Oct 10, 2018 · The Windfall Elimination Provision (WEP) was a formula that could reduce the size of your Social Security retirement or disability benefit if you also received a pension from a job in which you did not pay Social Security taxes. Congress voted in December 2024 to repeal the WEP, ending benefit cuts for those receiving such “non-covered ...

What's the Social Security Windfall Elimination Provision? If you qualify for Social Security and collect a pension from a job that doesn’t pay FICA taxes, your Social Security income will be reduced but not eliminated.

Oct 10, 2018 · Active-duty military personnel have been covered — paying Social Security taxes on their service pay — since 1957, so the WEP was never a factor. Similarly, military retirement pay did not trigger the Government Pension Offset , another now-defunct SSA rule that could reduce Social Security spousal or survivor benefits for people who also ...

In December 2024, Congress repealed the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), ending policies that for more than four decades reduced benefits for many people who qualified for both Social Security and a pension from a “non-covered” job where they did not pay into Social Security via FICA withholding ...

Oct 10, 2018 · But in December 2024, Congress passed the Social Security Fairness Act, which repealed the GPO and a related rule, the Windfall Elimination Provision (WEP). The law ends benefit reductions based on government pensions and retroactively covers 2024 benefits, meaning affected recipients will be repaid for that year’s withholding.

This section of AARP’s Social Security Resource Center breaks down how work, pensions and taxes affect your benefits. You’ll find easy-to-understand answers on: Social Security’s earnings limit and how it works; The Windfall Elimination Provision and the Government Pension Offset; How much of your income is subject to Social Security taxes

Oct 10, 2018 · The Windfall Elimination Provision primarily affected retirees from state and local government agencies that do not participate in FICA withholding and federal workers hired before 1984, when the U.S. civil service was brought under the Social Security system.

Oct 5, 2022 · Until recently, there were eight items in this list, but in December 2024 Congress repealed two Social Security rules — the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) — that reduced monthly benefit payments for millions of people who collect pensions from public-sector jobs.

Jul 11, 2019 · It’s also the number from which your benefits are reduced, if you have a government pension and are subject to the Windfall Elimination Provision or Government Pension Offset. When you’re working, each year of higher earnings replaces one of your lower-earning years, so your average earnings rise.

Qualifying for Social Security, calculating payments and when to apply Dive into the key factors that shape your Social Security benefits as you prepare for retirement, from early-filing penalties to cost-of-living adjustments.