Hi Larry,
I worked for a US multi-national company in Canada and then was transferred to the US 21 years ago. While working in Canada, the equivalent of social security taxes were paid by my employer and myself into the Canadian government's Canada Pension Plan (just as is done here with Social Security). Due to this employment I am entitled to CPP benefits. I am also entitled to a small defined pension from my employer in Canada. Does SSA count both my CPP and my private employer's pension plans for WEP offset or only my CPP? I am assuming only my CPP since I paid the equivalent of social security type taxes (CPP) in Canada and in the US Social Security does not reduce my US social security benefit due to having a private employer pension (e.g. a profit sharing pension) here. Is this correct? Thank You.

Hi,

I've never encountered that specific situation before, but if the defined benefit plan included contributions from your employer then I believe that it would count for WEP (Windfall Elimination Provision) purposes since your earnings there weren't subject to U.S. Social Security taxes (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605360). As I say, though, I can't be 100% certain of how Social Security would rule on your case.

Unless you meet an exception to WEP (https://www.ssa.gov/pubs/EN-05-10045.pdf), your CPP pension would certainly be counted for WEP purposes. Therefore, it won't matter whether or not Social Security also counts your employer pension unless the WEP guarantee provision is involved. The WEP guarantee basically provides that your Social Security retirement benefit rate can't be reduced by more than half of the amount of your non-covered pension(s) (i.e. pensions based on earnings that were exempt from U.S. Social Security taxes). But, the guarantee only comes into play if the normal alternate benefit calculation used when WEP applies would lower your benefit rate by more than half of the amount of your non-covered pension(s).

Best, Jerry