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WEP & GPO

Understanding the Windfall Elimination Provision and How It Affects Public Employees

Verified against SSA POMS as of July 28, 2026

The short answer

Windfall Elimination Provision (WEP) modified the calculation of Social Security benefits for individuals receiving pensions from employment not covered by Social Security. Typically, Social Security benefits are calculated using a percentage formula: 90% on the first portion of average earnings, 32% on the second, and 15% on the remainder. Under WEP, for those with fewer than 30 years of substantial earnings covered by Social Security, the 90% factor was reduced to as low as 40%, depending on the number of substantial years of coverage (YOC), see RS 00605.360C.2. The Social Security Fairness Act, effective January 2025, repeals WEP for all benefits paid from that date onward.

What is the Windfall Elimination Provision?

The Windfall Elimination Provision (WEP) reduced the Social Security retirement or disability benefits of a worker who also received a pension based on employment not covered by Social Security. WEP applied if: a worker became eligible for Social Security retirement or disability benefits after 1985 and also became eligible for a pension from non-covered employment during the same period, as outlined in RS 00605.360C.1.

Source
RS 00605.360 View source ›

How is the WEP Primary Insurance Amount Calculated?

The WEP modified the calculation of Social Security benefits by altering the percentage used in the first band of the calculation. For workers with fewer than 30 YOCs, the usual 90% factor used in the formula is reduced to between 85% and 40%, depending on exact years of covered service. The recalculated benefit formula is: 90% (or less) on the first part of average earnings, 32% on the next part, and 15% on the remainder, as detailed in RS 00605.360C.2.

Source
RS 00605.360 View source ›

Who is Exempt from the WEP?

The WEP did not apply if an individual had 30 or more years of substantial Social Security-covered earnings. It was also not applicable to certain pensions, including those from the Railroad Retirement Act, federal employees mandated to join Social Security post-1984, certain nonprofit employees, and survivor benefits, as highlighted in HBK 0718.

Source
HBK 0718 View source ›

Repeal of the WEP under the Social Security Fairness Act of 2023

As of January 2024, the Windfall Elimination Provision is repealed according to the Social Security Fairness Act of 2023. This change means that Social Security benefits will no longer be reduced for those receiving pensions from non-covered employment, detailed in both RS 00605.360A and GN 01701.305.

Source
RS 00605.360 View source ›

Impact on Retired Public Employees

Prior to the repeal, WEP affected public employees who worked in jobs that did not pay into Social Security but had enough credits under Social Security on other earnings to qualify for a benefit. WEP ensured that these employees did not receive a 'windfall' via the Social Security benefits' formula that favors low earners. It is articulated in NL 00725.485.

Source
NL 00725.485 View source ›

Frequently asked

How did WEP affect my Social Security benefits?

WEP reduced your Social Security benefits if you also received a pension from employment that wasn't covered by Social Security. The reduction depended on your years of substantial earnings under Social Security.

Who is impacted by the repeal of WEP?

Individuals receiving Social Security benefits from January 2024 onwards will not experience reductions due to WEP.

Did WEP affect disability benefits?

Yes, WEP could modify disability benefits similarly to retirement benefits if you had a pension from work not covered by Social Security.

When did the WEP not apply?

WEP did not apply if you had 30 or more years of substantial earnings covered by Social Security, or if your pension was from the Railroad Retirement Act.

What if I have a Totalization agreement pension?

WEP may not have apply if your foreign pension is based on non-work factors like residency or citizenship, as in GN 01701.320.

Reviewed by: Jason Stanley.  ·  Source data last verified: July 28, 2026, against the live SSA POMS.  ·  This page is part of the ARPI Knowledge Base and is reviewed on a quarterly cycle for accuracy against current SSA guidance.
The Advanced Retirement Planning Institute (ARPI) Knowledge Base provides authoritative educational reference material based on SSA POMS, CFR Title 20, the SSA Handbook, CMS regulations, and Medicare.gov guidance. Not individualized legal, financial, or benefits advice — verify current rules with the Social Security Administration or Medicare.gov before making filing decisions.