Rule of thumb for WEP Windfall calculation
 

Hi,

I think I remember comment previously that impact of WEP roughly translates to a $1 US social security reduction for every $2 dollars in 'other' pensions and that the reduction maxes out at 50% of US SS amount. Does that sound about right?

Also I assume that it makes no difference whether the pension is being claimed from US or Europe (France)?

thanks
Fionn

Re: Rule of thumb for WEP Windfall calculation
 

This is roughly what I think too, except for maxing out of the reduction: the reduction maxes out at roughly something in the region of $500, and the reduction always maxes out at 50% of the other pension.

Re: Rule of thumb for WEP Windfall calculation
 

As a rough guide the first part of your SS calculation will reduce by 5% for each year you are under the 30 years of qualifying contributions. So 29 years it reduces 5%, 28 years 10% up to 50% for only 20 years contributions. There is a WEP calculator on the SS web site.

Re: Rule of thumb for WEP Windfall calculation
 

it seems you're suggesting that if one's foreign pension is only $100.00 per month and that if one only had 20 years of qualifying contributions, then that person would lose 50% of their SS benefit. Surely that cannot be accurate?

Re: Rule of thumb for WEP Windfall calculation
 

Thanks. Just want to confirm I follow...
The maximum impact on US SS payment is a reduction of approx. $500 per month?
More specifically, the US SS reduction is never greater than 50% of the other pension?

Re: Rule of thumb for WEP Windfall calculation
 

Exactly.