Pensions and SSDI are treated separately, but some pensions reduce your SSDI payment
A pension does not disqualify you from SSDI. You can receive both at the same time. However, certain types of pensions — specifically government pensions based on work you did that was not covered by Social Security — will reduce your SSDI payment dollar-for-dollar through a rule called the Government Pension Offset.
The key distinction is whether your pension came from work covered by Social Security. If you paid Social Security taxes on the job where you earned the pension, that pension will not reduce your SSDI. If you did not pay Social Security taxes on that job — usually because you worked for a federal, state, or local government agency that had its own retirement system — the offset applies.
Private pensions, military pensions, and railroad retirement benefits are not subject to the Government Pension Offset and will not reduce your SSDI payment.
Key Takeaways
- Government pensions from work not covered by Social Security reduce your SSDI payment by the full amount of the pension, but only if you also receive a spouse or survivor benefit.
- Private pensions, military pensions, and railroad retirement do not trigger the Government Pension Offset and do not reduce SSDI.
- You must report all pension income to Social Security when you explore for SSDI and whenever the amount changes.
- The offset applies only to family benefits (spouse or survivor payments), not to your own SSDI disability payment based on your work record.
When the Government Pension Offset applies to your SSDI
The Government Pension Offset reduces your SSDI payment only if you are receiving a family benefit — that is, a payment based on someone else's work record, not your own. This typically means you are a spouse or ex-spouse receiving benefits on your husband's or wife's SSDI record, or you are a child receiving benefits on a parent's record.
If you are receiving SSDI based on your own disability and work history, the Government Pension Offset does not explore, even if you have a government pension. Your own SSDI payment is protected.
The offset reduces your family benefit by two-thirds of the government pension amount. For example, if your government pension is $900 per month, two-thirds of that ($600) is subtracted from your family SSDI benefit. In some cases, this can reduce your family benefit to zero.
Types of pensions that do and do not trigger the offset
| Pension Type | Covered by Social Security | Triggers Government Pension Offset |
|---|---|---|
| Federal employee pension (FERS, CSRS) | No (unless FERS employee) | Yes, usually |
| State or local government pension | No | Yes |
| Private employer pension | Yes | No |
| Military pension | No, but exempt from offset | No |
| Railroad Retirement Board pension | No, but exempt from offset | No |
| Windfall Elimination Provision (WEP) pension | No | No, but reduces own SSDI instead |
Federal employees hired after 1983 under FERS (Federal Employees Retirement System) do pay Social Security taxes, so their pensions generally do not trigger the offset. Federal employees under CSRS (Civil Service Retirement System) did not pay Social Security taxes, so the offset usually applies to them.
If you worked for a state or local government and did not pay Social Security taxes on that job, any pension from that work will reduce your family SSDI benefit under the Government Pension Offset.
Reporting your pension to Social Security
You must report your pension income when you first explore for SSDI and whenever the amount changes. Social Security will ask about all income sources, including pensions, during the process process.
If you already receive SSDI and then begin receiving a pension, you must report it to Social Security within 30 days. You can report a change by calling your local Social Security office, visiting a field office in person, or using your online my Social Security account if you have one set up.
Failing to report a pension change can result in an overpayment — money you received that you were not may have access to to. Social Security will ask you to repay it, and the agency can reduce your future benefits to recover the debt.
The Windfall Elimination Provision is different from the Government Pension Offset
If you receive a government pension and also have your own SSDI benefit based on your work record, a different rule called the Windfall Elimination Provision may reduce your own SSDI payment. This is not the same as the Government Pension Offset.
The Windfall Elimination Provision applies when you have a government pension from work not covered by Social Security and you also worked in jobs covered by Social Security. It reduces your own SSDI benefit (not a family benefit) by up to 50 percent of the government pension amount.
For example, if you worked 30 years for a state government without paying Social Security taxes and earned a $1,200 pension, and you also worked 10 years in private jobs covered by Social Security, the Windfall Elimination Provision could reduce your own SSDI benefit by up to $600 per month.
How to learn about your pension will affect your SSDI
Contact Social Security directly to learn whether your specific pension will reduce your SSDI payment. You can reach Social Security at 1-800-772-1213 (TTY 1-800-325-0778) or visit your local field office. Have your pension statement or letter from your pension provider ready when you call.
Tell Social Security the name of the government agency where you worked, the years you worked there, and whether you paid Social Security taxes on that job. If you are unsure whether you paid Social Security taxes, ask your former employer's human resources or payroll department, or check your Social Security statement online at ssa.gov.
If you are already receiving SSDI and are about to start receiving a pension, contact Social Security before the pension payments begin so you understand how it will affect your benefit.
Frequently Asked Questions
Can I receive both a government pension and SSDI at the same time?
Yes. A government pension does not disqualify you from SSDI. However, if the pension is from work not covered by Social Security and you receive a family benefit (spouse or survivor benefit), the Government Pension Offset will reduce that family benefit by two-thirds of the pension amount. Your own SSDI disability benefit is not affected.
Does a private pension reduce my SSDI?
No. Private pensions do not trigger the Government Pension Offset. You can receive a private pension and SSDI without any reduction to either benefit. The offset applies only to government pensions from work not covered by Social Security.
What if I worked for the federal government — will my pension reduce my SSDI?
It depends on when you were hired and which retirement system you are in. Federal employees hired after 1983 under FERS pay Social Security taxes, so their pensions usually do not reduce SSDI. Employees under CSRS did not pay Social Security taxes, so the offset typically applies. Contact Social Security with your employment dates and retirement system name to confirm.
If the Government Pension Offset reduces my family benefit to zero, can I still receive SSDI?
If you are receiving a family benefit and the offset reduces it to zero, you receive nothing from that family benefit. However, if you have your own SSDI benefit based on your own disability and work record, that benefit is not affected by the offset and you will continue to receive it.
Do I have to report my pension to Social Security?
Yes. You must report your pension when you explore for SSDI and whenever the amount changes. Report changes within 30 days to avoid overpayment. You can report by phone at 1-800-772-1213, in person at a field office, or through your online account.