The Windfall Elimination Provision - Plus the Two Most Common Ways to Sidestep
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- Опубліковано 10 кві 2022
- If you have a pension from a job where you did not pay Social Security taxes, you need to know about the Windfall Elimination Provision! It’s unfortunate, but you CANNOT expect the Social Security Administration to tell you how this will impact you. This means that the burden is on YOU to fully understand how this provision works and how you’ll be impacted. In this video, I’ll untangle this provision so you’ll know how to calculate this for yourself and then discuss the two most common ways to sidestep this rule.
My article on “substantial earnings”
www.socialsecurityintelligenc...
My article on lump-sum pensions and WEP
www.socialsecurityintelligenc...
My article on How To Calculate The WEP & GPO With Mixed Earnings Under The Same Retirement Plan www.socialsecurityintelligenc...
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Excellent video! I learned more here than any webinar I have attended in the last few years. Thank you!
Please help me. I am trying to understand the math here for my Aime SSDI. I have the top wages for a regular SSB of 35 years. Will my AIME for SSDI be based on 30 years or 27? I turn 62 in 2020. Please advise thanks.
There is a bill pending in Congress: Social Security Fairness Act H.R. 82. Please write your representative and ask them to support this bill that would overturn this unfair rule!
they wont they still have to ride on the back of the poor to get anywere. im sorry if my dirty little hand is reachin out the gutter only to grt 4000 snatch out of it every year
There is absolutely no double dipping if you did the years of work that qualify you for SS benefits. I know that H.R. 82 is at least on that table now and hope that it will go thru to give that rightfully earned money back to the people who've earned it, LEGALLY!!!
I've worked over 20 years at a non SS position, but probably leaving this year to one which will pay into SS.
While I'm hoping this gets addressed, I'm also skeptical that I'll get any SS benefits by the time I retire, and this will be just another tax to fund our overspending federal government.
So I'm planning my retirement as if SS didn't exist.
I worked from 1964 to 1984 and paid SS in late 1984 I started teaching in California did not pay SS in that Position From 1984 to 2010. When a retired in 2010 I received some Social Security but it was cut 30%. This was applied only to the years I paid in. Not on the the 46 years I worked.
The point is that p eople get extra monetary benefits if the worked a short time because they may be poor in retirement. You will get the amount most SS beneficiaries would get after a few years. Unfortunately no one wants to explain this point.
The government taking full social security out of your check for years with the idea you would get it back later. Then, reducing your SS 50% because of WEP is taxation without representation. My pension is paid by a city, not the federal government. The 14th Amendment needs to apply here, equal protection.
I did know that I would be affected by WEP. Trying to figure out how the formula works and understand what your actual SSI payment would be was difficult. I finally figured it out once I had my AIME. I feel strongly that the SSA should indicate to those of us that can/will be affected by WEP. I agree a lot of people do not know that they will be affected until they retire and are surprised by this.
Thank you so much for sharing this with us. I am being negatively affected by the WEP. I had to retire early due to disability. I am currently on Retirement Disability through CalSTRS. I had been worked in the public sector from age 16 through age 36. Then when we sold our company business I began teaching from 1997 through 2017. My EARNED SOCIAL SECURITY BENEFITS HAVE BEEN STOLEN FROM ME FOR 29 YEARS. We need everyone to be informed about this flawed practice introduced in the early 1980's. I have worked since I was 16 years old. Now I am not receiving my EARNED Social Security Benefits from my first 20 years of paying into Social Security. I am not asking for more . I am asking for what's FAIR!
make sure you contact your state congress representatives
So a spouse who never worked a day in their life will receive more benefits than I would. I have full credits and received a pension. Not fair!
I was one of those that was surprised and shocked by the difference between what the estimate said I would get and what I actually received. Why does this WEP exist? I worked for the government for 25 years and retired under CSRS. I also worked outside of that job and after I retired and the government took the full amount they could in FICA taxes. Between my retirement (age 50) and age 65 I made pretty good money from the private sector. I worked for both my pension and SS. Why does one affect the other? It seems like another way for the government to rig you out of your money.
Thanks for the explanation Devin, it confirmed my understanding of the WEP. I am 57 and I have a 20 year gap of not contributing to SS however, I did earn a municipal pension. Now, I am again contributing to SS and by age 60 I will have 20 years of "significant contributions" into FICA and begin to phase out the WEP (at 5%/yr in the first bend of my SS calculation). Each person's SSI payout should be calculated the same, based on what had been contributed over the highest 35 years. Everyone under the same rules! It is unfair that some will be penalized for having secured another stream of income. We played by the same rules!
