Are 'Substantial Earnings' For WEP Based On Actual Earnings Or Indexed Earnings?

Mar 5 2019 - 4:25pm

hi Larry..when calculating how WEP will reduce Social Security and looking at their table of yearly Substantial Earnings, is it based on actual earnings for each year or indexed for inflation earnings? Thank you,
Robin

Hi Robin,

The annual amount defined as 'substantial earnings' for purposes of the Windfall Elimination Provision (WEP) is based on a person's actual earnings, not their indexed earnings.

Best, Jerry