THE WINDFALL ELIMINATION PROVISION

How It Affects Your Social Security Retirement or Disability

If you work for an employer who doesn't withhold Social Security taxes, the Pension you get such as Pers 1, 2, and 3, may reduce your Social Security benefits.

Your benefit can be reduced in one of two ways. One is the "government pension offset" and applies only if you receive a government pension and are eligible for Social Security benefits as a spouse or widow(er). For more information on the offset, ask Social Security for the factsheet, Government Pension Offset (Publication No. 05-10007).

The other way -- the "windfall elimination provision"--affects how your retirement or disability benefits are figured if you receive a pension from work not participating in Social Security. The formula used to figure your benefit amount is modified, giving you a lower Social Security benefit.

Who Is Affected

The windfall elimination provision primarily affects people who earned a pension from working for a government agency and also worked at other jobs where they paid Social Security taxes long enough to qualify for retirement or disability benefits.

The modified formula applies to you if you reach 62 or become disabled after 1985 and first become eligible after 1985 for a monthly pension based in whole, or in part, on work where you did not pay Social Security taxes. You're considered eligible for a pension if you meet the pension requirements, even if you continue to work.

The modified formula is used to figure your Social Security benefit beginning with the first month you get both a Social Security benefit and the other pension. For more information see www.ssa.gov/pubs/10045.html