Q & A
How does WEP work with Social Security benefit adjustments?
Complete Question: I am 65 years old and have been informed that because of my government pension, my Social Security benefits will be reduced due to the Windfall Elimination Provision. I’ve already retired from my job and started getting my pension, so I’m just trying to decide if I should get my Social Security now, at full retirement age, or later to earn delayed retirement credits. The only thing I’m not sure of is how the reduction for taking it early, or the boost for delayed retirement credits work when you have a WEP reduction. Are the calculations the same?
Answer: When you are affected by the Windfall Elimination Provision (WEP), those calculations you mentioned are the same except they are calculated AFTER the WEP reduction. This means that if you are wanting to get delayed retirement credits (DRCs) based on your full Social Security benefit, you will not – they will be calculated based on your WEP-reduced benefit. The reverse is also true – if you file for Social Security before full retirement age, which causes everyone to get a reduction, your reduction percentage will be based on your WEP benefit, not your full Social Security benefit. This basically means that WEP reductions cause your DRC increases to be smaller, but they also cause your early retirement reductions to be smaller, too.
Also keep in mind that these same general rules will apply for your cost-of-living adjustment (COLA). Your COLA increases will be based on your WEP-reduced benefit, and not your full Social Security benefit. This is actually true for any benefit reduction, whether it’s WEP, a government pension offset, spousal reduction, and/or early retirement reduction. COLA increases are always based on the current benefit amount.
C.J. Miles, MSA, MBAHCM
Research Analyst & Certified Social Security Advisor
AMAC Foundation
Notice: If you have any additional questions about the Windfall Elimination Provision, or any other Social Security question, you can reply below. When replying to this website, please do not provide any personal identification information, such as Social Security numbers. If you would like to discuss your situation privately, you can email C.J. Miles at [email protected].