Windfall Elimination Provision

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Q. I am eligible to retire under CSRS with what is currently 37 years of service (SCD JUL 1982). I am still working and plan to for a couple of more years. However, I became eligible for full Social Security January 2019, for work employed outside of CSRS. Would my CSRS pension (when I retire) be reduced by this amount if I were to sign up for it or is it the Social Security amount that will be reduced or eliminated?

A. If you have reached the age when you are eligible for a full Social Security benefit (between 65 and 67, depending on your year of birth), you can earn as much as you want without it having any affect on your Social Security benefit. However, because you worked under a retirement system where you didn’t pay Social Security taxes, when you retire your Social Security benefit will be subject to the Windfall Elimination Provision of law. To find out how the WEP will reduce that benefit, go to https://www.ssa.gov/pubs/EN-05-10045.pdf. FYI, receiving a Social Security benefit would have no affect on your CSRS annuity.

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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.

8 Comments

  1. Start taking your SS now. You will not be hit by WEP until you retire from your CSRS job and start getting that annuity. Until then, you can enjoy your full SS.

  2. I’m 62 years old, CSRS Offset, if I have a small annuity from my federal employment. Do Social Security still give half of my Social Security entitlement or 100%.

      • Does this applies to my case “Windfall Elimination Provision doesn’t apply if:
        1. You are a Federal worker first hired after Dec.31,1983.
        I’m CSRS Offset . Going 63 in August.
        I am a former non-citizen US Military Base worker. I won’t be asking my HR to credit it. I started working in this agency in 2004 up to the present.
        I have less 30 yrs of substantial earnings.
        Do I have a WEP?
        Thanks

        • No, you don’t. According to the Social Security Administration:

          The Windfall Elimination Provision doesn’t apply if:
          • You’re a federal worker first hired after December 31, 1983.
          • You’re an employee of a non-profit organization who was first hired after December 31, 1983.
          • Your only pension is for railroad employment.
          • The only work you performed for which you didn’t pay Social Security taxes was before 1957.
          • You have 30 or more years of substantial earnings under Social Security.

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