Can TRS Members Claim Spousal Benefits While Still Working?

If a person is still working and is paying into TRS (Teacher Retirement System of Texas), they cannot not take spousal or ex-spousal benefits? A new client thinks she can take her ex-spouse benefits while working and not receiving the government pension. She is FRA.

Your new client can indeed take spousal or ex-spousal benefits while still working and paying into the Teacher Retirement System (TRS) of Texas. Here’s what to consider:

1. Government Pension Offset (GPO):

   • GPO Activation: The Government Pension Offset (GPO) does not take effect until your client retires and begins receiving a government pension. Therefore, since she is still working and not yet drawing her TRS pension, she can file for spousal or ex-spousal benefits without being affected by the GPO.

2. Filing for Spousal or Ex-Spousal Benefits:

   • Eligibility to File: As your client is at Full Retirement Age (FRA), she is eligible to file for spousal or ex-spousal benefits while continuing to work. The earnings test, which could reduce benefits based on income, does not apply once a person reaches FRA.

3. No Impact from Earnings:

   • Earnings Test: Since your client is at FRA, there’s no reduction in her Social Security benefits based on her current earnings. She can continue to work and receive the full spousal or ex-spousal benefit amount.

In summary, your client can confidently file for spousal or ex-spousal benefits while still working and paying into TRS, as the GPO will only apply once she retires and starts receiving her government pension.

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