Monday, October 5, 2015

New report: “The Windfall Elimination Provision: It's Time to Correct the Math”

The Windfall Elimination Provision: It's Time to Correct the Math

The Social Security Advisory Board is pleased to announce publication of The Windfall Elimination Provision: It’s Time to Correct the Math. The report recommends that Congress replace the Windfall Elimination Provision (WEP) for new retirees starting in 2017, when earnings data for workers not covered by Social Security will become available. These data will make it possible for SSA to calculate these workers’ benefits proportional to their contributions. The Board’s full report can be found here.

Highlights of the report include:

  • About one quarter of state and local government employees do not contribute to Social Security;
  • The WEP unevenly adjusts benefits for low earners vs. high earners;
  • The WEP is often confusing to those affected;
  • Using newly available earnings data for non-covered employment, SSA has the ability to calculate benefits proportional to contributions.

Replacing the WEP for future retirees would gradually phase out an unpopular and imprecise tool for calculating retirement benefits. The Board urges Congress to implement this fix.

Contact: Anita Kelly (202) 475-7700

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