Does the WEP reduction apply during Suspended status?
I had understood that the WEP reduction doesn't apply during the suspension period, was I mistaken?
I received a letter from SSA stating that they reduced my SSA benefits due to WEP.
I chose to suspend for two reasons:
1. Delay the SSA benefits to increase the amount.
2. Avoid the WEP reduction until I reinstated the SSA benefits.
Hi. Benefit rate reductions caused by the Windfall Elimination Provision (WEP) take effect with the first month that a person is entitled to both a) Social Security retirement or disability benefits, and b) a pension based on their earnings that were exempt from Social Security taxes. Being 'entitled' means that a person has applied for benefits and has been approved.
Once entitlement to benefits has been established, entitlement continues unless you withdraw your application or your benefits are terminated. Even if your Social Security benefits are voluntarily suspended, your entitlement to benefits continues. So, your benefit rate could still be subject to a WEP reduction even if you've voluntarily suspended your benefits.
Best, Jerry