... the Government Pension Offset should be implicated to reduce or prevent a double taking of 2 government pensions, your own AND a dependent benefit such as a survivor benefit. Typically, this means that they take a figure/amount equal to 2/3 of your government pension (whatever the monthly amount was equal to before you lump summed it for a pay out) and subtract if from your survivor benefit. You haven't given me these figures, so I can't estimate what this would be. BUT, I can say this: You have not yet taken a survivor benefit yet, but when we do take before our full retirement age (66+), it is REDUCED, just like our own is. So, say at 63, it is reduced by 15% - your survivor benefit is. If his benefit was $600/mo, your survivor benefit would be, ball park, 600-90 - $510. If your Government pension was is 500/mo, 2/3 of that is 333. Take 333 from you survivor benefit, 510 - 333 = 177 in survivor benefit. THis is LESS than your own benefit of $550, so you would NOT want to switch to it - remember, we can only have 1 benefit AMOUNT from SS, and we tend to pick the highest, obviously. Now the number used above are just guess work, but that is generally how it works.
The question then is, will the survivor benefit some day be enough so that when you subtract the 2/3 of your pension, there is an amount better than your current $550. THe survivor benefit, will be at its max at age 66 (FRA) - the SSA seems to be suggesting that at its FULL MAX amount, you will have something to collect..... it may be SMALL, but if it is bigger than your $550, you can change to it.