Hi Larry,
My Wife and I are not due to retire for 111-15 years. We work and live in the US but will also be eligible for Canada Pension (CPP) and Old Age Security (OAS). We will both be entitled to S.S.I. also having 40 credits in the US. I understand SSI will be decreased by a one third to two thirds ( which % is correct)of our Canadian contribution. How does the 30 year substantial earnings work from both countries

Hi,

I don't know much about the Canadian CPP & OAS programs as my only area of expertise is U.S. Social Security. If you have 40 quarters of coverage in the U.S., then you'll be eligible for U.S. Social Security retirement benefits when you meet the age requirement (https://www.ssa.gov/OP_Home%2Fhandbook/handbook.03/handbook-0301.html). However, if you're also receiving a CPP pension your U.S. retirement rate may be computed using a less generous computation formula than the normal formula due to the Windfall Elimination Provision (WEP).

WEP does not reduce benefit rates by a set percentage. Instead, when WEP is applicable an alternate benefit calculation formula is used. For details about the alternate formula and exceptions to WEP, refer to the following Social Security publication: https://www.ssa.gov/pubs/EN-05-10045.pdf. Our maximization software is programmed to calculate benefit rates using the alternate WEP formula.

You would be exempt from WEP if you have at least 30 years of 'substantial earnings' in the U.S. as defined in the WEP publication noted above. In that case your retirement benefit rate would be computed using the normal computation formula.

Best, Jerry