SSA Windfall Elimination Provision:     The Windfall Elimination Provision is complicated in execution, but simple in theory: It’s supposed to prevent Social Security recipients from “double dipping” – getting a full pension from both Social Security and an employer that didn’t participate in Social Security, like a government agency or non-U.S. employer.

WEP eliminates this “windfall” by reducing your Social Security payments.  If you worked your entire career in jobs subject to Social Security withholding, you can stop reading. WEP won’t apply to you. It also won’t apply if you were a federal worker hired after Dec. 31, 1983, or if you paid into Social Security for 30 years and had “substantial” income.

What they deem “substantial” changes yearly. For example, in 1955 it was $1,050. For 2013 it was $21,075.  Refer to the tables in  http://www.ssa.gov/pubs/EN-05-10045.pdf  for all years.  There are other exceptions to WEP. If you think you might be subject to it, visit the previous  link to read them all.

If WEP does apply to you, it will reduce your monthly Social Security payments. There’s a chart on the Social Security website http://www.ssa.gov/retire2/wep-chart.htm#earn explaining how much, but the maximum possible reduction for 2013 is $395.50 per month. For additional information on the WEP refer to http://www.ssa.gov/pubs/EN-05-10045.pdf.