Impact of WEP on Spousal Social Security Benefits
May 11, 2022If Roger (born 09/01/1950) has a non-covered pension and drawing less in SS because of WEP , does that affect Ann’s SS? I am thinking Ann (born 08/07/1956) should take hers at FRA which is 66 & 4 months and would receive 50% of Roger’s unadjusted SS. Do you agree? And what date should she use when applying for SS? She will need to backdate it to her 66- & 4-month age.
It appears Ann is only eligible for benefits on her own work record. If she qualifies for spousal benefits, these would be based on 50% of Roger’s WEP-adjusted Primary Insurance Amount (PIA). Given that her own PIA is $995, the spousal benefit calculation would not be based on Roger’s full, unadjusted SS benefit but rather the reduced amount due to the Windfall Elimination Provision (WEP).
For her Social Security filing, if Ann wishes to start her benefits at her Full Retirement Age (FRA), she should consider backdating her application to December 2022, which is when she attained her FRA of 66 years and 4 months. Filing before July 1st would allow her to receive retroactive benefits starting from that date.
Ann’s decision to take benefits at her FRA ensures that she receives the full benefit amount she is entitled to, but it’s important to remember that the spousal benefit will be impacted by Roger’s WEP-reduced PIA, not his original Social Security amount.
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