I retired from a law enforcement career last year. Just found out about this WEP thing. I did briefly work in the federal government and numerous part-time jobs and received my 40 quarters to be eligible for SS. Since my law enforcement job did not take out for SS, I will be affected by this WEP. It will cut my SS in half. If I quality and have my 40 quarters because I paid in, why should I be penalized? I could see if I never paid into the system and didn't have my 40 quarters. Seems very unfair!
@hrhtreeoflife4815
24 күн бұрын
Same here. Substitute teacher. Pays strs Other part-time jobs pay into social security. I need to earn 1 more credit to qualify for social security benefits. I have 39 credits of the 40 credits needed. I see it as hopefully getting a little extra, later. But since I DO pay fully into both systems. I believe we should not be punished for working 3 jobs at a time for over 20 years.
@Dukiedukester
10 ай бұрын
WEP and GPO punish people who split their working life between public and private sectors. These penalties are unfair and should be repealed with a full blown SS reform initiative. For me, WEP is the difference between being able or unable to retire before age 70.
@MargaretAylward-zw1zv
4 ай бұрын
Contact your senators and representatives and tell them to bring this to a vote HR82
@diannastavros5086
5 ай бұрын
I'm curious of your thoughts on rolling contributions and interest from a non-covered pension into an annuity before eligibility? This is something I have been contemplating. My non-covered pension is just over 600.00 so I would loose 300.00 from SS and 400.00 from my survivor benefit before collecting my deferred SS. Many financial advisors are not schooled in WEP or GOP. Thanks for your thoughts.
@suedavids
7 ай бұрын
Also, a military pension is exempt from this punishment.
@SandfordSmythe
3 ай бұрын
Military pay into SS.
@tinalippincott9823
Жыл бұрын
While neither WEP or GPO apply to me, I must confess I was not familiar with the terms. Good to know!
@Theretirementnerds
Жыл бұрын
Most don't need to worry about it. But for those that do... it's important to understand.
@josephcalp1604
2 ай бұрын
It's not a penalty. WEP makes sure that the welfare calculation of 90 percent is what is was intended for. Low wage earners who will have 90 percent of their average monthly wage replaced with SSA benefits. Most earners are in the second 45 to 50 percent replacement. As far as GPO, spouses that can recieve benefits from their spouse are offset with the benefits they would receive from their own record, why would't that apply to people who receive pensions that are not covered by Social Security?
@davidfolts5893
Жыл бұрын
Thanks for the excellent explanation of WEP and GPO!
@Theretirementnerds
Жыл бұрын
Thank you David! Most people won't have to worry about it. But for those that do... it is important to be aware of! Appreciate you!
@BRFRGF
8 ай бұрын
Spouse will be eligible for SS but will also be subject to GPO and WEP due to current non-covered (currently pays no OASDI) position. This is in the state of Ohio in which she is enrolled in a state university sponsored "Ohio Alternative Retirement Plan (ARP)" which is a 401(a) employee/employer contributory 100% defined contribution plan (i.e., there is NO defined financial benefit nor any other benefit whatsoever). WEP is not our concern as a spousal benefit for her based on my earnings is significantly higher. So looking at the spousal benefit, I have heard that so long as she DOES NOT TOUCH her 401(a) after employment stops (all contributions stopped) to trigger any withdrawal/payment/transfer, she is eligible for a spousal benefit that is UNREDUCED by GPO until one day into the future when she does "trigger" initiation of a withdrawal/payment/transfer from the 401(a). Is this true? As you can imagine, this greatly affects the calculus of what sources of income to seek upon retirement. E.G., if she is retired (contributions to the ARP have stopped) and reaches age 62 (I'm slightly older), then this would indicate that she is eligible for 100% of a spousal benefit calculated on my PIA for as long as the period of time until she reaches her requirement to start withdrawals at RMD age. In our case this could be up to 13 years of a spousal benefit unaffected by GPO. Of course I understand that other factors go into the calculus of whether this is "smart" (e.g., RMD on a ballooned and tax-deferred ARP could be huge and in a high tax bracket).
@Theretirementnerds
8 ай бұрын
I believe you commented on another video with this question, correct? I couldn't find it again. KZitem makes it hard on my end to search questions, so thank you for posting again. We are under the same understanding as you. It's our understanding that once the non-covered pension is started, that is when the GPO is initiated. Here is an example on the SS website. If you look at section C (Examples), the first example discusses this exact topic. secure.ssa.gov/apps10/poms.nsf/lnx/0202608100DAL We've also seen this in practice. We had a client that was actively working and NOT taking his pension. He was able to receive a spousal benefit while working. This spousal benefit stopped once he retired and began his non covered pension. Hope that helps!
