The Windfall Elimination Provision (WEP) affects the benefits of retired or disabled workers who are also receiving a pension based on work not covered by Social Security. Since dependents' benefits are derived from the worker's benefit, WEP affects dependents' benefits as well.
WEP does not affect benefits paid to survivors of workers who received pensions based on noncovered employment.
A worker and spouse both claim their benefits at full retirement age. Because the worker receives a pension based on work not covered by Social Security, the benefit amount under the WEP benefit formula is $700. Based on the WEP benefit amount, the spouse's benefit is $350 (one-half of the worker's WEP benefit amount).
When the worker dies, the WEP reduction is removed. The surviving spouse's benefit is refigured using the regular benefit formula.