Estimate the Social Security Reduction

(from Government Pensions)

You are an employee with a government pension. You also have Social Security. With your government pension, you may receive less Social Security in retirement.

How much less? Here’s a way to estimate.

You will need:

- Your most recent Social Security statement (with benefits estimates)

- The pink Social Security handout called “Windfall Elimination Provision”

- A cup of coffee or something stronger

- A sense of humor

- 30 minutes of free time

- Nothing better to do

1. Find your Social Security statement (it comes about 3 months before your birthday each year)

2. Turn to page 3 – “Your Earnings Record at a Glance.” Find the column marked “Your Taxed Social Security Earnings.”

3. Get the pink Social Security handout called Windfall Elimination Provision. Turn to the chart which lists “substantial earnings” amounts over the years.

4. Compare “Your Taxed Social Security Earnings” with the amount designated as “substantial earnings” on a year-by-year basis. Get your total number of years of “substantial earnings.”

5. Use that total number of years to find the percentage by which to multiply your monthly estimated Social Security retirement. The result gives an estimate of your Social Security benefits after the WEP reduction.