[20140710]IF00035_社会保障：意外收入消除准备金（WEP）和政府养老金抵消（GPO）.pdf

July 10, 2014 Social Security: The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) Overview The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) are two separate provisions that reduce standard Social Security benefits for people who have pensions from employment that was not covered by Social Security, such as some employment in state, local, and federal government. The Windfall Elimination Provision (WEP) How does the WEP Work? The WEP applies to most people who both receive a pension from uncovered work and receive Social Security benefits based on fewer than 30 years in covered employment. It reduces a workers standard monthly Social Security benefit by up to 55%, with a maximum reduction of $408. The Social Security benefit formula is designed to benefit workers with low average lifetime earnings in Social Security-covered employment. Those workers receive a benefit that is a larger proportion of their earnings than do workers with high average lifetime earnings. The benefit formula does not distinguish, however, between workers who worked for many years at low wages in Social Security-covered employment and those who w