WEP elimination

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Q. What are the chances of the windfall elimination provision being eliminated?

A. Not very good. Here’s why: Before the law was changed in 1983, employees who worked in jobs not covered by Social Security had their benefits computed as if they were long-term, low-wage workers. As a result, they received the advantage of a higher percentage of Social Security benefits plus their other annuity. The modified formula used to compute the benefits of those who have fewer than 30 years of substantial earnings under Social Security eliminated this windfall.

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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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