Will my state pension reduce my Social Security even with 30+ years of SS contributions?
Getting nervous as retirement approaches next year. I've worked for our state highway department for the past 15 years, but before that I put in 32 years at various private companies where I paid into Social Security. I've heard horror stories about something called the Windfall Elimination Provision that can slash your Social Security check if you get a government pension. But I thought there was some kind of protection if you had 30+ years of "substantial earnings" under Social Security? My financial advisor mentioned something about this but wasn't sure how it works. Will my state pension actually reduce my Social Security benefit even though I have well over 30 years of SS contributions? I'm trying to finalize my retirement budget and this uncertainty is making it impossible to plan!
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LilMama23
Yes, you're dealing with the Windfall Elimination Provision (WEP), but you've got good news coming. With 30+ years of substantial earnings under Social Security, you should be completely exempt from WEP reductions! The WEP normally reduces Social Security benefits for people who receive pensions from jobs where they didn't pay SS taxes (like many state government positions). But the SSA built in protections for people like you who have a long history of contributing to Social Security before or alongside their government work. SSA defines "substantial earnings" with specific dollar amounts for each year. For example, in 2024, it's $31,575. These thresholds are lower for earlier years. If you've truly got 32 years that meet these thresholds, your Social Security benefit should be calculated normally without any WEP reduction.
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Aisha Patel
•Thank you so much for this clear explanation! Do you know where I can verify my years of "substantial earnings"? Is that something I can see on my Social Security statement or do I need to contact SSA directly?
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Dmitri Volkov
My brother went thru this EXACT thing last yr!!! He worked for county water dept for 22 yrs but had like 33 yrs private sector before that. His SS check isnt reduced at ALL bcuz of the 30 yr rule. Your good!!!
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Gabrielle Dubois
•Not always true. Depends if earnings were high enough each year. SSA has specific annual thresholds for what counts as "substantial earnings" - a year only counts toward the 30 if you earned over that amount.
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Tyrone Johnson
There's actually two separate provisions you need to understand: WEP (Windfall Elimination Provision) and GPO (Government Pension Offset). They're different. WEP affects your own Social Security benefits and as others mentioned, having 30+ years of substantial earnings means WEP won't apply to you - your SS won't be reduced. But GPO is different - it affects any spousal or survivor benefits you might be eligible for from someone else's record. GPO can reduce those benefits by 2/3 of your government pension amount regardless of how many years you paid into Social Security. So if you're planning to claim any spousal benefits, that's where you might still see a reduction. Many people confuse these two provisions.
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Ingrid Larsson
•So confusing... so if the OP is married and their spouse passes away, would survivor benefits be reduced by GPO even with 30+ years? The SSA website makes my head spin, it's like they purposely make this stuff impossible to understand!
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Carlos Mendoza
I was in a similar position and tried calling Social Security about WEP for WEEKS. Could never get through - always disconnected or on hold forever. Finally used a service called Claimyr (claimyr.com) that got me connected to an actual SSA agent in about 20 minutes instead of waiting for hours. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent confirmed I was exempt from WEP with my 31 years of substantial earnings. They also generated a special statement showing my calculation without the WEP reduction. I recommend getting that document in writing before you retire so you have proof in case there's confusion later.
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Aisha Patel
•Thanks for the tip! I've been trying to reach SSA for weeks too with no luck. I'll check out that service - getting written confirmation of my WEP exemption would give me great peace of mind.
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Zainab Mahmoud
dont trust anyone here get it in WRITING from SSA!!! my cousin thought he was good with 30 yrs too but turns out some of those years didnt count as enough earnings!!! ended up with $438 less every month than he expected. big shock when the first check came!!!
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LilMama23
•This is excellent advice. The SSA's definition of "substantial earnings" changes each year. For example, earnings of $5,100 in 1980 would count, but you needed $21,750 in 2010 to qualify for that year. You should definitely verify your specific situation with SSA directly.
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Gabrielle Dubois
You need to figure out exactly how many years of "substantial earnings" you actually have under Social Security's specific definition. The threshold amount changes every year. Here are some examples of what counted as substantial earnings: 1980: $5,100 1990: $9,525 2000: $14,175 2010: $19,800 2020: $25,575 2025: $32,850 (estimated) So even though you worked 32 years in the private sector, if some of those years were part-time or low-income, they might not all count toward your 30 years needed for full WEP exemption. Get your earnings record from SSA and compare each year against the substantial earnings chart on SSA's website. You might have partial WEP reduction if you have 21-29 years of substantial earnings.
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Aisha Patel
•Those thresholds are actually lower than I expected. I worked full-time with decent pay for most of those 32 years, so I'm hopeful most will qualify. I'll definitely get my earnings record and do that comparison. Thanks for the specific numbers!
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Ingrid Larsson
This whole WEP thing is SO UNFAIR!!! Why should anyone get penalized just because they worked part of their career in public service?? I don't understand why Congress hasn't fixed this yet. The whole system is rigged against government workers. Sorry - I know this doesn't answer your question, but it makes me so mad every time I see someone dealing with this ridiculous provision.
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Tyrone Johnson
•The rationale behind WEP is actually to prevent what SSA considers a "windfall." Social Security benefits are weighted to give lower-income workers a higher percentage return on their contributions. When someone gets a non-covered pension, they appear to SSA as a lower earner (since those years show zero SS earnings), so without WEP, they'd get the advantage of the weighted formula despite not actually being low-income. That said, many argue WEP is implemented too harshly and reform is needed.
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Dmitri Volkov
OP you might want to check if your state has that thing called Social Security totalization or something? My friend in Ohio said her state retirement system lets employees pay into both systems at same time to avoid WEP completely. Might be too late for you now but worth checking!
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LilMama23
•I think you're referring to Section 218 Agreements, which allow state and local government employers to voluntarily participate in Social Security. However, this is an employer decision, not something individual employees can opt into. Once a state agency has a Section 218 Agreement, employees pay into both systems and avoid WEP entirely because they're not receiving "non-covered" pension income. The OP would need to check if their state highway department has such an agreement.
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Aisha Patel
I want to thank everyone for their incredibly helpful responses! I've learned so much about WEP and now understand I need to confirm exactly how many years of "substantial earnings" I have according to SSA's specific thresholds. I'm going to try contacting SSA to get my full earnings record and request written confirmation about my WEP status. It sounds like with my 32 years in the private sector, I'm likely exempt from WEP reductions as long as my earnings met the thresholds for at least 30 of those years. I'll also look into whether my state highway department might have a Section 218 Agreement, though I'm pretty sure we don't pay into Social Security there. Thanks again for clarifying this confusing topic - I feel much better prepared to finalize my retirement plans now!
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