4 Years of earnings are indexed up to the second calendar year before the year of earliest. (See the information from Social Security on the “Windfall Elimination Provision” at for more. , January , ICN  Get Accessible Adobe from your salary, such as a government agency or an employer in another country, the .
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But almost all of these folks are not lifetime low-income workers like my neighbor’s maid, Maria. Past questions and answers are left on Rumor Central for reference. puns
We treat all calls confidentially. To explain the reason for the law, I’ve got to start out telling you a true story. Average-income people get a return rate in the 40 percent range. That makes me look as poor as Maria, and that’s why I’d normally get the same 90 percent return rate. So poor people get a rate of return that can be up to 90 percent. Will my State pension lower the amount of my Social Security benefit?
And that’s what the windfall elimination provision is all about. The sum of the three amounts equals the total monthly payment amount.
There are some people who divided their careers between Social Security-covered jobs and non-Social Security-covered jobs. Views Read Edit View history. I had a decent-paying government job most of my life that isn’t reflected in my Social Security earnings history. You should get a rate similar to all average-income Americans — about 40 percent.
The Social Security benefit formula uses a year base. Social Security United States. They are both 66 years old. This page was last edited on 22 Aprilat There is a companion law called the “windfall elimination provision,” more commonly known by its acronym, WEP, which usually reduces any Social Security retirement benefits earned at side jobs by folks who spent the bulk of their life working at a job that was not covered by Social Security.
You would only be affected by the WEP if you earned a pension from other employment and did not pay social security taxes while in that position. See the first table that lists the amount of substantial earnings for each year. Choose the percentage of the first bend-point to be the higher of the percentage based on the eligibility year or the percentage based on the YOCs acquired.
The reduction in your Social Security benefit cannot be more than one-half of the amount of your pension based on your earnings after on which you did not pay Social Security taxes.
Windfall Elimination Provision
I spent the bulk of my life working for the federal government. Looking for a newsletter article? At the bottom of the home page, click the “Publications” link. There are a number of things you can do online.
It’s a law that makes perfect sense. And that includes a WEP reduction, pube I will explain.
Windfall Elimination Provision
And now that I am retired, I get a monthly civil-service pension. But let’s be honest: That is accomplished via a benefit formula structured to give poor people a better deal than their wealthier counterparts.
Writer and mother Annie Lane writes in a voice that’s sympathetic, funny and firm, offering common-sense solutions to life’s dilemmas. The Social Security Amendments of Public Law provided for the WEP as a means of eliminating the “windfall” of social security benefits received by beneficiaries who also receive a pension based on work not covered by Social Security. For more information, the Social Security Administration website is www. I currently have about 15 years of Social Security covered employment.
Even though Maria gets a much smaller Social Security benefit than Frank, she might pubz some comfort knowing that she is getting a better deal out of the program than he is.
I don’t have the space to get into the oubs gritty of the Social Security benefit computation formula in this column today. One final note on this topic: I should get the same rate of return about 40 percent as Frank gets, and for that matter, as all other average-income Americans get. But folks such as myself, who were goc before then, were covered by the civil service retirement system, not Social Security.
The Special Minimum PIA, intended to assist individuals with low earnings over their working life, tov been in effect on all benefits payable since January Submit a Rumor Central Question. However, the two are technically unrelated. Or to put that another way, Maria’s Social Security check represents a higher percentage of her lifetime earnings than Frank’s monthly benefit.
Ten years of Social Security work is the minimum. I’ve done it in many past columns.