EconomicImpact #SocialWelfare#PolicyChanges

Categoría

🗞
Noticias
Transcripción
00:00Good evening, we bring you an important update regarding a significant change to social security
00:05provisions that impacts a specific group of beneficiaries. We're referring to the elimination
00:10of the government pension offset or GPO. This rule was officially removed in January 2025,
00:16marking a notable shift in how spousal and survivor benefits are calculated for those
00:21also receiving a non-social security pension. The GPO was a social security provision that
00:27had the effect of reducing and in some cases, completely eliminating certain American social
00:32security benefits. To understand the GPO, one must first grasp social security's spousal and
00:39survivor benefits. These benefits are designed to pay eligible individuals a portion of their
00:44spouse's full social security benefits. This legislative change was a direct response to a
00:50Supreme Court ruling in Califano v. Goldfarb in 1977, which deemed a sex-based distinction in
00:57survivor benefits unconstitutional. However, this was heavily criticized, and the reduction was
01:03later changed to two-thirds of the non-covered government pension. For example, if someone
01:08received a monthly non-covered pension of $1,200, two-thirds or $800 would be deducted from their
01:16spousal benefit. If their spousal benefit was $1,000, they would then receive $200 from social security.
01:22It's crucial to note that if this reduction amount was higher than the monthly social security benefit,
01:28the individual might not have received any social security benefits at all. Previously,
01:33men had to prove financial dependence on their deceased wives to receive survivor benefits.
01:39While women did not have to prove dependence on their husbands, while both involved pensions and
01:43reductions in social security payments, as of December 2023, approximately 1% of all social
01:50security beneficiaries had their benefits reduced by the GPO, with spouses and widows, widowers equally
01:57affected. This raised concerns about fairness, as these workers were receiving pensions without
02:03having paid social security taxes on those government earnings, and it added hundreds of millions of
02:08dollars to the program's annual cost. Congress thus created the GPO to ensure that individuals
02:15receiving pensions from non-covered government employment would not receive full social security
02:20spousal and survivor benefits. For spousal benefits, the maximum amount is 50% of the spouse's full
02:27retirement age benefit, also known as the primary insurance amount, or PI. Survivor benefits,
02:33conversely, can go up to 100% of the PI. These benefits are particularly vital for individuals,
02:40who either do not qualify for social security on their own, or would only receive a very modest
02:45amount. The GPO specifically impacted the social security spousal or survivor benefits of most workers
02:51who receive federal, state and local pensions from employment not covered by social security.
02:57The origin of the GPO dates back to the social security amendments of 1977.
03:01The Supreme Court's decision meant that hundreds of thousands of retired men who had worked in
03:06government positions not covered by social security, suddenly qualified for spousal or
03:11widower benefits. Initially, the GPO completely offset social security spousal benefits by 100%
03:18of the non-covered government pension. It is also important to clarify that the GPO is distinct
03:23from the windfall elimination provision. WEP could affect individuals receiving both a non-covered pension
03:29and social security retirement or disability benefits. GPO specifically applied to those
03:35receiving a government pension alongside social security, spousal or survivor benefits. A key
03:42difference is that WEP could not completely eliminate a person's benefits, whereas GPO could. With the removal
03:49of the GPO in January 2025, eligible individuals previously affected by this offset will now see their social
03:56security spousal and survivor benefits calculated without this specific reduction. We will continue to
04:03follow the implications of this and other social security updates. That's our report for tonight.
04:09money expo-
04:09money expo-

Recomendada

0:17
Próximamente
Creative way to hold the tape in place 🔧
MetDaan Creative
hace 4 días
2:12
The End of Social Security Taxes?
Money Explainers
18/6/2025
0:42
Social Security Cuts May Hit By 2032 Due To 'Big Beautiful Bill'
Benzinga
hace 6 días
6:40
The Social Security Countdown: Are You Ready for 2034?
Money Explainers
10/7/2025
3:50
Social Security's Future: A Looming Challenge and Unexpected Relief
Money Explainers
18/6/2025
0:54
Social Security And Medicare Funds Could Run Dry Earlier Than Expected, New Report Shows
Benzinga
20/6/2025
2:49
Social Security's Double-Edged Sword: Tax Breaks Now, Cuts Later?
Money Explainers
10/7/2025
2:02
Veteran analyst makes crucial Social Security prediction
The Street
6/3/2025
4:43
"The Big Beautiful Bill": A Double-Edged Sword for Seniors
Money Explainers
10/7/2025
1:44
Tips and tricks to elevate your day-to-day life!😍
MetDaan Creative
hace 3 días
0:15
Smart putty hack for cement work
MetDaan Creative
hace 5 días
2:24
El Increíble Secreto Oculto en Cada Higo
Money Explainers
ayer
1:58
The Hidden Secret of Every Fig You Eat
Money Explainers
ayer
6:04
The Ocean's Secret: How Millions of Fish Move as One Superorganism
Money Explainers
ayer
4:43
El Gran Secreto del Océano: ¿Cómo Millones de Peces Nadan Como Un Solo Ser?
Money Explainers
ayer
1:42
Urgent Coffee Recall: Check Your Piñon Pods Now!
Money Explainers
anteayer
4:25
La Danza Silenciosa Amenazada: El Impacto Humano en los Cardúmenes
Money Explainers
anteayer
3:39
The Silent Symphony Under Threat: How Human Noise Disrupts Fish Schools
Money Explainers
anteayer
5:50
Breaking News: The Real Tax Story – What's Coming in 2025
Money Explainers
anteayer
3:28
Ganymede's Grand Reshuffle: A Cosmic Detective Story
Money Explainers
anteayer
2:42
Costco Redefine su Futuro: La Estrategia Tecnológica que Nace en India
Money Explainers
anteayer
4:28
Unleashed Tariffs: Trump's Scotland Deal Reshapes Global Trade
Money Explainers
hace 3 días
7:14
Decodificando el Coro del Amanecer: El Lenguaje Secreto de las Aves
Money Explainers
hace 3 días
3:53
Cracking the Code: The Secret Language of Birds
Money Explainers
hace 3 días
7:02
¡Asombroso Descubrimiento! El Secreto Oculto Tras el Vibrante Plumaje de las Aves y su Potencial Tecnológico
Money Explainers
hace 3 días