Good afternoon Paul,
I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today.
When a person who is receiving, or eligible to receive, a social security benefit and they also have a government pension, social security will reduce benefit based on the amount paid by the pension. In the event that a lump sum is received, social security averages that distribution over the expected lifespan of the beneficiary.
In your wife's situation the $30,000 will be divided by the estimated life expectancy. Let's say that she is 66 now and the estimated life expectancy is to age 79---a total of 13 years. Social security divides the $30,000 by 13 years and then that number by 12 months in a year to get an average monthly PERA benefit of about $192. Social security will deduct about 50% of that from any social security benefit she would be entitled to.
So, if you wife takes a spouse benefit and receives half of your full retirement age benefits, social security will deduct about 50% of the $192, or $96, each month from her social security benefit.
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I wish you and yours the best in 2016,