Will my company pension reduce my Social Security benefits at 62? WEP concerns

The Windfall Elimination Provision (WEP) only applies if you earned a pension from a job where you DIDN'T pay Social Security taxes. If you paid SS taxes at your company job while earning that pension, then WEP doesn't apply and your benefits won't be reduced. Did you pay Social Security taxes at your pension job?

If you paid Social Security taxes on the earnings that gave you the pension, then the WEP won't apply to you. WEP only affects people who worked in jobs not covered by Social Security (like certain government jobs, foreign employment, or jobs covered by alternative retirement systems). The key question: were Social Security taxes (FICA) withheld from your paychecks at the company where you earned the pension?

My husband went through something similar last year. We thought his pension would reduce his SS but it turned out he was thinking of the Government Pension Offset which is different from WEP. GPO affects SPOUSAL benefits not your own. Your not even claiming spousal benefits so dont worry about GPO either.

One thing to consider - since you're only 62, you're taking Social Security early before your Full Retirement Age (FRA). This means your benefit is permanently reduced (probably by about 30% from what you'd get at your FRA). Also, are you COMPLETELY retired? If you earn over $22,320 in 2025 from work, you'll lose $1 in benefits for every $2 you earn above that limit until you reach your Full Retirement Age. This earnings test doesn't count pension income though - only wages or self-employment income.

I went through exactly this same situation and spent WEEKS trying to get someone at SSA on the phone to answer this question!!! It was impossible. I finally found a service called Claimyr that got me through to an actual person at Social Security in less than 10 minutes. I was shocked it worked! I showed my husband the video at https://youtu.be/Z-BRbJw3puU and he couldn't believe it either. Much easier than waiting on hold for hours. The agent confirmed that since I paid SS taxes at my pension job, WEP doesn't apply to me.

FYI - the fact that you paid into SS for 18 years from other jobs would also help even if WEP did apply. WEP reduction is less severe the more years you have 'substantial earnings' under Social Security (30+ years of substantial earnings means no WEP reduction at all). But since you paid SS taxes at your pension job too, you're totally fine!

just wanted to say congrats on retireing!!!! good planning with both SS and a pension thats a solid income for retirement better than lots of people get

One more consideration: Since you'll have significant retirement income (around $4,600/month combined), keep in mind that up to 85% of your Social Security benefits may be taxable depending on your overall income. You may want to set aside some money for taxes if you aren't already planning for this. For 2025, if your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds $34,000 filing single or $44,000 filing jointly, up to 85% of benefits become taxable.

my uncle had his ss cut because of his state job pension! he was a teacher and didnt pay ss taxes so thats why. sounds like your fine if you paid ss taxes. govmnt rules are so confusing!!!!!

Since your case seems clear (no WEP because you paid Social Security taxes while earning your pension), the only other thing to check is if any portion of your 28 years at the company might have been exempt from Social Security taxes. Some companies switched plans during certain time periods. Might be worth checking your W-2s from those earliest years just to be 100% certain. But it sounds like you're fine!