It is already discouraging knowing that a pension plus social security will often cause part of SSI to become qualified as taxable income (cant help but feel like we are being taxed on the FICA taxes we paid over the years). Not to mention the higher Medicare premiums. It is like punishment for making good decisions.
The IRS is structured to penalize you for being a hard worker. Work harder and make more money, get bumped up into a higher tax bracket.
Precisely. The aim of WEP was to shore up the SSA fund back in 1983 by having people contribute but then not have to pay out a percentage. Meanwhile, congress was raiding the SSA fund for other purposes.
CONGRESS SHOULD PAY US BACK FOR RAIDING OUR HARD EARNED MONEY. VOTE THEM OUT OF OFFICE !!
Devin, thanks very much for your thorough and highly informative analysis. Legal immigrants are another group adversely affected by the WEP and GPO penalties. Speaking for Polish-American legal immigrants, these individuals first earned a pension in Poland. They then immigrated legally to the United States to achieve the American Dream. They worked hard, raised their children to be good Americans, and paid into Social Security the entire time. They were then were met with the shocking surprise you’ve outlined. The Social Security Administration tells them that, because they didn’t pay into Social Security while earning their foreign pension, the WEP penalty requires their Social Security pension to be reduced. This is unjust and discriminatory. Perhaps you could address this injustice in your next video. Again, thanks for your outstanding efforts to present the facts.
It is also true for Americans who work in another country for any period of time and are entitled to a pension from that country. SSA cuts the SS amount, but it is not common knowledge.
Yes, a bit of a surprise for me. I have lived in the UK for 24years and when I applied for my SS pension was advised that I would loose about $400per month!@@linda4787
EXCELLENT overview ! Thank you for that explanation
Thanks for watching!
Thank you, keep up the good work.
The worst part of the WEP. Is how spousal benefits are reduced also.
Thank you for helping me understand this WEP, because I'm disabled and approved for Medicare, but not the disability benefits, I'm a retired Texas educator so wep is resin, even if i work other jobs and didn't have enough points.
Yes, I have known for a couple of years. But it was a shock when I first discovered how this works.
It is shocking to many when they discover the nuts and bolts of the calculation. It'll be even a bigger shock when they see the proportional formula that is brought on by the "repeal" of the WEP.
This question was deleted as I just downloaded your very informative Top 10 Questions and Answers on the Windfall Elimination Provision!! Thanks Devin!
Devin, this is the EXACT situation I am in now. I have more than enough qualifying credits from my years of work before I got my present job, but I will take a hit because of my years in a non-covered job. I am fortunate that my co-workers in formed me about this years ago so I could plan properly. I used the WEP calculator on the SSA website to approximate my payment after the penalty so that I'll have a more accurate number to work with for retirement calculations as I will be retiring at the end of May. Glad I'm subscribed so I could see this video!
Thanks for watching!
Thanks for explaining the reason
Great information Mr. Carroll. I am a subscriber and love to watch your vides and helpful information. This video addressed lot of issues about WEP and helped.
I have an additional question please: If the low earner spouse doesn't have full 40 credit (worked only 2 years paid in SS) but also woreked10 years with School District or has TRS ( Very low benefits < 200 per month). She has not filed or taken her TRS benefits yet.
1) Can she gets spousal benefits and how much.
2) Is it wise id she withdraw all TRS pension . Here TRS allows full withdrawal.
3) How is WEP affect her here since she is filing on Spouse higher earner benefits. Thanks.
As much as I think I know about the WEP. I always learn something new, I just got 30 years of substantial earnings, can’t wait to enjoy it. As always great stuff
Thanks for watching!
@@DevinCarrollI really enjoyed your video, but my issue is that I have an OBRA account and not a pension. Can you tell me how that would affect my social security check?
Outside of this part-time job
To Fuzz-- It's not that cut and dry. Many people pay into SS after retiring from the job that didn't pay into SS and are STILL affected by WEP. It's actually hard to believe.
Hi Devin - Thank you for posting this excellent video. This is definitely by far the clearest explanation of the WEP I have found on UA-cam. I would be grateful if you could clarify one point. You mentioned that when calculating the reduction in your benefit, the SSA uses the bend point in effect in the year when you turned 62. Does that mean the the amount they deduct never changes? What happens if your pension increases each year due to a COLA? Do you have to inform the SSA each year what pension amount you receive? Thanks!
