Title page
Contents
Summary 2
Introduction 5
Background on the Social Security Benefit Formula 5
How the Windfall Elimination Provision Works 7
Types of Workers Affected by the WEP 8
The Number of People Affected by the WEP 9
Legislative History and Rationale 11
Arguments for the WEP 11
Arguments Against the WEP 12
The WEP's Impact on Low-Income Workers 12
Noncovered Pensions for Beneficiaries Affected by the WEP 12
Legislative Activity on the WEP in the 118th Congress 14
Appendix. WEP-Affected Beneficiaries, by State 17
Author Information 20
Acknowledgments 20
Disclaimer 20
Table 1. Social Security Benefit Formula for Workers Who First Become Eligible in 2024 6
Table 2. Hypothetical Scenario: PIA for a Worker with AIME of $2,500 Who Becomes Eligible in 2024 and Has 20 Years of Substantial Coverage 7
Table 3. Maximum WEP Reduction for Workers Who Become Eligible in 2024, by Years of Substantial Coverage 8
Table 4. Number of Social Security Beneficiaries in Current Payment Status with Benefits Affected by WEP, by State and Type of Beneficiary: December 2023 9
Table 5. Number of Social Security Worker Beneficiaries in Current Payment Status with Benefits Affected by WEP, by Gender and Type of Beneficiary, December 2023 11
Figure 1. Distribution of WEP-Affected Social Security Beneficiaries by Monthly Noncovered Pension Amount and Gender, December 2023 13
Figure 2. Distribution of WEP-Affected Social Security Beneficiaries by Monthly Noncovered Pension Amount and Monthly Social Security Benefits, December 2023 14
Table A-1. Number of Social Security Beneficiaries in Current Payment Status with Benefits Affected by WEP, by State and Type of Beneficiary: December 2022 17
Table A-2. Percentage of Social Security Beneficiaries in Current Payment Status Affected by the WEP, by State and Type of Beneficiary, December 2022 18