WEP Reduction Estimator
Pension, service, bend point to WEP cut.
What it does
Two careers, two pensions, one haircut: the Windfall Elimination Provision trims Social Security for workers with non-covered pensions. A service-year factor sets the cut with a half-pension cap. Three inputs preview it.
The tool above takes monthly pension, substantial-earnings years, and your first bend point, then prints the WEP factor with the maximum monthly cut. Thirty years restores 90 %; twenty or fewer take 40 %.
Social Security publications with retiree-advocacy guides carry this same factor ladder and pension cap. Bend points index yearly, so the page asks for your record figure instead of hardcoding one.
Estimate here, file with SSA. Claiming age, spousal rules, and yearly bend points all move final checks, and Government Pension Offset plays a separate game on survivor benefits.
How to use
- Enter monthly non-covered pension.
- Enter substantial-earnings years.
- Enter first bend point dollars.
- Read WEP factor and max cut.
- Compare the cap with the formula.
- Confirm with SSA before filing.
Formula
- pension
- Monthly non-covered pension in dollars.
- service
- Years of substantial covered earnings.
- bend
- First bend point dollars for your year.
Factor is 40 % at 20 or fewer substantial years, plus 5 points per year to 90 % at 30. Reduction is the factor gap times the first bend point, capped at half the monthly pension. Enter your record bend point.
Worked example
Example: 22 years, $2000 pension
$2000 pension, 22 years, $1200 first bend point.
- Pension is $2000/mo with 22 substantial years.
- Factor: 40 + 5 x (22-20) = 50 %.
- Cut: (0.90 - 0.50) x 1200 = $480.
- Cap check: half pension is $1000, so $480 stands.
- At 30 years the factor returns to 90 %.
Reference table
| Service | Factor | Note |
|---|---|---|
| 20 or fewer | 40 % | Maximum cut zone |
| 21 to 25 | 45 to 65 % | 5 points per year |
| 26 to 29 | 70 to 85 % | Climbing out |
| 30 or more | 90 % | No WEP cut |
Limits
- Estimator only. Bend points index yearly.
- Spousal and survivor rules separate (GPO).
- Claiming age moves final checks.
- Confirm with SSA before filing.
Common mistakes
- Using a stale bend point.
- Forgetting the pension cap.
- Mixing WEP with GPO rules.
- Ignoring the 30-year exit.
- Filing without SSA confirmation.
Try it yourself
Quick checks. Answers sit tucked under each question.
$3000 pension, 18 years, $1200 bend?
Factor is 40 %. Cut is min(1500, 0.50 x 1200 = 600): $600.00.
$1000 pension, 30 years, $1200 bend?
Factor is 90 %. Gap is zero, so cut is $0.00. Thirty years exits WEP.
Questions
What is WEP?
The Windfall Elimination Provision trims Social Security for pensions from non-covered work. It swaps the 90 % first-bend factor down by service years, capped at half the pension.
Who escapes WEP?
Thirty or more years of substantial earnings restores the 90 % factor fully. Twenty or fewer take 40 %; years 21 to 29 climb 5 points each.
Which bend point do I use?
The Social Security bend point for your eligibility year, printed on statements and notices. It indexes yearly, so enter the figure from your record.
What is the pension cap?
Half the non-covered monthly pension. A $480 formula cut against a $2000 pension stands; against an $800 pension it drops to $400.
Does WEP touch spousal benefits?
No. Government Pension Offset hits spousal and survivor benefits separately with its own two-thirds rule. Both can bite one household.
How do I verify the result?
Earnings record, pension statements, and the SSA estimator side by side. Rules shift by claiming age and year, so confirm before filing.