Paper from the SSA proposing changes to the way the WEP is calculated. It may be of interest to anyone who's receiving or expecting to receive a SS pension that may be subject to the WEP reduction (perhaps triggered by receipt of a UK pension or other non-US pension).
When Congress established the WEP formula as part of the Social Security Amendments of 1983, the Social Security Administration (SSA) lacked data on earnings in jobs not covered by Social Security that are necessary to make an exact benefit adjustment. Beginning in 2017, SSA will have 35 years of earnings data so that it can accurately calculate benefits for people who have worked both in employment covered by Social Security and in employment not covered by Social Security. Workers in covered employment contribute to Social Security through their payroll taxes, while workers in non-covered employment do not. The Social Security Advisory Board recommends that beginning in 2017, Congress change the current formula to one that uses actual earnings data in applying WEP. SSA should communicate this change to affected individuals, both in an outreach campaign and on its mySSA website.
http://ssab.gov/Portals/0/Reports/WEP_Position_Paper_2015.pdf?ver=2015-10-02-104201-183A bill reflecting these proposals has been introduced.
Library of Congress Summary
The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.
2/4/2015--Introduced.
Equal Treatment of Public Servants Act of 2015 Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act to replace the current windfall elimination provision (WEP) (that reduces the Social Security benefits of workers who also have pension benefits from employment not covered by Social Security) for individuals who:
(1) become eligible for old-age insurance benefits after 2016 or would attain age 62 after 2016 and become eligible for disability insurance benefits after 2016,
(2) subsequently become entitled to such benefits, and
(3) have earnings derived from noncovered service performed after 1977.
Establishes a new formula for the treatment of noncovered earnings in determining Social Security benefits.
Prescribes a second formula to modify the WEP for current beneficiaries.
Directs the Commissioner of Social Security to recover overpayments from certain individuals.
(
https://www.congress.gov/113/bills/hr5697/BILLS-113hr5697ih.pdf).
Sadly, but perhaps unsurprisingly, govtrack.us gives it a 1% chance of becoming law. (
https://www.govtrack.us/congress/bills/114/hr711)
But who knows, now the data is there, the formula might well be changed eventually.
