What are “years of substantial earnings”?
To determine your WEP reduction, the Social Security Administration (SSA) looks at your "years of coverage." A year only counts if you earned above a specific dollar amount where you paid Social Security taxes.
The WEP Factor Scale
- 30+ Years: No WEP (90% Factor)
- 21–29 Years: Partial (45%–85% Factor)
- 20 or Less: Max Penalty (40% Factor)
Historical Thresholds
Compare your annual earnings history to these yearly amounts. If you earned more than the amount shown, that year counts as a year of coverage.
| Year | Substantial Earnings |
|---|---|
| 2026 (Est.) | $34,250 |
| 2025 | $33,250 |
| 2024 | $31,275 |
| 2023 | $29,700 |
| 2022 | $27,300 |
| 2021 | $26,550 |
| 2020 | $25,575 |
Pro Tip
Log in to my Social Security (ssa.gov) to download your full earnings record. Do not count years where you only worked in your non-covered pension job.
Last updated: February 2026