@BRFRGF
8 ай бұрын
@@Theretirementnerds Wow, you are on it! I asked the question via your web site, but don't have a record of it. I also saw the POMS example but have been confused as to why they cite TX specifically and do not generically address the 4 other states that do not participate in SocSec. I'm so glad I found your channel and am now subscribed. You are clear and succinct, yet also very thorough. Rare on KZitem channels where often too many videos are created and they become too diluted. Excellent, excellent resource. Thank you!
@Theretirementnerds
8 ай бұрын
@user-ud5wx1rv5s THAT'S why I couldn't find it! I was so confused and searching KZitem everywhere, haha! Glad we connect. Thank you for your nice comments! Means a lot to see you say those things because they are what we are trying so hard to do. Thank you so much!
@kathysheeran6589
6 ай бұрын
@@Theretirementnerds wow. And thanks so much for covering this for us. I am the one with the government pension. I don’t have enough quarter paid into Social Security from side jobs. My spouse is two years older, and pays into Social Security. His whole life. He may take Social Security this year. Does that mean that as long as I keep working for the government I can apply for a Social Security spousal benefit and get it if I keep working.?? Also, as the younger spouse and the government pension it seems like a better idea for my spouse not to wait till FRA - there will not even be a partial benefit that I would receive if he doesn’t at least start Social Security? Correct (and if he were to pass. And I’m still unclear if both of these penalties apply to me. But I will rewatch this video and possibly send an email. Thanks so much though for addressing this.
@Theretirementnerds
6 ай бұрын
@@kathysheeran6589 feel free to email me. Erik@90daysfromretirement.com
@rjg1173
8 ай бұрын
I collect SS under WEP can I claim on my spouses SS which half is more then my full SS?
@Theretirementnerds
8 ай бұрын
This is where the GPO will kick in. Your spousal benefit will be reduced by 2/3rds of your non-covered pension. Assuming your pension is $1000/mo, then your spousal benefit would be reduced by $666/mo. So it all depends on how much your spousal benefit is and how much your pension is. Hope that helps!
@jimbrauer1711
Жыл бұрын
John Larson = Secure Act 2100 = will repeal both WEP and Government Pension Offset.
@Theretirementnerds
Жыл бұрын
If it gets passed, correct. From what we can see, it has not passed yet, correct? Are you seeing something different?
@123gwilco
11 ай бұрын
When will they repeal these unfair rules. I continue to work because of these rules. It sucks!
@Dukiedukester
10 ай бұрын
The Dems will reform SS if given the chance. Vote blue!
@MargaretAylward-zw1zv
4 ай бұрын
Join the WEP/GPO groups trying to get this repealed. The House and Ways Committee is looking at it now. This month. It needs to be marked up so that the House can vote on it. Contact your representatives and senators and tell them that you want this law repealed. It is your money. HR 82
@123gwilco
4 ай бұрын
@@MargaretAylward-zw1zv I contacted my state representative, Garrett Graves. He is working on it.
@HT_LBC
2 ай бұрын
Thanks for the video! I work for local government agency and I see FICA,Medicare and pension deducted on my paycheck. Does this mean I wont be affected by WEP and GPO ? Thanks again!!
@Theretirementnerds
2 ай бұрын
Correct! Thank you for watching! We have an interview with Zacc Call on this topic coming up 🙂
@masterlee4370
Жыл бұрын
Myself, I will not have to worry about any of this. My first check at age 16 I was like "What the flip" what's all these taxes? They have taken more than their share over the years lol.
@Theretirementnerds
Жыл бұрын
Haha, yes, you can ignore this video for sure! If you have any friends that have worked for the state or a government entity though... they'll want to know :)
@nhactual06
Жыл бұрын
Thank you very much
@Dukiedukester
10 ай бұрын
The 6.2% argument is bogus. Teachers make so much less than others and yet get WEPped! These rules punish teachers and other public employees who worked for a time in the private sector. And that’s not enough for Uncle Sam. He also comes after your widow.
