Social Security retirement calculation after WEP elimination - will they include non-SS job income?

Your Social Security retirement benefit will ONLY be calculated based on earnings where you paid Social Security taxes. The elimination of WEP is great news for you, as it means your benefit won't be reduced like it would have been before, but the SSA still only counts covered earnings (where FICA taxes were withheld) for your benefit calculation. Your public school earnings won't be included in the calculation since you didn't pay SS taxes on that income. The good news is your benefit will now be calculated using the regular formula instead of the reduced WEP formula.

I went thru almost the exact same situation!!!! I worked as a firefighter (no SS withholding) and had a side business where I paid into SS. The SSA rep told me they ONLY count the jobs where I actually paid into the system. Just because WEP is gone doesn't mean they suddenly count ALL your income. You still have to deal with the GPO (Government Pension Offset) too if you're getting a pension from your teaching job and trying to claim spousal benefits later. Did your financial advisor explain that part to you??

The elimination of the Windfall Elimination Provision (WEP) is definitely good news for you, but there's some misunderstanding about how Social Security benefits are calculated. Let me clarify: 1. Your benefit will be based ONLY on earnings where you paid Social Security taxes (your retail job) 2. WEP elimination means your benefit won't be reduced using the modified formula that used to apply to people with non-covered employment 3. Your teaching income won't be included in the calculation because you didn't pay SS taxes on it 4. The Government Pension Offset (GPO) is a separate provision that affects SPOUSAL or SURVIVOR benefits if you receive a pension from non-covered work Since you're applying for your own retirement benefit based on your own work record, GPO doesn't apply to this situation. It would only come into play if you were applying for spousal or survivor benefits on someone else's record.

I had such a hard time getting this exact question answered last year!! Spent HOURS on hold with Social Security and kept getting disconnected. Finally I found this service called Claimyr (claimyr.com) that got me connected to an actual SSA rep in under 10 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. The rep confirmed exactly what others are saying here - they only count the jobs where SS taxes were withheld, but at least the WEP reduction is gone now. Worth the time to talk to SSA directly about your specific situation!

wait, i'm confused about something... if WEP is gone, doesn't that mean they SHOULD count both incomes now? that's what i thought the whole point was. otherwise what actually changed???

MY HUSBAND HAD THE SAME SITUATION!!! He was a county employee (no SS taxes) and ran a side business (paid SS taxes). When he applied for benefits last year, they ONLY counted his business income for SS benefits. The rep explained that removing WEP just means they calculate the benefit normally instead of reducing it with a different formula. It's still based only on your taxed earnings. But your benefit will be higher than it would have been before the change. My husband got about $470 more per month than the initial estimate because of the WEP repeal.

Just to address your follow-up question about the Government Pension Offset (GPO): The GPO only affects spousal or survivor benefits, not your own retirement benefits. So your teacher's pension won't affect your Social Security retirement benefit based on your own work record. It would only matter if you were also trying to collect spousal benefits on your husband or wife's record. The GPO would reduce those spousal benefits by 2/3 of your teacher pension amount. But again, this doesn't apply to your own retirement benefits that you earned through your retail job.

You're understanding the situation correctly now. To summarize where things stand for you: 1. Your SS retirement benefit will be calculated using only your retail job earnings where you paid SS taxes 2. The benefit will now use the regular formula (no WEP reduction) 3. For spousal benefits: If 2/3 of your teacher pension ($3,200 × 2/3 = $2,133) exceeds 50% of your husband's benefit ($950 × 0.5 = $475), then yes, the GPO would eliminate any spousal benefits When you apply in March 2025, I recommend bringing documentation of both your covered and non-covered work to your appointment, as some SSA representatives are still getting familiar with how to properly implement the WEP elimination correctly.

There's no specific form to request regarding WEP elimination. The change in law should be automatically applied to your benefit calculation. However, it's always good to specifically mention to the representative that you understand the Windfall Elimination Provision has been eliminated and you want to make sure your benefit is calculated using the standard formula. If you create a my Social Security account at ssa.gov, you can check your earnings record to ensure all your covered employment (the retail job) is properly recorded before your appointment. This can prevent delays in processing your application.