Q. I switched from CSRS to FERS in 1987; don’t ask me why. I retired when I was 55 and now have 24 years of Social Security coverage. I will be 64 this year and am thinking about applying for Social Security — will I be WEP’d — not in terms of boo hoo but the Windfall Elimination Provision? Also, if I work part time and have income of $20,000 or $21,000, will they refigure the WEP deduction? If yes, do they do it annually or when I am 66?
A: When you apply for a Social Security benefit, the windfall elimination provision will be applied if you have fewer than 30 years of substantial earning under Social Security. Earning additional Social Security credits won’t change that. However, your Social Security benefit will be recomputed each year to take into account any additional earnings from wages or self-employment. Note: If you exceed the Social Security earnings limit before you reach your full retirement age, your Social Security benefit will be reduced. To see how the reduction is applied, go to http://ssa.gov/pubs/10045.html.