Social Security WEP increases - is it percentage-based or calculated differently each year?

The WEP maximum reduction amount actually increases based on the National Average Wage Index, not the COLA percentage that applies to regular benefits. For 2025, the maximum WEP reduction for someone reaching age 62 will be about $642.50 per month if they have less than 20 years of substantial earnings under Social Security. Each year, SSA adjusts this number based on changes in average wages throughout the economy, not inflation (which is what COLA is based on). That's why the increases can seem inconsistent compared to the regular COLA increases you see for benefits.

my uncle got hit with this WEP thing too. he says they just raise it however they want to keep more of your money!! govt always finds a way to take more!!

I've been dealing with WEP for several years now. The maximum WEP reduction does increase annually, but what's important to know is that the WEP reduction is also phased out gradually if you have between 21-30 years of substantial earnings under Social Security. Each additional year of substantial earnings reduces the WEP penalty by 10%. If your husband continues working in SS-covered employment, he might be able to reduce the impact over time. Have you checked how many years of substantial earnings your husband has? This could be more important than the annual increase calculations.

Wait, I thought WEP and GPO were the same thing? My wife has a teacher's pension and they reduce her SS spousal benefits because of it - is that different from what you're talking about?

I spent HOURS on the phone trying to get someone at SSA to explain exactly this last month. Kept getting disconnected or waiting forever. I finally tried using Claimyr (claimyr.com) which got me connected to a real agent in under 20 minutes. The agent explained that the WEP calculation is tied to the bend points in the PIA formula which adjust based on the national average wage index, not the COLA. There's a video explaining their service here if you want to ask specific questions about your situation: https://youtu.be/Z-BRbJw3puU - saved me tons of frustration!

The WEP is a SCAM designed to STEAL money from public servants!!! I worked 30 years for the county and 15 years in private sector and they STILL cut my SS by almost $500 a month!!! UNFAIR!!!

To answer your original question more specifically: The WEP maximum reduction is linked to the first "bend point" in the Social Security benefit formula, which changes every year based on the National Average Wage Index. In 2023, the first bend point was $1,115, and the maximum WEP reduction was $558 (which is 50% of that amount). For 2024, the bend point increased to $1,174, making the maximum WEP reduction $587. The 2025 amount will be announced later this year, but it will be 50% of whatever the first bend point is set at.

my friend said if you work past 70 the WEP goes away completely is that true??

One other important point: while the maximum WEP reduction increases annually with the wage index, your husband's actual WEP reduction might increase at a different rate. This is because the actual reduction depends on his specific Primary Insurance Amount (PIA) calculation. The WEP essentially changes how the first bend point in the formula is applied (reducing it from 90% to as low as 40%), but the full calculation involves all your earnings history. So the actual dollar impact can increase at a different rate than the maximum WEP amount.

The complexity around WEP calculations can definitely be overwhelming! For planning purposes, you might also want to know that SSA typically announces the new bend points (and thus the maximum WEP reduction) in October along with the COLA announcement, but they're published in separate documents. The bend points are usually found in SSA's "National Average Wage Index" announcement. Also, if you're doing multi-year projections, historical wage index growth has averaged around 3-4% annually over the long term, though it can vary significantly year to year based on economic conditions. This might help you create rough estimates for your retirement planning until the official numbers come out.