Will I Have Any Liability For WEP On Non-Covered Pension Income Received Prior To Starting Social Security?

Mar 3 2017 - 6:30am

I am drawing a pension from Canada. Part of it is for work for Canadian employers (CPP). And part of it is a benefit based on years of residence in Canada (OAS).

I have elected to defer my Social Security benefit for a couple years, when I turn 70. I know I am subject to the WEP then, although by then I will have 27 years of substantial contributions to SS.

But I will draw 2 years of pension benefits from Canada before I start SS. Do I have any liability for WEP on this income? I would like to avoid the surprise of SS saying I owe 2 years worth of WEP offsets retroactively when I apply for my pension in 2018.

John

Hi John,

No, the length of time that you've been drawing a non-covered pension prior to starting your Social Security benefits is irrelevant. Any WEP (https://www.ssa.gov/pubs/EN-05-10045.pdf) reduction to which to are subject applies effective with the first month that you are entitled to both your Social Security benefit and the non-covered pension.

Best, Jerry