Wednesday, July 23, 2014
Many baby boomers that are expecting to retire with ample social security benefits upon retirement, may have to think again. Unfortunately, under the Windfall Elimination Provision (WEP), individuals may not be eligible for all the Social Security benefits that are expected.
Before 1983, people working in both public and private jobs could collect a full pension when they retired, in addition to Social Security, so long as they qualified. However, the enactment of the WEP ended this “double dipping.”
Yet, there is a big exception. You are excepted from the WEP under certain circumstances—one of which is that you had 30 years or more of “substantial” earnings. When calculating this number you must take several things into account including the fact the WEP will never be more than one-half your non-Social Security pension and living adjustments. The age at which you take the benefits also comes into play; retiring at your full retirement age, or later, will change your benefit profile.
See Amanda Alix, Social Security Twist for Boomers with Public, Private Jobs, USA Today, July 21, 2014.
Special thanks to Laura Galvan (Attorney, San Antonio, Texas) for bringing this article to my attention.