WEP (Windfall Elimination Provision) and teachers

From ???, August 25, 2010
Subject: WEP

Kathie Bracy

In response to your inquiry re: the effect of the windfall elimination provision (WEP) on STRS pension:

1) WEP was initiated in 1983 under the Reagan administration.

2) Government employees (including teachers) who have contributed to the Social Security System throughout a 30-year career (i.e. teaching) are not affected by WEP and thus receive an unreduced Social Security benefit.

3) Government employees (including teachers) who have contributed to the Social Security System during a portion of a 30-year career (i.e. teaching) receive a proportionately reduced Social Security benefit.

Note: Most all state/federal retirement system programs require 30 years of membership with appropriate employee/employer contributions as a condition for unreduced benefits at retirement. Less than 30 years generally results in a reduced benefit under these systems. WEP in effect imposes the same result for state/federal employees with less than 30 years of contributions to Social Security.

4) Benefits received from government retirement programs (i.e state teacher retirement systems) of course, are not affected by WEP.

The following source may be of further assistance:

How The Windfall Provision Can Affect Your Social Security Benefit
(If you paid Social Security tax on 30 years of substantial earnings you are not affected by the Windfall Elimination Provision WEP) www.socialsecurity.gov/retire2/wep-chart.htm.