I received a notice from SSA today informing me that due to the Windfall Elimination Provision that my benefits have been reduced by $427/mo retroactive to my first benefit check, therefore I owe then $6784 in overpayment. I do not receive a pension. I did work as a pastor for 30 years and contributed to a 403B via payroll deduction. I have taken an annual distribution from that for about 3 years. The Church I worked for was a 501C3 corporation. SSA has the impression that I am eligible for a monthly pension-are they talking about my 403B? Also, isn't the 2nd listed exception to WEP working for a non-profit after Dec 31, 1983? When I first applied for benefits, I asked the question about WEP, and SSA got back tome and said the I was exempt. What do I do?

Hi,

Distributions from defined contribution plans such as a 403(b) can in some cases be counted as pensions for purposes of the Windfall Elimination Provision (WEP). I don't have access to enough details about your circumstances to know if WEP has been properly applied in your case, but if a person has a countable defined contribution plan then Social Security generally treats it as a lump sum and prorates it into a monthly rate in order to compute the amount of any WEP reduction (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605364#a).

The WEP exception that you mention applies to employees of non-profit corporations, but if you were a pastor then you were likely classified as self-employed. There is a separate exception that applies to periodic monthly payments received based on services as a minister, but since what you have is a defined contribution plan I don't know if that exception could apply in your case (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605362).

As for what you should do, you may want to consider filing an appeal (https://www.ssa.gov/pubs/EN-05-10041.pdf). The WEP provision is complex, and Social Security can sometimes make mistakes especially if they aren't aware of the full facts involved. I don't know if an appeal will be successful in your case, but at least if you file an appeal your case would be reviewed by someone at Social Security who wasn't involved in the original determination. It would also preserve your appeal rights in case you decide to further pursue your case to a higher level of appeal.

Best, Jerry