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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Or to put that another way, Maria’s Social Security check represents a higher percentage of her lifetime earnings than Frank’s monthly benefit.
We encourage you speak to a tax professional or financial tov for advice specific to your situation. Had my benefit been figured using the regular Social Security formula, I would have received the same 90 percent rate of return that my neighbor’s maid is getting.
You would only be affected by the WEP if you earned a pension from other employment and did not pay social security taxes while in that position.
Windfall Elimination Provision
However, the WEP does not apply once the primary beneficiary has died, and survivor benefits are unaffected. The effects of the WEP were phased in between and Pugs is a retired mid-level manager with our local utility company. 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.
So I shouldn’t get the same rate of return that the system set up for lower income people.
Social Security Posted on 9: 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. 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.
Because I look like a poor person to the Social Security Administration’s computers. Year Substantial earnings 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. Retrieved from ” https: And that includes a WEP reduction, which I will explain.
But almost all of these folks are not lifetime low-income workers like my neighbor’s maid, Maria. We can answer specific questions from 7 pubz. We treat all calls confidentially. Update your Email Subscription: When calculating based on the year of eligibility, the year in which the beneficiary was eligible for both a Title II Social Security Benefit and the non-covered pension.
Explaining the Windfall Elimination Provision, by Tom Margenau | Creators Syndicate
She deserves the 90 percent return rate that she is getting. 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. The Windfall Elimination Provision does not apply to survivors benefits.
And the WEP law recognizes that. And knowing that, I can now move on to a further clarification of the windfall elimination provision. And that’s enough to get me a small Social Security check. See the first table that lists the amount of substantial earnings for each year. 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.
That is why we have a second Social Security representative monitor some telephone calls. But folks such as myself, who were hired before then, were covered by the civil service retirement system, not Social Security.
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. Rumor CentralWindfall Elimination Provision.
People hired by the government after pay into Social Security just like most other people.
Explaining the Windfall Elimination Provision
I’ve got only 15 years of covered earnings. You can find more information about the WEP here. Windfall Elimination Provision Posted on 8: You reached 62 after ; or You became disabled after ; and You first became eligible for 10405 monthly pension based on work where you did not pay Social Security taxes aftereven if you are still working.
What you may have heard about is the temporary benefit that is available to members ppubs choose the MSEP plan at retirement. In addition to using our website, you can call us toll-free at The way Social Security benefit amounts are figured, lower-paid workers get a higher return than highly paid workers.
Windfall Elimination Provision
We also want to make sure you receive accurate and courteous service. Congress passed the Windfall Elimination Provision to remove that advantage. Log in to your Member Homepage and change your preferences. After all, Frank’s monthly Social Security check is much higher than Maria’s. Need to know more?