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The following benefit examples are taken from actual Social Security earnings records and government pension records of persons who worked in government employment that was not covered by Social Security.
These examples compare the amount of Social Security benefits payable (after reduction for the windfall elimination provision and/or the government pension offset) combined with the amount the person’s government pension from work not covered by Social Security to the amount of Social Security benefits that person would have received had all of their earnings been covered by Social Security. The dollar-for-dollar reduction of the dual entitlement provision is also considered in these examples. However, any monies from pensions based on work covered by Social Security is not included in the comparison.
These examples are meant to help illustrate work histories of people who have worked in both covered and non-covered employment during their lifetimes. |
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Worker A—Claims Social Security Benefits at Age 65 and 2 months in 2003 (Full Retirement Age) |
- Currently has 42 years with some Social Security covered earnings
- 38 years of local government employment—not covered by Social Security
- $4,246 monthly pension from government employment
- Not married; no potential spouse’s benefit; no Government Pension Offset reduction
If All Earnings Were Covered by Social Security |
Present Law |
Retired worker benefit:
$1,615 (based on earnings through 2002) |
Retired worker benefit:
$202 (based on earnings through 2002)
--Benefit reflects Windfall Elimination Provision (WEP) adjustment |
Total payable:
$1,615 |
Social Security |
| + $ ? |
Private pension |
$1,615 + ? |
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Total payable:
$ 202 |
Social Security |
+ $4,246 |
Non-covered pension |
$4,448 |
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Worker B—Claims Social Security Benefits at Age 66 in 2009 (Full Retirement Age) |
- Currently has 18 years of Social Security covered earnings
- Paid into Texas Teachers Retirement System for 15 years (not covered by Social Security)
- $1,227 monthly pension from government employment
- Widow
If All Earnings Were Covered by Social Security |
Present Law |
Retired worker benefit:
$973 (assuming present earnings continue until age 66)
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Retired worker benefit:
$156 (assuming no additional Social Security covered earnings)
--Benefit reflects WEP adjustment |
| Potential widow’s benefit:
$1850
--With $1 for $1 reduction of retired worker benefit, benefit payable as a widow $877
-- Calculated as $1,850 minus 100% of $973 = $887 |
Potential widow’s benefit:
$1850
--With $1 for $1 reduction of retired worker benefit and Government
Pension Offset (GPO) reduction1
, benefit payable as a widow $876
-- Calculated as $1,850 minus 100% of $156, then minus 66.67% of pension of $1,227 = $876
1GPO reduction=2/3 of $1227=$818 |
Total payable:
$ 973 |
Soc. Sec. retirement |
$ 877 |
Soc. Sec. widow's |
? |
Private pension |
| $1,850 +? |
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Total payable:
| $ 156 |
Soc. Sec. retirement |
$ 876 |
Soc. Sec. widow's |
| + $1,227 |
Non-covered pension |
$ 2,259 |
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Worker C—Claimed Social Security Benefits
at Age 64 in 2002 |
- Currently has 16 years with Social Security covered earnings
- Paid into Texas Teachers Retirement System for 27 years (not covered by Social Security)
- $2,007 monthly pension from government employment
If All Earnings Were Covered by Social Security |
Present Law |
Retired worker benefit:
$ 1,164 (based on earnings through 2002; reflects reduction for benefit receipt before “full” retirement age)
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Retired worker benefit:
$ 80 (assuming no additional covered earnings; reflects reduction for benefit receipt before “full” retirement age)
--Benefit reflects WEP adjustment |
| Potential spouse's benefit:
$720
--With $1 for $1 reduction of retired worker benefit, benefit payable as spouse = $0
-- Calculated as $720 minus 100% of $1,164 = less than 0 |
Potential spouse's benefit:
$720
--With $1 for $1 reduction of retired worker benefit and GPO reduction, benefit payable as a spouse = $0
-- Calculated as $720 minus 100% of $80, then minus 66.67% of pension of $2,007 = less than 0
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Total payable:
$ 1,164 |
Social Security |
| + $ ? |
Private pension |
$ 1,164 + ? |
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Total payable:
$ 80 |
Soc. Sec. Retirement |
| + $ 2,007
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Non-covered pension |
$ 2,087 |
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For More Information |
Social Security has a number of publications that contain additional information. They include:
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www.socialsecurity.gov
