The Windfall Elimination Provision (abbreviated WEP[1]) was a statutory provision in United States law[2] which affects benefits paid by the Social Security Administration under Title II of the Social Security Act.
[3] The windfall in question refers to the subsidization of the PIA for beneficiaries with lower incomes throughout life.
The following steps were taken in determining the WEP PIA with the Modified New Start 1978 Method:[4] (See Primary Insurance Amount for clarification) 1.
The following chart shows the percentages applied before the first bend-point based on the first year the beneficiary was eligible for both:[3] When calculating based on YOCs acquired, the following chart shows what percentage to apply before the first bend-point:[5] The following steps were taken in determining the WEP PIA with the Modified Old Start 1977 Method:[4] (See Primary Insurance Amount for clarification) 1.
The Special Minimum PIA, intended to assist individuals with low earnings over their working life, has been in effect on all benefits payable since January 1973.
In 2024, HR 82, the Social Security Fairness Act—repealing the WEP—passed both houses of Congress, and was signed by President Joe Biden on January 5, 2025.
[11] According to the Congressional Research Service, approximately 2.1 million people were affected by the WEP as of December 2023.
The law called for retroactive benefits to be paid back to January 2024 for individuals affected by the WEP.
[12] Opponents of this bill, such as the Committee for a Responsible Federal Budget, stated that this would hasten the point where Social Security payouts exceed taxes by six months.
[13] Others state that repealing the WEP would reintroduce the ability of a windfall to be generated by higher-paid long-time public sector workers who work for a short time in a Social Security-covered position, thus increasing regressivity.