Although posted about a year ago...I believe SSA only uses earned income in these calculations, a pension with COLAs would not be used in these calculations, but I would follow up with a retirement specialist if this is still a concern.
My statement listed my expected social security income at age 62 as $800. Due to the Windfall Elimination Provision, my actual social security at age 62 was less than $250 per month.
My dad worked for well over 30 years and paid into social security during all of those years. He started a second career as an educator and then retired from that profession. Based on what we thought, he should have received his full social security payment but they still cut his benefit. The troubling thing is that they didn’t mention that the WEP applied to him for a couple of years and they are now demanding that he repay the “overpayment”. Since he paid into SS for so many years we feel that he’s earned back the reduction in SS benefit but arguing with the Social Security people is an exercise in futility.
Can you appeal the reduction by providing evidence of his 30 years of work in non-pension jobs?
@@b.c.2836 My dad is trying but they have not replied to him. They also said that he has the option of using "their attorney". It makes no sense.
We were both WEP and GPO impacted. We started our separate business and paid into the IRS for an added 10 years substantial earnings to meet the requirements. This met their 30 year threshold to remove WEP. Our annual income increased a lot. Our annual social security doubled in ten years. We certainly do not like Reagan for making those cuts and do not like Biden who promised to repeal but has done zero to help seniors. But the message is to increase your substantial earnings so you reach 30 years.
Just filed in January. I thought I had at least minimum substantial earnings. Nope. I have a tiny $400 teacher pension. My SS is only about 1500 a month. After the deduction it dropped to 1118. So I’m penalized that way and because I worked part time so I could be home when my kids were home. I just don’t get it because I contributed into both programs. I should get monthly pay without this deduction.
I feel your pain. The sacrifices women make to care for our children are never recognized monetarily.
Working part time as a teacher or in public service is a joke. It kills you SSS.
So very true! Teachers who do this part time or do it briefly as a second career or never informed about how much you can damage their previously earned Social Security eventual payouts. This needs to be mandatory in terms of at least the information. Yes, hopefully it will get overturned or changed, but meanwhile… This needs to be information given to people before they decide to take pension fund it jobs after years of paying into Social Security
I thought is was not supposed to be more than 1/2 the amount of your other pension. That should only be $200 subtracted from your earned SS, right? What did they say about that? Or am I misunderstanding sometime? Am I wrong about the 1/2 amount?
@@linda4787it is not 1/2 it is a percentage. As a retired police officer we pay thousands into social security, like teachers. Come retirement, they we might see $150-$200 dollars of our SS because of a pension. So basically teachers, firefighters, and police officers pay into SS so others can receive your money. Spread the wealth. Aint it grand.
Thank you for this video it has been very helpful. If 2023 marks my 30th year of substantial earnings which allows me to collect my "full" SS; do I only have to work the number of months it takes to earn the 2023 substantial earnings amount or do I need to work the entire year?
Here are several suggestions going forward that could be helpful in mitigating the ignorance of WEP: 1) ON BOARDING: Each employer should cover this as a condition of employment in the ON BOARDING process for new employees so they are FULLY aware
2) COUNSELING: Each employee should receive advise on how to avoid the WEP either through the opportunity to decline the State Pension (contributing to SS) or to find a second job that will allow them to earn the minimum Substantial Earnings [including being self employed where they send in their own "taxes"]
3) LEGISLATION: Because this affects such a small percentage of the population the issue doesn't garner much attention of law makers but if enough noise were generated in a big state (Texas for example) perhaps some "fixes" could be enacted [including ending the WEP/GPO policies]. The '80's and '90's laws that were passed to "tax" social security need to be updated in any case so these could get revisited at that time too. Unlikely though because the current Congress sees the revenue stream as dependent on these old earnings targets and punitive outcomes predominately for first responders and public school educators. In my mind this should or could be a topic high on an agenda for a Convention of the States [which is long overdue].
I’d love to see more education at the beginning of working a non covered job. Many people didn’t understand this rule or simply don’t comprehend the significance of this until they are close to retirement. My son and daughter-in-law (firefighter and teacher) both recently started non covered work and neither received any education about the WEP.
Excellent points. I had no clue until now, 5 years after working for an organization that has this model. 0 contribution! Yikes!
