I have been contributing to both Social Security and a non-covered pension (Calstrs). The non-covered pension is in a cash balance plan that allows me to take the benefit as a 3 to 10 year term annuity.

I was told by my local Social Security office that if I wait to start collecting Social Security until after the annuity from Calstrs ends, I won't have a WEP deduction on my social security benefit. Is this correct?

For example, if I begin collecting my Calstrs 5 year annuity at 58 and don't start collecting Social Security until 65, will I still have a WEP deduction?

Thanks

Hi. Yes, it sounds like what they told you is correct based on your description. Basically, any Windfall Elimination Provision (WEP) reduction would only apply in months that you're paid both Social Security retirement or disability benefits and a non-covered pension. Sometimes, though, WEP can still apply even after a person stops receiving payments from their pension plan if they receive a lump-sum payment in lieu of a pension. In the case of lump sum payments, Social Security prorates the lump sum over period of years (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605364).

However, if your pension is just payable for a set number of months or years and if that period ends before you start drawing your Social Security benefits, then WEP wouldn't apply to your benefit rate. Keep in mind, though, that I'm basing my answer solely on the limited information in your question. If there is something I'm unaware of with regard to your pension options, that could change how Social Security would treat your pension for WEP purposes.

Best, Jerry