Q & A
How do WEP and Government Pension Offset Affect Social Security Payments?
Answer: Even though a worker has paid into the Social Security system, he or she may not be eligible for the full amount of anticipated benefits upon retirement.Social Security Administration rules that govern who is entitled to benefits, and how much the benefits might be reduced for various reasons, can cause confusion, says Jeremy Kisner, president of SureVest, a wealth management firm in Phoenix.
Financial advisors need to know how to walk their clients through the rules so that the amounts to be paid in benefits, and the reasons for any reductions, are clear, he says. Two regulations that could reduce benefits unexpectedly are the Windfall Elimination Provision (WEP) that affects wage earners, and its companion, the Government Pension Offset that affects spouses, widows and widowers. Read more…
Source: http://www.fa-mag.com, October 16, 2013
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