When Will My WEP Reduction Apply?

Jul 23 2017 - 11:10am

If I start collecting SS at age 62, but continue working full time at my current non contributing SS CALpers job, will WEP deductions apply or only after I retire and start collecting my pension?


The WEP (Windfall Elimination Provision) reduction wouldn't apply until you start drawing your non-covered pension, however, your Social Security benefits could be subject to withholding due to the earnings test until you reach full retirement age (FRA). Specifically, if you filed at age 62 this year and continued working, Social Security would withhold $1 of your benefits for each $2 that you earn in excess of $16,920 in 2017 (https://www.ssa.gov/planners/retire/whileworking2.html).

The maximization software available on this website is fully programmed to handle both the WEP provision and the Social Security earnings test, so you should strongly consider using it to determine your best filing strategy.

Best, Jerry