Search Results for: Windfall Elimination Provision

The Windfall Elimination Provision (WEP), explained.

The Windfall Elimination Provision is an often vilified rule in the Social Security Act which reduces the benefit available to those who have worked in jobs which withheld Social Security payroll taxes, and also receive a pension from a job…

Don’t be blindsided by the Windfall Elimination Provision or the Government Pension Offset

The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) may affect anyone who has worked in a government civil service job which didn’t withhold Social Security payroll taxes, but who is also eligible for Social Security benefits.  This FEDweek…

The Windfall Elimination Provision – Be Prepared!

Understanding the impact of Social Security’s Windfall Elimination Provision, enacted in 1983 and affecting an estimated 1.6 million retirees, is a significant point in arranging retirement finances. An article posted  on www.journalgazette.net by Frank Gray provides background on this matter and it’s…

I am a CSRS employee with 34 years in at age 64. I plan to retire in April. I earned my 40 credits prior to being a federal employee. I do not plan to sign up for Social Security until I turn 66. As I understand the windfall elimination provision, I will go into retirement receiving whatever CSRS annuity I arrange and when I sign up for Social Security, I will maintain the CSRS annuity but receive a reduced amount of Social Security. Correct?

Answer: Correct. Source: Reg Jones, FederalTimes.com – January 6, 2014

Windfall elimination provision – How does Social Security affect my benefits?

Full question:  I have retired after 42 years of federal service. I was on CSRS with no offset. How does Social Security affect my benefits? Before starting my career with the federal government, I had amassed enough quarterly hours to qualify…

Can I reduce or eliminate the windfall elimination provision reduction by continuing to work? I am now 62, and about to receive a modest deferred CSRS Offset pension. I also have 24 years of substantial earnings in Social Security. If I continue to accumulate substantial earnings, can I get up to 30 years, at which point the WEP penalty disappears? That is, if I don’t apply for Social Security until I’m 70, will they calculate the WEP based on my earnings record as of age 62? Or will they wait until I apply for Social Security?

Answer: As I understand it, the WEP is based on the number of years of Social Security-covered service you have at age 62, whether or not you apply for a Social Security benefit. Source: Federal Time, August 23, 2013 (http://blogs.federaltimes.com/federal-retirement/2013/08/23/windfall-elimination-provision-30/)  …

Is there any legal way around the windfall elimination provision if you have only the 40 quarters of Social Security?

Full question: Is there any legal way around the windfall elimination provision if you have only the 40 quarters of Social Security. My pension was reduced nearly 50 percent because of this act. My wife collects Social Security. Could I…

I am 52 and would like to retire at 55. At that point, I will have 35 years in CSRS. I also have 36 quarters in Social Security as I worked a part-time job in college and other points in my life. Will I receive Social Security benefits with less than 40 quarters, and if so at what level? Also, if I go back to work as a contractor after I retire from federal service and get my additional quarters, what would be the impact when the windfall elimination provision kicks in?

Answer: No, you can’t receive Social Security benefits with less than 40 credits. To find out how the windfall elimination provision would affect you if you were eligible for a Social Security benefit, first go to http://ssa.gov/pubs/ENS-05-10045.pdf. Then use the…

I am CSRS and on the verge of retirement with 40 years at age 66. I do not have 40 qualifying quarters for Social Security entitlement. My former spouse will be getting a portion of pension. She is Social Security-qualified. Will her Social Security payments be offset by the amount of my pension she receives because of the windfall elimination provision?

Answer: Your situation will have no effect on her earned Social Security benefit. However, because you’ll be receiving an annuity from CSRS, a retirement system where you didn’t pay Social Security taxes, any spousal Social Security benefit to which you would…

In 1999, I voluntarily switched from CSRS to FERS after 22 years of CSRS service. Since 1999, I have been covered under FERS and paying Social Security. I plan to retire this year at age 67 after 36 years of service. I’ll have accumulated 54 calendar quarters of substantial and maximum earnings. At the time I elected to transfer from CSRS to FERS coverage, I was told that I’ll be exempt from windfall elimination provision deduction from Social Security benefits and that my spousal Social Security benefits will not be affected by the government pension offset. Is this correct?

Answer: What you were told was half-right. Because you will have been covered by FERS for a minimum of 60 months, you won’t be subject to the government pension offset. However, you will be affected by the windfall elimination provision if…

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