@politerabbit3100
7 ай бұрын
I applied for social security online on Nov. 29, 2023 and have not gotten anywhere. It shows I applied and it was looked at, but nothing else has happened. It's been 7 weeks! I am supposed to sign up for Medicare this month. I am subject to WEP as a retired teacher with a pension in Texas. Due to work before I was a teacher with enough credits I am listed to receive $450. Does this mean I should receive at least $225 if it is guaranteed to not take more than $50%?
@Theretirementnerds
7 ай бұрын
It can take time, unfortunately. If you applied online, that means you have a My Social Security Account. You can apply for Medicare before having SS benefits approved. In regards to your pension/SSA... Yes, the max WEP is no more than 50% of your non-covered pension amount. So, assuming the $450 you mention is your pension amount, then the max WEP penalty would be $225. When you say you are listed to receive $450, is that your pension, or your PIA for Social Security benefits?
@brucesmith9144
7 ай бұрын
That’s concerning. I am getting ready to apply online. Maybe sitting on the phone is better? Like getting a new passport last year, the government is full of delays.
@arleneyoung9999
5 ай бұрын
You're great
@Theretirementnerds
5 ай бұрын
Appreciate you 🙏
@XTRMOverland
4 ай бұрын
anything that will lower your supposed retirement investment is bad, i don't buy any justification that will penalize me for expected return...the problem about this generalized penalty is it's just a way to get away with theft...there is a reason it's called penalty, it's a penalty for good productive people
@suedavids
7 ай бұрын
It’s worse. GPO is based 2/3rds off on the spouses benefit at full retirement age. Any Colas or delayed SS benefit up to 70 are wiped out and not passed on to the widow. Another “Widow trap” that must be planned for.
@MargaretAylward-zw1zv
4 ай бұрын
Contact your representatives and senators and tell them you want this law repealed. I am a widow who will lose all of my husband's benefits. I have joined the Movement to have this law repealed. In the House it is HR82 and must be brought to a mark up which means they vote on it if it is brought forward. It is taking place this month so please join us in this effort.
@JMaV.B
3 ай бұрын
Hi, I am widow. I have a pension in Mexico for my own work. I only worked in U.S. for 3 months. I am 60 years. I would like to apply for widow benefits in my husband's record. Will Social Security reduce the amount on my husband's record for the pension that I have in my country?
@clintcollins81
7 ай бұрын
Great video.
@Theretirementnerds
7 ай бұрын
Thank you!
@JeanPierreWhite
10 ай бұрын
As a family we emigrated to the US in our 30's. Can foreign work trigger WEP? In my wife's case she is not eligible for a UK pension, she worked for just 3 years before we had our first child. Her work history in the US is much longer and she does have enough credits for benefits. I'm hoping there will be no penalty if she is not eligible for a foreign pension. Not sure if working overseas without contributing to SS would trigger WEP anyway. In my case I am at the cusp of being eligible for a reduced UK pension. 10 or more years and you are eligible for a reduced pension in the UK. I might be at 9 years I might be at 10. I'll have to try and find out before I apply. Here;s hoping wee don't get penalized or I might be heading back to work :-(
@markhenderson558
9 ай бұрын
my wife can start drawing early at 64 (20% reduction) less her WEP penalty. I am delaying to 69. When I file she can switch to 1/2 of my benefit (20% reduction) but does the penalty stay WEP or switch to GPO. if it switches to GPO she loses an additional .1666
@Theretirementnerds
9 ай бұрын
WEP is a penalty on her benefit only. Once she switches to spousal, the GPO kicks in and reduces her spousal benefit by 2/3rds of her pension. The WEP no longer applies once she switches to spousal and it goes to GPO.
@markhenderson558
9 ай бұрын
thanks for the info. It is unfortunate that she loses an additional .1666 after switching from her benefit to 1/2 of mine but this is what I needed for retirement planning.
@Theretirementnerds
9 ай бұрын
@@markhenderson558 it is unfortunate. Will switching to your benefit, even with the additional penalty, be higher than her personal benefit with WEP?
@markhenderson558
9 ай бұрын
Yes. It will be around $400 better to switch to spousal benefit. she just loses $136 a month more under GPO
@Theretirementnerds
9 ай бұрын
@@markhenderson558 got it. Yeah, it is nice to see higher paychecks in the working years, but come retirement, that tradeoff can be frustrating.
@teams3345
Жыл бұрын
I love your shirt today!
@Theretirementnerds
Жыл бұрын
Thank you! Primo Golf Apparel is one of our favorite clothing brands :) We know the founder, so always like supporting them!
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