Will My Deferred Investment Count As A Non-Covered Pension?

Jul 8 2016 - 5:15pm

When I applied for spousal benefits the examiner concluded that a type of deferred investment (like an IRA) by a former employer was considered a "pension" and subsequently reduced this benefit by more than half. I am wondering if this really constitutes a "pension" under the Windfall Elimination Provision? I did not make any contribution if that is an issue. Currently I am delaying taking Social Security but would this determination still hold true at that time.

Hi,

I'm unable to give you a yes or no answer without a lot more information. If this was a defined benefit plan that your employer contributed to, and your wages were exempt from Social Security taxes while you were employed there, then there is a very good chance that it will count as a non-covered pension for purposes of SSA's windfall elimination provision (WEP). For more information on this subject, refer to this pamphlet: https://www.ssa.gov/pubs/EN-05-10045.pdf, and this section of Social Security's operations manual: https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605364.

Best, Jerry