How WEP works (plain English)

The Windfall Elimination Provision (WEP) is a rule that can reduce your Social Security retirement benefit if you also receive a pension from work that did not pay Social Security payroll taxes (“non-covered work”).

What inputs you need

• Monthly Social Security (before WEP): your estimate shown in your SSA statement (before any WEP adjustment).
• Monthly non-covered pension: pension amount from non-covered work (enter 0 if none).
• Years of substantial earnings: years where your earnings met SSA’s “substantial” threshold.

How this estimate is calculated (v1.1)

Our simplified estimate uses a bend-point style approach in a “good enough for planning” way:

1. We apply a WEP adjustment to the portion up to the first bend point: amountSubjectToWEP = min(benefitBeforeWEP, BendPoint1)
2. We compute reduction using the difference between the standard factor (90%) and your WEP factor (based on years): baseReduction = amountSubjectToWEP × (0.90 − factor(years))
3. We apply the “50% pension” safety cap: finalReduction ≤ 50% of non-covered pension
4. We also prevent negative benefits: finalReduction ≤ benefitBeforeWEP

Why simplified? SSA’s official calculation uses PIA/AIME and full earnings history. This tool is meant for fast planning and “sanity checking,” not replacing SSA.

Learn more: What counts as substantial earnings and WEP vs GPO.

Last updated: 2026-01-21