I'm so sorry to hear about the change in your retirement strategy! The deemed filing rule really did eliminate a lot of flexibility for people in your situation. But don't give up hope yet - there might still be some options worth exploring. Since you're planning to retire at 62 and your own benefit will be higher at 67, you might want to consider: 1. Working part-time until your FRA to avoid the early filing reduction penalties 2. If you do need income before 67, remember that the earnings test goes away completely once you reach FRA, so any benefits withheld due to excess earnings get added back to your future payments 3. Consider doing some Roth conversions now while you're still working and in potentially lower tax brackets, to reduce future RMDs that could push you into higher SS taxation brackets Also, make sure to get an updated benefit estimate from SSA that shows both your own projected benefit and the divorced spousal benefit, so you can see exactly what the numbers look like under deemed filing. The silver lining is that at least you found out about this now and can adjust your planning accordingly!

Just wanted to chime in as someone who went through a similar situation a few years ago. The deemed filing rule really is a game-changer for retirement planning, and it sounds like you're getting great advice here about adapting your strategy. One thing I'd add - when you do get those updated benefit estimates from SSA, pay close attention to your earnings record to make sure it's accurate. I found several years where my earnings weren't properly credited, which would have significantly affected my benefit calculation. You can dispute and correct errors, but it's much easier to do while you're still working and have access to your old tax records. Also, regarding the taxation thresholds that were mentioned earlier - don't forget that those dollar amounts ($25k, $34k, etc.) haven't been adjusted for inflation since they were set in the 1980s! So more and more retirees find themselves paying taxes on their Social Security benefits than was originally intended. Definitely factor that into your withdrawal strategies. The good news is you still have several years to optimize your approach. Take advantage of that time to really understand all your options!

Have you spoken with anyone at CalSTRS about this? When my mother-in-law went through something similar (CA teacher, husband died), a CalSTRS counselor helped her understand all the implications and provided some resources. They can't change the federal law, but they're often more knowledgeable about how it intersects with their pension system than general SSA reps are.

I'm so sorry for your loss and for this additional financial stress during an already difficult time. The GPO situation is unfortunately very real and affects thousands of educators and other public servants. One thing that might help: consider contacting your congressional representatives about this issue. While previous legislation hasn't passed, there's often renewed interest in WEP/GPO reform, especially when constituents share their personal stories. The National Education Association and other teacher unions also maintain advocacy efforts around this issue and might have resources or updates on current legislative efforts. It won't help immediately, but your voice could contribute to future change for others in similar situations.

My sister-in-law just went through this exact situation last year! Her situation was almost identical - teacher pension and husband had claimed early. One thing no one mentioned yet - if your husband's benefit increased due to COLAs over the years since he claimed at 62, those increases ARE included in the survivor benefit calculation. So that might give you a bit more than you're expecting.

I'm dealing with a similar situation as a retired school counselor. One thing that helped me was creating a simple spreadsheet to track all the calculations. I listed my monthly pension amount, multiplied by 2/3 for the GPO reduction, then subtracted that from my estimated survivor benefit. Also, don't forget that if you're not yet receiving your teacher pension when you apply for survivor benefits, the GPO won't apply until you actually start receiving the pension payments. So there might be a window where you get the full survivor benefit before your pension kicks in. The timing can make a real difference in your overall financial planning, especially if you have flexibility in when you start your pension. Good luck navigating this maze!

I've been helping my dad with the exact same situation! For part-time work after you claim, keep in mind that if you're self-employed, SSA looks at both your earnings AND your work activity. Even if you don't pay yourself much, if you're working a lot of hours they can still count it as substantial earnings. This tripped up my dad who continued managing his rental properties after claiming. Just something to consider if your part-time work might involve self-employment.

Just wanted to add one more consideration for your timeline - since you're planning to claim in August 2025, make sure to apply about 3-4 months beforehand (around April/May) to ensure your first payment processes smoothly. SSA recommends applying 3 months before you want benefits to start. Also, when you do apply, specifically mention that you want to use the monthly earnings test for 2025 rather than the annual test. While it should be automatic in your first year, it's worth being explicit about this choice when you speak with the SSA representative to avoid any confusion. Your plan sounds solid - earning whatever you need through August, then keeping part-time work under the monthly limit afterward. The first-year rule really does make mid-year retirement much more feasible!

wait does this new law help people who worked in jobs with pensions AND had some social security covered jobs? my dad worked for the post office for 25 years but also had enough social security credits from earlier jobs but got his SS benefit reduced because of WEP

I'm a retired teacher from Texas and went through a very similar situation. One thing I learned is that your sister should definitely get documentation of her ex-husband's earnings record if possible - this will help her understand what her potential survivor benefit would be before any GPO reduction. Also, since she's 64, she can apply for reduced survivor benefits now (available at 60) or wait until her full retirement age for the maximum amount. Given that the GPO is phasing out, it might make sense to run the numbers both ways. The fact that California teachers don't pay into Social Security actually makes her situation clearer in some ways - there's no WEP issue with her own benefits since she doesn't have any SS benefits of her own, just the GPO issue with survivor benefits. And yes, the current widow doesn't affect her eligibility at all. Both can collect simultaneously.