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Social Security Benefits Generally not Affected by
PERSI
We sometimes get questions regarding the Government
Pension Offset (GPO) and the Windfall
Elimination Provision (WEP) that are sometimes used to reduce Social
Security benefits. These are not new. They have been in effect since the
mid-1980s. The WEP generally affects the Social
Security benefits a retiree will
receive if they receive a government pension from work not covered by Social
Security. The GPO affects the
benefits paid to spouses, widows and
widowers of retirees who received a government pension based on work not
covered by Social Security. Are
You Affected?
If
you worked for a government employer who did not withhold Social Security taxes,
the pension you get based on that work may
reduce your Social Security benefits. The WEP primarily affects people who
earned a pension from working for a government
agency and also worked at other jobs where they paid Social Security taxes long
enough to qualify for Social Security retirement or disability benefits. In many states, government employees do not
contribute to Social Security. In some cases, these employees had some
employment where they did pay into Social Security, but because much of their
career was covered by their state pension, their Social Security benefits are
reduced due to the WEP. Here in Idaho, PERSI-eligible employment is covered by Social Security (meaning Social Security taxes are paid on PERSI eligible wages), therefore your PERSI benefit will likely not reduce your Social Security benefit. There are some exceptions to this:
A
good rule of thumb: If you contributed to Social Security throughout your
career, your Social Security benefits will not be reduced by the GPO or WEP. There is federal legislation requiring that new hires not covered by Social Security must receive a form (specified by SSA) telling them they are not covered by Social Security and that GPO and WEP will apply to them. For more information see Windfall Elimination Provision and Government Pension Offset on the Social Security Administration Website. Below is a list of non-federal public employee plans that do not participate in Social Security. A few plans are noted as “Both;” they have some employees who do participate and some who do not. Florida is noteworthy as their teachers do not and the remainder of the plan’s participants do. Alaska state employees and employees of some Alaska political subdivisions do not participate. Federal employees hired after 1983 participate in Social Security.
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