Hi Larry, prior to April 30, 2016, I filed and suspended my benefits until age 70 while my wife filed restricted application for spousal benefit. My wife collects spousal benefits, and recently I started to collect non-covered pension benefits. Will WEP reduction reduce our benefits when I reach age 70 or it will apply on the month when I started to collect non-covered pension?

Hi,

Any reduction in your benefit rate caused by the Windfall Elimination Provision (WEP) would take effect with the first month of your entitlement to the non-covered pension. That's true even if your Social Security benefits are in voluntary suspense. Furthermore, if your benefit rate is reduced due to WEP that will also reduce your wife's spousal benefit rate. Your wife's spousal rate is based on 50% of your primary insurance amount (PIA). If your benefits are subject to a WEP reduction that reduction is applied to your PIA, which in turn would cut your wife's spousal rate.

It sounds like you should report the fact that you've started drawing a non-covered pension to Social Security immediately so that your wife's spousal rate can be adjusted in order to prevent any further overpayment of benefits.

Best, Jerry