I'm screwed completely by this as I didn't have "significant earnings" in a 20 yr period due to personal reasons, and only worked 6 yrs that didn't withhold SS. Of course since SS doesn't tell you this, I was devastated when I called SS 2 years ago to get my amount. Only 1/4 of what I thought? How am I supposed to live on that as a single person????
Yes I knew about WEP and, yes, SSA should show that in the yearly statement.
I've been telling a lot of my co workers about this for years and just about everyone one of them had never heard of WEP. Just about every one of them had previously worked in the private sector and had no idea that their SS payment would be affected by WEP. I hate being the one to enlighten them on the subject, but I hate more the idea that they retire and start pulling the SS at 67 and find out their SS benefit is going to be reduced by $500 or $600 a month. That could easily mean the difference between being able to retire or keeping the house they live in.
@@Lake_Lover Yeah, as I was closing in one my retirement date those before me told me how low their ss payment was. I was stunned but I sadly learned.
I think that more information needs to be put out there by SSA. Thank God I worked for a teachers pension plan and we made sure we informed the teachers about WEP. But even I was amazed at how much they took from me. To me this program isn't fair.
It is convoluted for sure. 🤯
No its not fair ! Support staff really not fair!!teachers time counts as years we get 9 month credit onnpers. Ss check i got messed out of hundreds!!! Not happy then nor now. Politics were involved ..
@@carolbrandt1086 That was Reagan's doing. He really wanted to get rid of SSA, but they convinced him not to, so they figured they would save money this way. But people in private industry who pay into SSA and also get a pension plan from their employer get to keep both with no reduction. But they forget that most teachers and government employees have to pay into Medicare. The whole thing is that they don't care about anyone but themselves and the rich.
Keep voting Republican and this is what we get 🤦🏻♀️
I have a pension from a non-covered job but I knew of WEP and simultaneously worked two careers to be certain to have at least 30 years of significant earnings under WEP. Thus, no reduction for me or my spouse if she receives (a portion of) my benefits after I pass.
However, if she ends up with a small pension from her own public employment, then she will be affected by WEP.
I have mixed feelings about the provision and can accept it either way. I am more concerned about Congress accounting for the funding shortfall soon.
When you are applying to SS online is there a box where you add your pension information and SS knows this and when you retire a certain percentage will be deducted? Does the SS technician figure out the new amount?Thanks cool
Video!
I have a government pension. Even though I qualified for SSA/Medicare because of other employment WEP reduces my SSA benefit to barely enough to pay for Medicare.
Overall, I really don't care. My pensions is great, dozens of times better than SSA. The travesty is all the people who could have invested their payroll taxes into a real pension, got screwed by paying into SSA which is a weakly disguised wealth redistribution system.
The pension I have required a lower contribution than SSA and provides more benefit. How can that be? Reason #1, my pension system is only for members that paid into in it, no charity cases. Reason #2 the money was invested and earned lots of money, rather than being an IOU with statutory interest.
The true travesty is that a pension like mine was not available to everyone, rather than the SSA scam.
To your question in the video, yes I knew about WEP years before retirement. SSA wasn't an element of my retirement plan at all.
I've known about this for a while but only recently known how to calculate it by watching your channel and Heritage Wealth Planning. I would be interested in examples showing the benefit of working past 70 if you hit 20 years substantial earnings after 70 and continue working. (For example, reaching 20 years at 72 and working another 5 to 10 years making substantial earnings.)
I'm getting around it another way. I am drawing my full social security benefit since my FRA several months ago. I continue to work as a teacher. I have 23 years of social security "substantial earnings". My social security isn't going to be hit with my $350 per month or so penalty until I take my teacher's pension. So I look at it like I'm getting effectively $350 per month extra until I take my teacher pension.
That is exactly what I did when I worked for the City of Los Angeles, at FRA of 66 I took my SS while still working until I hit 70. I figured 4 years without WEP would be far better than waiting until 70 to take my SS.
@@gregmay9097 I did this too. Thanks to UA-cam videos, I learned a lot about this topic before I hit retirement age. I was very surprised and pleased to learn that this penalty would not impact me until such time as I started drawing the pension. I also learned about the difference between FRA, and FRA year, so I then contacted a Social Security representative to have this confirmed. I started drawing at the beginning of my FRA year.
A month or two ago, I got a letter from SSA wanting to know if I had started drawing my pension yet, and if not when I planned to retire. I told them I had no immediate plans to do so. I haven’t heard back, but I’m waiting to see what they have to say about it.
