July 4, 2020 — Our friend Robert Powell at TheStreet.com just wrote a very helpful article for people who worked for governments or non profits and did not pay into Social Security for much of their work lives. They are usually concerned that they won’t get Social Security retirement payments. In “Did You Work for a Government and Not Pay Social Security“, Powell writes to straighten out some misconceptions.
The Windfall Elimination Provision (WEP) reduces your Eligibility Year (ELY) benefit amount before it is reduced or increased by early retirement, delayed retirement credits, cost of living adjustments (COLA), or other factors. If applied, your Social Security retirement payments will be lowered.
Not to worry if:
You have 30 years of substantial Social Security earnings. Your SS benefit will not be reduced
You will still get some benefit if:
You have 40 Social Security earning quarters. Your benefit might be reduced by up to $480, but you will still get most of your benefit. The more quarters you have credit for the less the WEP taken out.
You won’t get any benefit if:
You have less than 40 Social Security earning quarters. This number is the eligibility cutoff for any worker hoping to Social Security retirement benefits.
For further reading: