Social Security

Windfall Elimination Provision (WEP)

If you are eligible for a pension based on work you did for a federal, state, or local government, a nonprofit organization, or in another country and you did not pay Social Security taxes, this pension can affect the amount of your Social Security benefits. We refer to this reduction as the Windfall Elimination Provision, or WEP.

If you paid Social Security taxes on 30 years of substantial earnings, WEP does not apply to you.

Our WEP factsheet explains if WEP may affect you.

How WEP Can Affect Your Benefit

If you think your pension will affect your Social Security benefit, you can:

• Look at our WEP chart below to see how WEP affects Social Security benefits.
• Use our WEP Online Calculator or download our Detailed Calculator to get an estimate of your benefits.

WEP Examples

The Windfall Elimination Provision reduces your Eligibility Year (ELY) benefit amount before it is reduced or increased due to early retirement, delayed retirement credits, cost-of-living adjustments (COLA), or other factors. The following examples show how the WEP reduction changes when other factors affect the ELY benefit.

Retirement Examples

The monthly retirement benefits are increased or reduced based on your age after WEP reduces your ELY benefit.

If you turn 62 in 2022 (ELY 2022) and you have 20 years of substantial earnings, WEP reduces your monthly benefit by $512. (Refer to the chart below.)

Your full retirement age is 67. If your full retirement benefit is $1,396, your ELY benefit after the WEP reduction would be $884 ($1,396 - $512).^*

If You Choose Early Retirement

If you decide to start retirement benefits the month you turn 62, you will get benefits before you reach full retirement age. We reduce your monthly benefit to 70% because you will get benefits for 60 additional months.

Your age 62 retirement benefit is $618 ($884 x 70% = $618) per month. If your full retirement benefit had not been reduced by WEP, your age 62 retirement benefit would have been $977.

If You Choose Delayed Retirement

If you decided to wait to age 70 to receive benefits so you could get Delayed Retirement Credits.

Your eligibility year is still 2022.

If your retirement benefits start after your full retirement age (67), the benefit increases 8% for each year before age 70 that you delay retirement. If your benefits start at age 70, you get credit for the 36 additional months when you did not get benefits and your monthly benefit will be 24% higher.

Your age 70 retirement benefit is $1,096^* ($884 x 1.24 = $1,096). If your full retirement benefit had not been reduced by WEP, your age 70 retirement benefit would have been $1,731.^*

COLA Example

The COLA is added to your monthly benefit amount after WEP reduces your ELY benefit.

How To Use The WEP Chart

The chart is easy to use.

1. Go to the ELY column to find the year you reach age 62 or developed a qualifying disability (if earlier). If your birthday is on January 1st, use the year before you reach age 62.
2. 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 ELY because of the WEP.