The Windfall Elimination Provision Simplified!

This video is for anyone who is interested in what happens when someone has earnings not covered by Social Security. "The Windfall Elimination Provision Simplified!" breaks down W.E.P. into three easy to understand pieces, using non-technical language. Along the way, the video answers many of the most commonly asked questions, helping clarify the Windfall Elimination Provision. Last but not least, the video defines some confusing terms such as Annual Indexed Monthly Earnings (AIME), Government Pension Offset (GPO), Non-Covered Person, Primary Insurance Amount (PIA), Bend Points, Social Security Indexing, Substantial Earnings and of course Windfall Elimination Provision (WEP).

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00:00 Introduction
00:23 History of the Windfall Elimination Provision
01:07 What is a Non-Covered Pension?
01:53 How Much Do You Contribute to Social Security?
02:51 What Are Social Security Bend Points
06:46 How the Windfall Elimination Provision (WEP) Reduces your Social Security Benefit

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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.

[timothypropst]

I worked as an air traffic controller for 25 years. Paid into and received a pension (CSRS). I did not pay SS during that time. I also had other jobs before, during and after my government service. I retired from the government at 49. I worked 16 more years where me and my employees paid full FICA taxes. Now when I’m 65 I retired for good and applied for SS. The estimate at 65 was $1401/month. When I received my letter I only receive $921/month. IMO I am entitled to full amount for both as I paid into both the required amount. It’s the government trying to rig me out of my money. This WEP is complete BS. Penalize people who work hard and long. It’s the new American way.

[jacklu]

This is the most credible retirement advice I have seen on Youtube.

[SomebodySaid...]

This is the best explanation I have heard on the WEP. Thenk you for making it make sense!

[nateCA]

Very clear video! Thanks so much for covering!

[fij]

Never thought I'd comprehend this topic as well as I do know after watching this. Great presentation, thanks.

[dforrest]

This was very clearly explained. My part-time work won’t clear the substantial earnings threshold for most years, but at least I know where I stand with SS now. Basically it’ll cover Medicare costs.

[skibum]

Geoff great video. As a retired fighter this would effect me except that I've already had my 30 years of substantial earnings from my side job so I will get all of my SS as well as my pension. But I will pass the video along to all my friends.

[brandon]

Thank you, this was an excellent explanation. I have a non-covered job and previously misunderstood this topic. I had been under the impression that the Government Pension Offset (GPO) was the rule for this scenario. The math from that rule had me thinking my SS benefits would be reduced to 0. I'm on my spouse's business payroll to earn SS credits, albeit not enough to reach the "substantial income" threshold. Good to know I'll at least get 40%.

[rsg]

I usually agree with you but not today.
Because of the GPO provision, I did not get any widow's benefits, a legacy that my late husband fully expected to leave me to supplement my modest, fixed pension. Under the WEP provision, public employees are not able to receive the benefits expected from years of working long hours after work and on weekends.
Most public administrators did not disclose the consequences of these two provisions on retirement because they knew that doing so would make public service much less attractive. Both provisions need to be repealed.

[buzzbuzz]

This opens a significant amount of questions my wife will needto ask before she retires from teaxhing. Another enlightening video, thank you.

[desertfish]

So glad you covered this topic. As a person who worked private sector and then switched to teaching it will have an impact on me. I tell new teachers to contribute to their 403b but most scoff and say their pension will cover them. When I bring up WEP and GPO they have no idea what I'm talking about. I have several retired friends who did not receive survivor benefits from Social Security when their spouse passed.

[ourblazingworld]

I can't remember if I commented or not. Sometimes I watch from my tv and want to comment but can't. Anyway, thank you for covering this topic. I would like to see more videos that address things like this that address the concerns of people with defined benefit plans (pensions). Sometimes I feel like we are the forgotten children of retirement planning.

[josephcalp]

Thank you for the video. It's really not hard to implement those provisions. Of course people want to receive more for paying less but you want it to bet fair to the wage earners whose whole income are covered earnings.

[RetrieverTrainingAlone]

Excellent. 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.

[johnmaul]

I had no idea that this was a thing. Thanks for covering it. Since the SSA statement doesn't reflect the amount of non-covered earnings how can I be sure of the number of covered earnings that I currently do have?

[mcarleton]

I have a slightly different case. I have over 30 years of covered substantial earnings on my own Social Security record. I also receive a survivor benefit from my wifes non-covered work for the state. Looking at WEP and GPO, it looks like my Social Security benefit will not be reduced by the amount I get from my wife's pension. I would like to know for sure how my survivor benefit impacts my expected SSA payout when I expect to collect on my own record. Most survivor examples I've seen assume the SSA record in question is the one that had non-covered work.

[gregread]

I can't be the only one wondering what the new irs reporting rules are going to be. Seems like there's alot of conflicting information out about the so called 600 dollar limit. I would definitely love to hear your take on this. Perhaps a video?

[janicecantore]

Thank you for this. One question. Is there any difference if the pension is a disability pension or same math?

[saintsandsin]

I just recently heard of this. I am a civil servant and have a pension but my whole career I have always contributed to social security. A guy I worked with who retired from Boston PD told me he never payed into social security up there and I was shocked.

[rockymiller]

Thanks for the information. I am a retired firefighter and didn’t quite understand the whole SS issue. 👍
Would it be wiser to wait until I am 70 years of age to draw SS?