I did the same. You and the other poster here are the only people I’ve heard of using this strategy besides myself. I mathed it out, and it pushed my break-even point out several years to do this. If there is a reduction overall in a Social Security payment, then it makes even more sense to get our payments frontloaded like this.
I worked a total of 40 plus years. They last 9 years I did not pay into SS. I worked 9 years in a private pension system. When I retire I was pentelized 2/3 of my SS.
I don’t think they penalized you You had 31 years you paid Into SS It could be you took SS at 62 before your FRA Or you logged into the SS Website and looked at estimated benefits before you had 35 years paying into SS
@@Satjr35031
You are correct I did retire at 62. It was explained to me that the SS deduction was not because of me being 62. Thank you for clarifying this.
I try to warn people in cases similar to yours but they didn't listen. I'm sure you were also warned.
I paid into a Defined Contribution Plan (DC) for years and my earnings were NOT taxed for Social Security (Higher learning employer). I have a sizable balance in the DC plan of about 500K. I also had private sector employment where I have qualified for a very small social security benefit which I intend to defer until Age 70 (benefit will be $1,078 per month when I draw at 70). Given my social security benefit is so low will I be subject to WEP when I draw out benefits? Its just not clear to me because I want to roll the DC plan out to an IRA but don't want to trigger anything through WEP unnecessarily. (I am age 66 right now).
Devin, what happens with the income payed to SS and now not eligible to WEP ?
foreign pensions that paid even higher rate social security are also impacted by this WEP which is also very unfair. Nobody mention, not even in this post that “uncovered” means “uncovered in US SS”, even if your foreign pension paid foreign SS tax, you US pension will be unfortunately impacted as well. Very unfair.
Thank you for this information! Does the WEP apply if you are planning to receive an ex-spouse's social security benefits?
Does the windfall act effect a firefighter { no SS withheld ) that was retired on a full medical retirement but worked part time job with SS withheld ?
I am from WI and I am receiving a pension and I am subject to WEP. I worked enough quarters and I am eligible for a small social security benefit. My question is does my Social security benefit get taxed? Because that would really make my benefit small.
Survivor benefit recipients cannot see their earnings online. They have to contact SSA to get a printout of their projected benefit. Maybe do the same for individuals subject to WEP.
Hello, I did not know about WEP. I have qualified for social security. I found out about WEP when I applied for my retirement in Germany. I have since then also applied for Social security and am now trying to understand WEP. I still am not really sure as to much of my social security that I will receive at the end of the day, if anything!!??
What is meant by earnings. Is this total gross earned? Or adjusted taxable income?
How are we not be in an essence taxed by this? My ss benefit right now says I get $1100 a month I just started the pension job. So that $1100 was previously earned. So you saying they will decrease my benefit from previous earnings???!! How is that not a tax??? If I was due that money as of today and not worked another day I would get the full amount but because I got a pension job I get punished ??!!!
Yep, the gov't works illegal schemes against it's own people.
Question, my retirement is 66, and i am going to retire age 69 & 4 months would i get the extra monies past FRA monies?
This makes absolutely no sense to me but that may be because I am an English teacher who is still working at 75. I want to know the WORST CASE if and when I retire. Should you make an appointment with Social Security? Should I just never retire and die in my classroom? Should I get advice from a Social Security attorney?
What if I worked for a foundation at a university but after a few years also began teaching there with a CALPERS part-time position, and when I retired from that teaching job, I used that small pension savings to buy retirement credits with CALPERS. I don’t receive a teacher’s pension. I only receive a CALPERS pension. Will I be subjected to WEP?
Just another CALPERS covered employee here - bottom line is whether or not your teaching jobs paid into FICA (i.e. covered employment or not). I believe your California teachers pension is handled by CALPERS. There are CALPERS Members Benefits Education classes (virtual) that will cover a pension and SS distributions that would be very helpful.
How does the WEP apply if you are going to claim under a former spouse’s income?
So I’m 61 currently employed by a college with non SS paying pension. Prior to my being employed in this job I had 24 counting years paid into SS. I’m figuring about a $300 a month reduction at age 62 ? What I’m not sure about is if I wait and draw at 67 or 70 the penalty will be more than $300/ month since it is figured at age 62 then the future increases will be less because of compounding from the reduced amount at age 62 ? So in other words I can’t just take my SS statement and subtract $300 at age 67 and 70 because it will be more from loss of compounding from the reduction being figured at age 62?
