Retirement Planner: How the Windfall Elimination Provision Can Affect Your Social Security Benefit

If you paid Social Security tax on 30 years of substantial earnings you are not affected by the Windfall Elimination Provision (WEP).

The following chart shows the maximum monthly amount your benefit can be reduced because of WEP if you have fewer than 30 years of substantial earnings.  (To calculate your WEP reduction, please use our WEP Online Calculator or download our Detailed Calculator.)

The chart is easy to use.

Go to the Eligibility Year (ELY) column to find the year you reach age 62 or became totally disabled (if earlier). If your birthday is on January 1st, use the year before you reach age 62.

Go to the column that shows the number of years you paid Social Security tax on substantial earnings. The amount shown is the maximum your benefit can be reduced in your Eligibility Year because of the Windfall Elimination Provision (WEP).

Important: The amounts in the chart below do not reflect the effect of cost-of-living adjustments, early retirement, delayed retirement credits, or other factors.

Example: WEP reduces your Eligibility Year benefit before the annual cost-of-living adjustment (COLA) is added to your benefit.

If you became disabled in 2007 (ELY 2007), presume the WEP reduced your $1,340 benefit to $1,000.

In January, 2008 the 2.3% COLA increased your benefit by $23 ($1,000 x 2.3% = $23).

More examples of how other factors affect your benefit can be found in Examples of How the Windfall Elimination Provision Can Affect Your Social Security Benefit.

 

via Retirement Planner: How the Windfall Elimination Provision Can Affect Your Social Security Benefit.

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