Will Working Longer Eliminate the Windfall Elimination Provision (WEP)?

I have a situation where someone has worked and is captured under WEP.  The client is currently 65, and believes that if he works another 6 years, he will collect his full SS benefits and government pension. 

Your client’s understanding that working another six years could allow them to collect their full Social Security benefits alongside their government pension is correct, but it depends on a specific factor: the number of years of “substantial earnings” under Social Security-covered employment.

Understanding the Windfall Elimination Provision (WEP):

The Windfall Elimination Provision (WEP) can reduce Social Security benefits for individuals who receive a pension from work not covered by Social Security, such as certain government jobs. The reduction depends on the number of years the person has earned “substantial” income in a job that is covered by Social Security.

Substantial Earnings:

• 30 Years of Substantial Earnings: If your client accumulates 30 or more years of substantial earnings under Social Security-covered employment, WEP does not apply, and they will receive their full Social Security benefits in addition to their government pension.
• Substantial Earnings Threshold: For 2024, the threshold for substantial earnings is $31,275. This amount changes slightly each year based on inflation.
• Less Than 30 Years: If your client has fewer than 30 years of substantial earnings, WEP will reduce their Social Security benefits. The reduction diminishes as the number of substantial earnings years increases, but the full WEP reduction applies if they have 20 or fewer years of substantial earnings.

Strategy for the Next Six Years:

Your client should review their earnings record to determine how many years of substantial earnings they currently have. If they have between 25 to 29 years, working an additional six years at a level that meets or exceeds the substantial earnings threshold would help reduce or eliminate the WEP reduction. If they already have 30 years of substantial earnings, WEP will not apply, and they will receive their full Social Security benefits.

By continuing to work in a Social Security-covered job and ensuring that their earnings each year are substantial, your client can potentially eliminate the impact of WEP on their Social Security benefits. It’s important for them to monitor their earnings each year to ensure they meet the substantial earnings threshold. This strategy could help them maximize both their government pension and Social Security benefits when they retire.

The content on this blog is for informational purposes only and is not legal, financial, or professional advice. Social Security rules change periodically, so some information may become outdated. For the most accurate advice, consult a certified National Social Security Advisor (NSSA®). Social Security Professionals, LLC, and NSSA® are not responsible for any errors, omissions, or actions taken based on this blog's content. Use of this blog does not create a client relationship, and all information is provided "as is" without guarantees. By using this blog, you agree to hold Social Security Professionals, LLC, and NSSA® harmless from any claims or liabilities arising from its content. For personalized guidance, contact an NSSA® professional.