Question: I claimed at age 62, my ex (i was married 12 years, never married again), just claimed at age 70. I know since i was married longer than 10 years, that since half of my ex husbands soc security, is more than my soc security amount. My question is: what age of my Ex, will they use? HALF of His amount of his social security at 62 or 66 or 70 years old? Thank you
Yep, I knew the first year I taught.
what if you have inly 15 years substantial earnings? and have a 403b ? can you still collect SS?
My doubt is; I am a widow and I have a pension in my home country from my own work. Here in the U.S. I worked only 3 months. I have already turned 60 years and I want to apply for widow benefits on my Husband's registry. Will Social Security reduce the amount on my husband's record for the pension that I have in my country?
My plan for mitigating the WEP, which I learned about when I started working for the state, is to keep working and build up my state pension enough to cover it. Keep getting raises, etc. I started working for the state at 60 years old. My WEP is roughly $480. So far, my state pension is on track for over $1000, and my PIA as calculated by SSA is about $2700. I'm 64 now and will keep working until I'm at least 67. We are likely to get a significant COLA this legislative session since finding people to work for the state for the money offered is getting increasingly difficult. I'm in IT and we are really struggling just to fill vacant positions, much less the temporary positions created by a legislative session. We also get regular step increases each year. Any state pension is really just extra money since the PIA is calculated at 62. It's funny how I have 26 years (if I remember correctly) of "substantial earnings" for SSA purposes and my state pension is already calculated at over 1/3 of my SSA pension, in only 4 years. I wish I had started with the state a few years earlier. As I get closer to state retirement, I'll revisit the numbers, but these are close.
You got a pension after only 4 years of public service? I was a firefighter for 3 years and left because I didn’t like it but I didn’t get a pension because I wasn’t vested with 10 years. Where there no vesting requirements?
@@verticalmuscle5695 that's what it is currently calculated at. We vest at 5 years. We can retire at 60, or with 30 years service. I plan on retiring in 3 or 4 more years. Mostly to make up for WEP.
@@mlong1958 nice man what state is this retirement system if u don’t mind me asking? Massachusetts sucks u need 10 years and anything less that that u just get your contributions back unless you go out on disability then u end up getting 72 percent of your last years salary for the rest of your life but unfortunately the Massachusetts retirement system doesn’t cover ptsd :/ and I couldn’t really go out on anything else becouse im too young
@@verticalmuscle5695 Nevada. Max retirement is 75 percent of the average of your high three years.
I had to take disability after working for 28 years. Will I get any reduction in the taxes I pay on my British state pension or do you have to work exactly 30 years.
Yes. It's unfair. Yes. It was part of a plan to shore up SSA fund back in 1983, but only because it was being mismanaged and pilfered. The devious scheme was to reduce payouts to a set of people so that some of the money that they paid in could be retained. The reason given was that people with a pension don't need as much as those with just SSA DESPITE their paying in just as much or more on a year to year basis. If Congress and Biden don't act before the mid-terms, a republican senate will do as they've done forever...block reform.
I taught in Texas for 11 years. Withdrew my retirement to help buy a house when I moved to Oklahoma. I taught in Oklahoma for 15 years then retired. I did not know that WEP would effect me since I retired I Oklahoma. My ss estimate never reflected it or I would probably have not retired. It's unfair that I was not informed by ss administration. Currently looking for a job at 64.
This is where Roths and other investments help us. I have 14 yrs pension that pays my mortgage, currently working at a private school which I now pay into SS, I do have prior SS contributions but it’s a balancing act to try and retire at FRA. Good luck to you.
Time for a class action suit against this bizarre government malfeasance.
What if you used the forced pension savings account of about $7,500 to buy service credit with CALPERS and only receive a CalPERS pension?
Devin, how is a pension determined to be covered or not covered? What if a pension is funded by mostly years of SS contributions but partially funded by a few years that are not funded?
What if I taught or worked at 3 different colleges for 4 months or less that didn’t withhold FICA, but I didn’t get set up for a pension at those places? Will I be subject to WEP?
If you aren't receiving a pension from them, then it will not affect you.
