Q. I am retired under CSRS, and have more than 40 credits of Social Security accrued. I am almost 62, and want to apply for Social Security benefits. How much will the windfall elimination provision hit me for? I spoke to several other CSRS retirees, and only a few said they took a 60 percent reduction, while some took no reduction. I can’t figure why each case appears to take a different amount off due to WEP.
A. Anyone who receives an annuity in whole or part from a retirement system where he didn’t pay Social Security taxes is subject to the windfall elimination provision. The WEP reduces but doesn’t eliminate the Social Security benefit of anyone who has fewer than 30 years of substantial earnings under Social Security. For more information about the WEP and how it works, go to http://ssa.gov/pubs/10045.html.