What is the WEP and the GPO?

Windfall Elimination Provision (WEP)

The Windfall Elimination Provision or WEP applies to a benefit you earned because of private sector employment. A modified benefit formula is used to calculate your Social Security benefit amount if you receive an MPERS pension, resulting in a lower Social Security benefit. Its purpose is to remove an unintended advantage or “windfall” that you might otherwise receive as a result of the interaction between the regular Social Security benefit formula and a relatively short career in Social Security-covered employment.

You can find a Social Security Administration fact sheet on the WEP here. Also, click here to view a history of the WEP and an explanation of how it works from the Congressional Research Service. 

You may be able to avoid the Social Security offset if you meet one of these criteria:

  • You were age 62 or disabled before 1986, or
  • You qualified for an MPERS retirement benefit, including a reduced benefit, by having worked at least 10 years before September 1, 1985 (but had not attained normal retirement age or retired prior to that date), or
  • You have at least 30 years of “substantial” earnings in a job where you paid Social Security taxes. If you have between 21 and 29 years of substantial earnings, you should not be subject to the full reduction.

Government Pension Offset (GPO)

The GPO affects the Social Security benefit paid to you based on earnings of your deceased spouse if you also receive a pension from a government agency, such as MPERS.

Your Social Security benefit may be completely eliminated because you receive a government pension.

You may be able to avoid the Government Pension Offset if you meet one of the following criteria:

  • You were eligible to retire before December 1982, and you meet all of the requirements for Social Security Spouses’ benefits that were in effect in January 1977.
  • You were eligible to retire before July 1, 1983, and were receiving half of your support from your spouse.

Social Security Information

Social Security can give you the location of an office nearest you. MPERS employees cannot help you with Social Security issues.

 

General
Retirees
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