Rule of thumb for WEP Windfall calculation
#1
Just Joined
Thread Starter
Joined: Mar 2017
Posts: 15
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
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
#2
Forum Regular
Joined: Jul 2018
Location: California
Posts: 254
Re: 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
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
#3
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.
#4
Forum Regular
Joined: May 2018
Location: North Yorkshire
Posts: 80
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.
#5
Just Joined
Thread Starter
Joined: Mar 2017
Posts: 15
Re: Rule of thumb for WEP Windfall calculation
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?