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” pensions.
These money management tips can help you figure out what to do with a windfall of cash from back taxes, a pension payout or an inheritance.
In December 2024, Congress repealed the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), ending policies that for more than four decades reduced benefits for many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 ...
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. About 2.1 million people, or 3 percent of Social Security recipients, had their benefits reduced by the WEP, according to a February ...
Unlike some government pensions, military retirement pay was not subject to the Windfall Elimination Provision (WEP), so former service members did not have their Social Security payments reduced as a result of receiving military pensions.
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If you were collecting Social Security retirement benefits and a non-covered government pension, you might have been subject to the Windfall Elimination Provision. Pensions from jobs where Social Security taxes were collected, be they in the public or the private sector, were never affected by the GPO or the WEP.