Does WEP affect spousal benefits?

In addition to reducing a person's retirement (or disability) benefit, WEP can indirectly reduce any spousal benefits based on that person's Social Security earnings record. Notably, the indirect WEP reduction does not carry over to widow(er)'s benefits.

Are spousal benefits subject to Windfall Elimination Provision?

What you may have read is that the Windfall Elimination Provision (WEP) does not directly apply to spousal benefits. WEP can only apply to Social Security retirement or disability benefits payable based on a person's own work record.

Does WEP affect widow benefits?

This amount is adjusted annually by the growth in average wages in the economy, provided a cost-of-living adjustment (COLA) is payable. The WEP affects retired- or disabled- worker beneficiaries and their eligible dependents. However, it does not affect survivor beneficiaries.

Does spouse apply WEP?

The family benefit payable to the spouse of a retired worker subject to the WEP is also reduced, but only while that worker is alive.

Who is affected by Windfall Elimination Provision?

The overwhelming majority of those affected (about 95%) were retired workers. Approximately 3% of all Social Security beneficiaries (including disabled workers and dependent beneficiaries) and 4% of all retired- worker beneficiaries were affected by the WEP in December 2021.

Social Security WEP

What is the maximum WEP reduction for 2020?

The maximum WEP reduction in 2020 is $480. The WEP reduction will never reduce your Social Security benefit to zero. If you have less than 20 years of “substantial earnings” in the Social Security system, the full $480 reduction applies.

What is the max WEP reduction for 2022?

The maximum Windfall Elimination Provision (WEP) deduction for 2022 is $512.

Will WEP be repealed 2021?

H.R. 82, titled the “Social Security Fairness Act,” was introduced in the House of Representatives in January 2021. It aims to eliminate both the WEP and GPO.

Can I receive spousal benefits if I have a pension?

Generally, we won't reduce your Social Security benefits as a spouse, widow, or widower if: Your government pension is not based on your earnings.

Does windfall affect survivor benefits?

WEP does not affect benefits for your survivors. You can learn more about non-covered pensions and WEP on our Information for Government Employees page.

Is the Windfall Elimination Provision going to be repealed?

January 4, 2021, Congressman Rodney Davis (R-IL-13) introduced H.R. 82 to repeal the WEP and GPO. It is important that CalRTA continues to push our California Representatives to sign on as co-sponsors. Check the list of co-sponsors to see if your representative is listed.

What is the max WEP reduction for 2021?

For 2021, the maximum WEP reduction at full retirement age (FRA) is $498, up from $480 in 2020.

Does WEP or GPO affect survivor benefits?

Survivor benefits are not adjusted for the WEP . The GPO adjustment is calculated by subtracting two-thirds of the value of the noncovered-work pension from the pensioner's spouse or survivor benefit.

How much will my Social Security be reduced if I have a pension?

We'll reduce your Social Security benefits by two-thirds of your government pension. In other words, if you get a monthly civil service pension of $600, two-thirds of that, or $400, must be deducted from your Social Security benefits.

Which states have no Windfall Elimination Provision?

Currently those states include Alaska, California, Colorado, Connecticut, Georgia, Illinois, Kentucky, Louisiana, Maine, Massachusetts, Missouri, Nevada, Ohio, Rhode Island, and Texas. There are some exceptions, but government employees in all the other states now pay into Social Security.

What percentage of Social Security is spousal benefit?

You can receive up to 50% of your spouse's Social Security benefit. You can apply for benefits if you have been married for at least one year. If you have been divorced for at least two years, you can apply if the marriage lasted 10 or more years. Starting benefits early may lead to a reduction in payments.

What are the rules for spousal benefits of Social Security?

What income reduces Social Security benefits?

If you are younger than full retirement age and earn more than the yearly earnings limit, we may reduce your benefit amount. If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2022, that limit is $19,560.

Can my wife collect spousal Social Security benefits before I retire?

No. You have to be receiving your Social Security retirement or disability benefit for your husband or wife to collect spousal benefits.

How do I get around WEP?

Another possible way to avoid WEP is to have at least 30 years of Social Security covered earnings that are high enough to count as a year of coverage (YOC) according to WEP guidelines (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605362).

Can WEP reduce Social Security to zero?

By law, the Windfall Elimination Provision cannot cut your Social Security payment by more than half of the amount of your monthly pension, and it cannot zero out your retirement benefit.

Has the WEP been eliminated?

H.R. 5834: Equal treatment of Public Servants Act of 2021. Reforms the Windfall Elimination Provision (WEP) by providing a monthly payment of $100 to current WEP-affected beneficiaries (age 62 or older before 2023) and $50 for an affected spouse or child.

Is it better to take Social Security at 62 or 67?

The short answer is yes. Retirees who begin collecting Social Security at 62 instead of at the full retirement age (67 for those born in 1960 or later) can expect their monthly benefits to be 30% lower. So, delaying claiming until 67 will result in a larger monthly check.

What is considered substantial earnings for WEP?

This provision reduces your Social Security benefits if you have less than 30 years of “substantial” coverage and earned a CSRS federal retirement benefit. Substantial earnings equaled $2,250 dollars in 1972 and $26,550 in 2021. A complete list of substantial years is included below.