I’m a retired CSRS federal employee who took an early out option in 1999. Do you know how much my pension will be cut when I must apply for Social Security?
The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) are two provisions of the Social Security law that affect Social Security benefits to which CSRS retirees may be entitled. The author provides some details about these as they relate to federal employees.
The Windfall Elimination Provision (WEP) means if you are getting a Social Security benefit as well as a pension where you did not pay into Social Security, your Social Security benefit is reduced. The author provides examples of the financial impact this can have on your earnings.
Several readers have asked if they will have a COLA applied to their retirement annuity and to Social Security. Readers have also asked about the Government Pension Offset and Windfall Elimination Provision. This information may be helpful in understanding these complex topics.
The Windfall Elimination Provision (WEP) reduces, but does not eliminate, the earned Social Security benefit of a person who is also receiving a pension from a system where no Social Security payments were withheld.