Re: tricky WEP question
 

Hi,

I'm finding the whole WEP thing very confusing. Presumably when one applies for the SS benefit that is when all the details need to be provided, and the calculator is just there to give you an estimate.
But in my situation I am likely to be applying for the SS benefit before I have all the details available for my other pension income. I only have about 22 years of SS contributions so will be definitely impacted by WEP.
I have two UK private pensions that are currently paying out so that bit is straightforward. I have a small third one which I was planning to leave invested, so not actually having any income at the time of applying for the SS benefit.
Also I don't plan on applying for my UK OAP until after applying for the SS benefit, so that is another pension income that I won't have a number for.

Also, is this just a one time thing - i.e. when you apply for the SS benefit, or do you have to keep changing it as/when you start bringing in the other pension income streams?

Thanks

Re: tricky WEP question
 

You may well find out that your 2 UK pensions hit the max WEP so the OAP will have no effect. Otherwise you will need to report your OAP when it starts. I played with the calculator, put all my data in including my existing 2 UK pensions and then adding an OAP estimate made no difference at all to the reduction.

Re: tricky WEP question
 

Thanks for that. I guess I'll have to try the calculator and see what happens.

Also it sounds from what you said that submitting the information for the WEP isn't just a one off thing, but they are going to want know when my circumstances change as well.
I guess I had thought that applying for the SS benefit was a single event and once it was set up it just kept going. Which I suppose it might have been if it hadn't been for the WEP.

Re: tricky WEP question
 

It is a single event if you meet that max WEP threshold and the amount of reduction never changes once applied. I’m expecting a reduction of about $400/mo and no matter how many extra pensions might start that $400 figure never changes.

Although my wife started her SS before she started her OAP it was also a single event because she applied through the US embassy in London. The agent said on the phone that the UK DWP would give them the figures once she started drawing OAP and is exactly what happened. No WEP for about 9 months until she started receiving her OAP.

Re: tricky WEP question
 

Appreciate the help. I think I understand it a lot better now. Thanks

Re: tricky WEP question
 

My time has come to start thinking about WEP
I have 35 years of UK OAP , 16 years of which was paid while paying SSI
I have a small UK company pension that I can take from age 50 no SSI $2k-$4k/year
At age 62 I will have paid maximum of 24 years SSI , I want to stop work at 60 or earlier so lets say 22 years SSI
My spouse does not have full SSI so will rely on spousal benefit(50%)
I also have defined contribution pension in the UK

My thoughts are to start collecting a reduced UK company pension of about $2k/year as soon as I can. as it will be subject to WEP.
My wife's 50% will based the SS that I get after WEP. so say I get $4k before, we will get another $2k, total 6k. If I take 3k after WEP she will get 1.5k , total 4.5k. My full UK pension is only 1100, so I would be better off not taking it and taking the extra spousal benefit.
My appointment as the SS office is beginning of May, so I have some time to think of more questions, just curious if others had similar experience.
Who ever thought retiring would be so complex

Re: tricky WEP question
 

Your spouse will only get 50% of your benefits if she applies at full retirement age. You may know that but it’s not clear from your post.

https://www.investopedia.com/ask/ans...l-security.asp



I have also believe that WEP will apply even if you don’t actually collect OAP. The fact that you can take it is what counts and WEP will apply from the day you are eligible to receive OAP. I recall that is what the FBU agent at the London Embassy told my wife when she applied for SS a couple of years ago, and in fact she received her full SS for the period up to her 66th birthday then WEP reduced it. When she applied, the telephone interview agent said that they would be contacting the UK DWP to confirm how much she would be eligible for and how many years were excluded due to voluntary contributions so she didn’t even have to to file form 309 to declare her OAP to the SSA.

Re: tricky WEP question
 

Have you checked gpo and its effect on spousal benefit?

HOW THE GPO WORKS: The GPO reduces the spousal or widow(er) benefit by two-thirds of the monthly non-covered pension and can partially, or fully, offset an individual's spousal/widow(er)benefit, depending on the amount of the non-covered pension.

Re: tricky WEP question
 

This can also definitely be an issue, but only applies to spouses of those who worked for the US government and have a pension with them.

https://www.ssa.gov/pubs/EN-05-10007.pdf

Re: tricky WEP question
 

I believe the maximum amount of WEP currently stands at $587/mth (based on 20 years SSI) so on this basis, if your SS was $4k it would be reduced to $3400 ish (not $3k) (likely more if you have over 20 years). If this is correct then taking the additional pension would not make any difference?