I need a bit of help. I have 19 years of substantial earnings paid into SS while in my 20s and 30s. Then, I became a teacher and in my 40s and 50s paid 19 years into CalSTRS pension fund. I retired from teaching in 2018 and am already receiving my teaching pension. At that time (in 2018), I resumed work in the public sector with the goal of working 11 additional years paying into SS - in order to pay a total of 30 years into SS. In 2030 I will have 30:years of substantial earnings in SS (in addition to my teachers pension). I THINK that means I should not take my SS until 2030. Any thoughts from anyone would be so appreciated… thank you in advance!
Is the Wep guarantee a universal application? Does it guarantee a no more than 50% reduction of benefits regardless of AIME, applicable to all, or are there exceptions ??
Will I be affected by WEP. I have been working for over 40 years and I am eligible to collect SS. I receive my late husband's pension, in which he worked for the city and it is a State Retirement. I am feeling very anxious that my SS will be cut quite a bit....
The obvious solution is for all employees to have social security taxes withheld and receive the standard social security benefit.
It wouldn't surprise me to see this mandated in future Social Security laws.
@@DevinCarroll It is deceptive by companies during hiring to not disclose the impact of WEP. If I had known the impact of WEP at the time of my hire, I would have turned down the job offer. I only worked 7 years where I did not pay into SS, and now get punished for a lifetime. I won't make the 20 years substantial earnings.
If Congress repeals Wep will the original non-WEP calculations be reinstated to those affected byWEP ??
My husband has a pension. Will it affect my social security benefit? Will he get a survivor benefit? I get a survivor benefit, will that affect my social security benefit? Need this information. Help!
I used the SS calculator for WEP. I will get a $428.00 deduction from my SS payment.
I worked at part-time job for the last 20 years in a municipal building. Because I'm less than half time I do not get a pension but I get an OBRA account my contributions and the municipalities contributions are about $1,000 a year. So when I contacted social security they literally told me that the wep would cut my check in half.
I think there's something wrong with that and I'm wondering if anybody knows anything about how Obra is applied,,?
This information should be required to all employment that generates a non-Social Security benefit (pensions; not in the Social Security umbrella) that when that person becomes eligible for Social Security benefits, that those benefits will be drastically reduced due to those non-Social Security pension entities.
i worked 34 yrs of regular employment paying into social security. 10 yrs of pers, public employees benefit. ssa reo told me my sovial security will not be teduced. but i called in 2 more times and was told by 2 more workers that i would be subject to windfall and my social security benefit will be reduced. they said they never heard of the 30 yr rule!! olease hekp me understand!!
Wow, did not know that the WEP could reduce your Total retirement income. If you are eligible to receive $1 from a uncovered state program your SSA could drop over $400? Does not seem fair.
The WEP Guarantee rule says that your Social Security benefit cannot be reduced by more than half of your non covered pension, regardless of the current WEP penalty amounts. For example, in 2022 the WEP penalty is $512. But if your pension was only $800, the WEP penalty couldn’t be more than $400.
So, if you retired from the military and retired from the federal govt, the WEP will not affect your SSA?
What federal retirement plan? Was SS part of that plan and it was deducted? FERS
Devon I have a question for you I was a federal employee under Fers and I’m under the windfall elimination program I paid Social Security for 31 years and I’m still only allowed to make $1700 a month or they’ll reduce my pension why has anybody mention this or is that wrong
Hi Jeffery...if you were under FERS, you should have paid into SS?
@@DevinCarroll Yes I did pay but I’m still under the windfall elimination program you were saying it’s only for people who didn’t pay Social Security but I still pizza security and they’re still top of me with windfall elimination program
Devin, can you please look at my three questions/comments and answer them?
I am affected directly by this provision. I would prefer to reduce the distribution of social security benefits to the same math formula for all participants. It should not serve as senior welfare, unless it is so called. Many seniors believe they "earned" their SS check, even though it is highly subsidized by high income earners.
Atleast show on the statement how much they are recieving from other person's contributions.
What if you worked for a non profit?
Hi Devin, retired firefighter now at full retirement age collecting Social Security but only has 27 years of substantial earnings. If he continues to work and meets the substantial earnings will he be able to get to the 90% like everyone else
Yes
Thank you
Unfortunately there is another group that gets hit with WEP that never seem to get a mention, IMMIGRANTS with a pension from their country of origin. As an ex-Patt Britt living in USA my US SS also gets hit by WEP triggered by my UK State and Private pensions.
same here but slightly further south, is it worthy in the end keep paying to SSA for future benefits knowing you need minimum 10 years and all the penalties you will get once you retire?
