Windfall Elimination Provision

What is the Windfall Elimination Provision?

Some federal employees may be eligible for pensions that are based on earnings not covered by Social Security. If you worked in a job where you didn’t pay Social Security taxes, the Windfall Elimination Provision affects the calculation of your social security income or disability benefits. Any pension you get from that job may reduce your Social Security benefits.

Your Social Security benefits are only intended to replace a percentage of your pre-retirement income. So if you’re already receiving a pension from your job, and you also worked in other jobs long enough to qualify for a Social Security retirement or disability benefit, the idea of WEP is to remove an advantage, in a sense, of receiving double benefits. The formula used is modified to pay out a lower Social Security benefit.

WEP may apply to you if you turned 62 years old as of 1985, you have become disabled after 1985 or if you first became eligible for a monthly federal pension based on work where you did not pay Social Security taxes after 1985, even if you are still working. There are several other provisions for qualifying for WEP. We can walk you through these facets of WEP, as well as navigate some other options.