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Government Pensions Can Reduce Social Security: A Primer on WEP
Christy Bieber explains the Windfall Elimination provision’s (WEP) rationale and what happens in practice to those who worked some of their lives in a job where they paid into Social Security and some of their lives when they did not. As she notes, for those qualifying for Social Security benefits on their own work records, they may appear to have a fairly low income if the bulk of their wages came from the government job they didn’t pay Social Security tax on. Social Security’s benefit formula is progressive, so the benefit from the formula provides more money for lower income workers than for high earners — even though a person might not actually be low income. Social Security benefits are thus reduced in this situation due to a provision called WEP inserted into law in 1983. Read full piece here.
The AMAC Foundation offers a free-to-the-public advisory service to all folks ageing into–or already in–Social Security. This service provides guidance in understanding the complexities of Social Security and the myriad rules and regulations associated with the process for claiming benefits, with NSSA-Certified Social Security Advisors available via email or telephone to discuss options. Learn more about this service via the Foundation’s website.