@@junal27 Depends on your situation. I postponed my UK pension until I retired at 70. I worked in public sector so would also receive a pension that would trigger WEP when I retired. I started collecting my SS at 66 (FRA) at the full amount until I retired, then it got reduced by the maximum amount. If you can get 30+ years of SS contributions the WEP is phased out and your SS is not reduced. Incidentally, I don't believe you can opt out of SS contributions unless you are in public sector where those contributions go to your pension fund.
No, I did not know. I didn't even know WEP existed until recently :/
I did NOT know that the ss estimate was wrong, but I don't expect to get anything anyway so....😢
I did pay into social security and have enough quarters. But they’re saying I still have a windfall.
Am I even able to get SSA? I am 63 and retired teacher in Texas (no SSA paid in). I worked before in business and paid into SSA for enough credits. I also have retired as a teacher in Arkansas (SSA paid). Where the heck do I stand with the WEP? 🤣
I worked in the California State Prison system. My former wife took 1/4 of my retirement. Because my I would be receiving 3/4 of my pension, at least according to CALPERS, some "off set" with respect to my addition Social Security earning would be accommated. In other words, because I didn't get my whole retirement, I could get a slighter higher amount from Social Security, since she took 1/4 of that benefit. WRONG!!! I had 18 years in the private sector and 25 years in the public sector. Now I understand that in order to get that full Social Security benefit, I will have to work until I'm have 30 years in? Thanks for reading.
get a meeting with social security
Is there a way to stop paying into Social Security because you have a pension and will be affected by the WFP?
Are military retirees affected by the WEP rules?
No, you paid into SS.
I knew
What if I taught for less than a year when I was 22, and teachers’ pension plan refunded my $200?
Can someone collecting WEP then collect half of their spouses SS when they start collecting
Retired Federal employees who are the Civil Service Retirement System (CSRS) which provides retirement benefits for all Federal employees through January 1, 1987, and on that date new Federal employees receive retirement benefits under the Federal Employees Retirement System (FERS). CSRS retirees have not paid Social Security taxes and therefore are affected by the WEP which was signed into law April 21, 1983, while FERS retirees who have paid Social Security taxes are not affected by the WEP. Those Federal employees who receive retirement benefits under CSRS work private sector job before, during and after retiring from Federal service are also denied full Social Security benefits.
Until I became aware that retired state employees also carry the WEP financial burden, I thought that the Federal workforce being targeted by Congress to create additional funding to the Social Security system by Social Security taxes from new employees covered by FERS. What has happened though is that members of Congress are receiving complaints from constituents affected by the WEP as these constituent become eligible for Social Security benefits including those states that whose public servants pay Social Security taxes and are pressuring those members of Congress to pass legislation to repeal the WEP..
This was a cost saving law. SS is still lacking money.
Will a minors pension effect social security income?
i'm on disability ... i reach max retirement age at 67 ... is that when i apply for social security or do i wait til i'm 70 ???? 😎🖖👍👌✌🤓
The switch should be automatic at your full retirement age (somewhere between 66 and 67 based on your year of birth). 👍
I applied at 62.
Name switched, amount the same
My opinion,, this WEP is unfair but I have to accept this UNFAIR system. Here’s the scenario,, my wife retired fm county government that did not contribute to Social Security. Prior years, she worked a combined total of 14 years in various private employers. She claimed her SS at age 65 and her monthly pension was calculated at $900.00 minus WEP penalty of $600.00🥲. Her current SS pension barely pays for MEDICARE premium. She contributed to SS for 14 years and she should be receiving the whole SS pension .
Hi, I thought maximum WEP deduction is $512. How can your wife lose $600? Is this correct?
Also, maximum WEP deduction CANNOT exceed 50% of her benefit. Which would be maximum of $450. Is this wrong?
14th Amendment should apply.
I am more pissed about the government offset provision GOP.
I’ll cover that soon!
😎🖖👍👌✌🤓😎🖖👍👌✌🤓
This is bullshit.
This makes the fifth video that I've seen and I'm no closer to figuring this out than I was when I started. The system is intentionally confusing to screw people.
this also affects federal employees. tell the full story
This doesn't effect those that went under the new pension FERS in 1986.They pay into SS.
@@SandfordSmythe So, those that it does effect can just be ignored?
@@user-rf2ko8hr1n Your thesis, your responsibility.
@@SandfordSmythe thaat is Federal only. the public employees are stiil effected by this.
@@SandfordSmythe most of those under FERS have not retired yet.