4 Years of earnings are indexed up to the second calendar year before the year of earliest. (See the information from Social Security on the “Windfall Elimination Provision” at for more. , January , ICN [] Get Accessible Adobe from your salary, such as a government agency or an employer in another country, the .

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It does not count towards the annual earnings limit for social security.

I retired from the department of Social Services and I currently receive a pension through the State. When the WEP applies, it is used in determining all benefits on pubx record, both for the primary beneficiary and any auxiliaries.

When that WEP 01045 is applied to my Social Security computation, it gives me the roughly 40 percent return rate rather than the 90 percent rate intended for the very poorest of our citizens. That is why we have a second Social Security representative monitor some telephone calls. And now that I am retired, I get a monthly civil-service pension.

Because I look like a poor person to the Social Security Administration’s computers.

If you get a relatively low pension, you are protected. But folks such as myself, who were hired before then, were covered by the civil ppubs retirement system, not Social Security. Special rules apply to deciding which method to use or if to use different guaranteed PIAs.

And that’s what the windfall elimination provision does.


However, the WEP does not apply once the primary beneficiary has died, and survivor benefits are unaffected. Views Read Edit View history. Whereas Widow’s and Widower’s Benefits take into account the amount of benefits the primary beneficiary may have received while living, a fictitious amount is created as if WEP did not apply for this purpose.

Choose the percentage of the first bend-point to be the higher of the percentage based on the eligibility year or the percentage based on the YOCs acquired. By using this site, you agree to the Terms of Use and Privacy Policy. Year Substantial earnings There is a companion law called the “windfall elimination provision,” more commonly known by its acronym, WEP, which usually reduces any Social Security retirement benefits earned at side jobs by folks who spent the bulk of their life working at a job that was not covered by Social Security.

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And that includes the compensation I get for writing this column, for which I pay Social Security self-employment taxes. At the bottom of the home page, click the “Publications” link. To explain the reason for the law, I’ve got to start out telling you a true story. The Social Security Amendments of Public Law provided for the WEP as a means of eliminating the “windfall” of social security benefits received by beneficiaries who also receive a pension based on work not covered by Social Security.

The Windfall Elimination Provision does not apply to survivors benefits.

It’s a law that makes perfect sense. The way Social Security benefit amounts are figured, lower-paid workers get a higher return than highly paid workers. When your benefits may be affected The Windfall Elimination Provision primarily affects you if you earned a pension in any job where you did not pay Social Security taxes and you also worked in other jobs long enough to qualify for a retirement or disability benefit.

They had the advantage of receiving a Social Security benefit representing a higher percentage of their earnings, plus a pension from a job where they did not pay Social Security taxes. However, the two are technically unrelated.

Explaining the Windfall Elimination Provision, by Tom Margenau | Creators Syndicate

There are exceptions pube this rule. For those who reach 62 or became disabled in or later, the 90 percent factor is reduced to 40 percent. One final note on this topic: But when comparing the rates of return they get based on their past incomes and the taxes they paid into the system, Maria comes out ahead. From Wikipedia, the free encyclopedia.


I should get the same rate of return about 40 percent as Frank gets, and for that matter, as all other average-income Americans get. If you are deaf or hard of hearing, you may call our TTY number, But almost all of these folks are not lifetime low-income workers like my neighbor’s maid, Maria. The Windfall Elimination Provision affects how the amount of your retirement or disability benefit is calculated if you receive a pension from work where Social Security taxes were not taken out of your pay.

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Windfall Elimination Provision

Under these provisions, a future PIA used for any benefits after can be no smaller than: Even though Maria gets a much smaller Social Security benefit than Frank, she might find some comfort knowing that she is getting a better deal out of the program than he is. I’ve done it in many past columns.

They have two publications on their website that may be helpful, too: But I spent some time at jobs where Pugs did pay into Social Security — a few years before I got hired by the feds and some more years after I retired. In other words, there are 20 years of “zero” earnings on my Social Security record.

I don’t have the space to get into the nitty gritty of the Social Security benefit computation formula in this column today. If a past employee opts to withdraw MOSERS funds all at once upon early retirement age, will that effect their monthly social security amount down the road, after reaching eligible age for such?