(over)

2021

Windfall Elimination Provision

Your Social Security retirement or 

disability benefits can be reduced

The Windfall Elimination Provision can affect how we 

calculate your retirement or disability benefit. If you 

work for an employer who doesn’t withhold Social 

Security taxes from your salary, such as a government 

agency or an employer in another country, any 

retirement or disability pension you get from that work 

can reduce your Social Security benefits.

When your benefits can be affected

This provision can affect you when you earn a 

retirement or disability pension from an employer who 

didn’t withhold Social Security taxes and you qualify 

for Social Security retirement or disability benefits from 

work in other jobs for which you did pay taxes.

The Windfall Elimination Provision can apply if:

• You reached age 62 after 1985; or

• You became disabled after 1985; and

• You first became eligible for a monthly pension 

based on work where you didn’t pay Social Security 

taxes after 1985. This rule applies even if you’re 

still working.

This provision also affects Social Security benefits for 

people who performed federal service under the Civil 

Service Retirement System (CSRS) after 1956. We 

won’t reduce your Social Security benefit amounts if 

you only performed federal service under a system 

such as the Federal Employees’ Retirement System 

(FERS). Social Security taxes are withheld for workers 

under FERS.

How it works

Social Security benefits are intended to replace only 

some of a worker’s pre-retirement earnings.

We base your Social Security benefit on your average 

monthly earnings adjusted for average wage growth. 

We separate your average earnings into three amounts 

and multiply the amounts using three factors to 

compute your full Primary Insurance Amount (PIA). 

For example, for a worker who turns 62 in 2021, the 

first $996 of average monthly earnings is multiplied 

by 90 percent; earnings between $996 and $6,002 

are multiplied by 32 percent; and the balance by 15 

percent. The sum of the three amounts equals the 

PIA, which is then decreased or increased depending 

on whether the worker starts benefits before or after 

full retirement age (FRA). This formula produces the 

monthly payment amount.

When we apply this formula, the percentage of career 

average earnings paid to lower-paid workers is greater 

than higher-paid workers. For example, workers age 

62 in 2021, with average earnings of $3,000 per month 

could receive a benefit at FRA of $1,537 (approximately 

50 percent) of their pre-retirement earnings increased 

by applicable cost of living adjustments (COLAs). For a 

worker with average earnings of $8,000 per month, the 

benefit starting at FRA could be $2,798 (approximately 

35 percent) plus COLAs. However, if either of these 

workers start benefits earlier than their FRA, we’ll 

reduce their monthly benefit.

Why we use a different formula

Before 1983, people whose primary job wasn’t 

covered by Social Security had their Social Security 

benefits calculated as if they were long-term, low-wage 

workers. They had the advantage of receiving a Social 

Security benefit representing a higher percentage of 

their earnings, plus a pension from a job for which 

they didn’t pay Social Security taxes. Congress 

passed the Windfall Elimination Provision to remove 

that advantage.

Under the provision, we reduce the 90 percent factor 

in our formula and phase it in for workers who reached 

age 62 or became disabled between 1986 and 1989. 

For people who reach 62 or became disabled in 1990 

or later, we reduce the 90 percent factor to as little as 

40 percent.

Some exceptions

The Windfall Elimination Provision doesn’t apply if:

• You’re a federal worker first hired after 

December 31, 1983.

• You’re an employee of a non-profit organization 

who was exempt from Social Security coverage 

on December 31,1983, unless the non-profit 

organization waived exemption and did pay Social 

Security taxes, but then the waiver was terminated 

prior to December 31, 1983.

• Your only pension is for railroad employment.

• The only work you performed for which you didn’t 

pay Social Security taxes was before 1957.

• You have 30 or more years of substantial earnings 

under Social Security.

SSA.gov Windfall Elimination Provision
The Windfall Elimination Provision doesn’t apply to 

survivors benefits. We may reduce spouses, widows, 

or widowers benefits because of another law. For 

more information, read Government Pension Offset

(Publication No. 05-10007).

Social Security years of substantial earnings

If you have 30 or more years of substantial earnings, 

we don’t reduce the standard 90 percent factor in our 

formula. See the first table that lists substantial earnings 

for each year.

The second table shows the percentage used to 

reduce the 90 percent factor depending on the number 

of years of substantial earnings. If you have 21 to 29 

years of substantial earnings, we reduce the 90 percent 

factor to between 45 and 85 percent. To see the 

maximum amount we could reduce your benefit, visit 

www.ssa.gov/benefits/retirement/planner/wep.html.

A guarantee

The law protects you if you get a low pension. We 

won’t reduce your Social Security benefit by more than 

half of your pension for earnings after 1956 on which 

you didn’t pay Social Security taxes.

Contacting Social Security

The most convenient way to do business with us from 

anywhere, on any device, is to visit www.ssa.gov. 

There are several things you can do online: apply for 

benefits; get useful information; find publications; and 

get answers to frequently asked questions. 

When you open a personal my Social Security account, 

you have more capabilities. You can review your 

Social Security Statement, verify your earnings, and 

get estimates of future benefits. You can also print a 

benefit verification letter, change your direct deposit 

information, request a replacement Medicare card, 

get a replacement SSA-1099/1042S, and request 

a replacement Social Security card (if you have no 

changes and your state participates).

If you don’t have access to the internet, we offer many 

automated services by telephone, 24 hours a day, 

7 days a week. Call us toll-free at 1-800-772-1213 or at 

our TTY number, 1-800-325-0778, if you’re deaf or hard 

of hearing.

A member of our staff can answer your call from 7 a.m. 

to 7 p.m., Monday through Friday. We ask for your 

patience during busy periods since you may experience 

a high rate of busy signals and longer hold times to 

speak to us. We look forward to serving you.

Year Substantial earnings

1937–1954 $900

1955–1958 $1,050

1959–1965 $1,200

1966–1967 $1,650

1968–1971 $1,950

1972 $2,250

1973 $2,700

1974 $3,300

1975 $3,525

1976 $3,825

1977 $4,125

1978 $4,425

1979 $4,725

1980 $5,100

1981 $5,550

1982 $6,075

1983 $6,675

1984 $7,050

1985 $7,425

1986 $7,875

1987 $8,175

1988 $8,400

Year Substantial earnings

1989 $8,925

1990 $9,525

1991 $9,900

1992 $10,350

1993 $10,725

1994 $11,250

1995 $11,325

1996 $11,625

1997 $12,150

1998 $12,675

1999 $13,425

2000 $14,175

2001 $14,925

2002 $15,750

2003 $16,125

2004 $16,275

2005 $16,725

2006 $17,475

2007 $18,150

2008 $18,975

2009–2011 $19,800

2012 $20,475

Year Substantial earnings

2013 $21,075

2014 $21,750

2015-2016 $22,050

2017 $23,625

2018 $23,850

2019 $24,675

2020 $25,575

2021 $26,550

Years of substantial

earnings Percentage

30 or more 90 percent

29 85 percent

28 80 percent

27 75 percent

26 70 percent

25 65 percent

24 60 percent

23 55 percent

22 50 percent

21 45 percent

20 or less 40 percent

Social Security Administration

Publication No. 05-10045

January 2021 (Recycle prior editions)

Windfall Elimination Provision

Produced and published at U.S. taxpayer expense