It depends on when the employer/employee relationship ended.

No, if the individual works her last day in covered employment but the employer/employee relationship continues until the contract expires.

Example. A teacher is in a noncovered position under a contract that ends 7/31/04. The teacher finishes the school year on 5/31/04 and works one day in covered employment before 7/1/04, in the same school district. The teacher does not work any more after his one day of covered employment but does not officially retire until 7/31/04. The individual would be subject to GPO because his last day of employment was actually 7/31/04, when his contract ended.

Yes, if the individual severs the employer/employee relationship by retiring effective before or immediately after the last day worked.

Example. Same scenario as above but the teacher retires effective the day after his one day of covered employment. Although the contract expires 7/31/04, he severed the employee/employer relationship as of the day after he worked in covered employment. The teacher would meet the "last day in covered employment" exemption. The teacher would also meet the "last day in covered employment" exemption if he severs the noncovered employee/employer relationship before the end of the contract period and then works his last day in covered employment.

NOTE: Based on the enactment of the Social Security Protection Act of 2004 (P.L. 108-203, enacted March 2, 2004), the "last day" exemption to the GPO can apply only if:  1) the last day of covered employment is before July 1, 2004; or 2) the person applied for the Social Security spouse’s or surviving spouse’s benefit before April 1, 2004.

For more details on this change in the law, see the question on the Social Security Protection Act of 2004. This law generally replaced the "last day" exemption to the GPO with a requirement that the person work in a position covered by Social Security for the last 60 months of government employment prior to retirement.