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Old 01-08-2017, 01:10 PM
 
6,885 posts, read 7,289,708 times
Reputation: 9791

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I still just don't get how the Windfall Elimination Provision (abbreviated WEP) works.
Basically I just want to know if it will affect me if I get a government job (state, fed, or municipal) -- late in my working life.

I'm 56 and taking a voluntary buyout from my job, and relocating. Eventually, I will have a small private company pension coming, and social security.

IF I get a federal job now at 56 -- and work -- say another 10 years or so. Will the windfall provision affect me later, when I finally do retire?

IF so, is there a certain time marker as to when it kicks in -- OR a certain amount that a pension needs to be before it kicks in? Should I make sure I DO NOT work longer than "x" years for example, or if my pension is below "x" amount it won't affect me?

Thanks for the help. I don't know why I've always found WEP so confusing.
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Old 01-08-2017, 01:28 PM
 
1,183 posts, read 762,904 times
Reputation: 3403
from the ssa website:
"If you work for an employer who doesn’t withhold Social Security taxes from your salary, such as a government agency or an employer in another country, any pension you get from that work can reduce your Social Security benefits."

the federal retirement system changed a long time ago, all employees hired under the "new" FERS system pay into social security.
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Old 01-08-2017, 01:41 PM
 
Location: Albuquerque NM
1,661 posts, read 1,527,824 times
Reputation: 3650
If you have an opportunity for a federal position, I would accept it immediately. There will be a hiring freeze with the new administration and very likely to be significant changes to the retirement system.
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Old 01-08-2017, 03:37 PM
 
Location: OH>IL>CO>CT
5,238 posts, read 8,413,404 times
Reputation: 7191
You may not be subject to WEP.

Federal jobs for new hires have been under SS since 1984.

Per SSA, "The Windfall Elimination Provision doesn’t apply if:
--You’re a federal worker first hired after December 31, 1983;
or
--You have 30 or more years of substantial earnings under Social Security."

If you have over 30 years credit in SS with what they call yearly "substantial earnings", then WEP will not apply. "Substantial Earnings" range from $1200 in 1965 to $22,050 in 2016.

See quoted info and chart at https://www.ssa.gov/pubs/EN-05-10045.pdf
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Old 01-08-2017, 07:16 PM
 
Location: Central Massachusetts
4,800 posts, read 4,851,516 times
Reputation: 6379
Quote:
Originally Posted by selhars View Post
I still just don't get how the Windfall Elimination Provision (abbreviated WEP) works.
Basically I just want to know if it will affect me if I get a government job (state, fed, or municipal) -- late in my working life.

I'm 56 and taking a voluntary buyout from my job, and relocating. Eventually, I will have a small private company pension coming, and social security.

IF I get a federal job now at 56 -- and work -- say another 10 years or so. Will the windfall provision affect me later, when I finally do retire?

IF so, is there a certain time marker as to when it kicks in -- OR a certain amount that a pension needs to be before it kicks in? Should I make sure I DO NOT work longer than "x" years for example, or if my pension is below "x" amount it won't affect me?

Thanks for the help. I don't know why I've always found WEP so confusing.
No all current federal employees are not affected by WEP or GPO (government pension offset). State and municipal jobs are depending on the state.
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Old 01-17-2017, 12:14 AM
 
1 posts, read 604 times
Reputation: 10
Please sign the petition, Repeal the Windfall Elimination Provision (WEP), and demand adoption of HR1795 and S896 by congress.
Take a look at the petition link below and add your name:

[url=http://petitions.moveon.org/sign/repeal-the-windfall-eliminat-1?source=s.fwd&r_by=17489955]MoveOn Petitions - Repeal the Windfall Elimination Provision (WEP), and demand adoption of HR1795 and S896 by congress.[/url]
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Old 01-19-2017, 08:07 AM
 
7,185 posts, read 2,757,042 times
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All new hires in the federal system are now covered under Social Security, so WEP no longer applies for them. WEP and GPO still apply to those who worked under the old system, with a pension that was not covered under Social Security.

Since you would be a new hire, you would not be subject to either WEP or GPO - unless you have a pension where you didn't pay into Social Security from a different job in your past.
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Old 01-19-2017, 12:34 PM
 
Location: Wasilla, AK
7,266 posts, read 4,150,962 times
Reputation: 15701
Quote:
Originally Posted by reed303 View Post
You may not be subject to WEP.

Federal jobs for new hires have been under SS since 1984.

Per SSA, "The Windfall Elimination Provision doesn’t apply if:
--You’re a federal worker first hired after December 31, 1983;
or
--You have 30 or more years of substantial earnings under Social Security."

If you have over 30 years credit in SS with what they call yearly "substantial earnings", then WEP will not apply. "Substantial Earnings" range from $1200 in 1965 to $22,050 in 2016.

See quoted info and chart at https://www.ssa.gov/pubs/EN-05-10045.pdf

This is the correct information. Get a printout of your earnings history and compare it to the amount that is considered substantial earnings. If you have 30 or more good years, you're golden. Even if you don't, at your age, your pension won't be that much, so the impact will be minimal. This only matters if your state has its own retirement system and doesn't contribute to SS. And if you get a federal job, WEP will also not be a factor.
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