Ask Larry

Can You Suggest A Financial Planner Who Can Assist Me With A WEP Appeal?

Hoping someone can suggest a financial planner regarding a WEP situation.
There seems to be an exception for Australia pension receivers mentioned here:
https://secure.ssa.gov/apps10/poms.nsf/lnx/0200307290
Looking for a planner who can verify that, and assist in an appeal as payment was reduced recently.
This seems to be a sort of a "dusty corner" in the WEP legalese, so seeking a pro.

Hi. I don't know of anyone who specializes in your specific issue. Here's what I can tell you. Foreign pensions count for Windfall Elimination Provision (WEP) purposes if the foreign pension is based on a person's work and earnings. Pensions don't count for WEP purposes if they are based solely on non-work requirements (e.g. residence).

If your Australian pension is based only on factors such as residence requirements or means testing, then it shouldn't cause your U.S. Social Security benefit to be reduced. However, if your Australian pension is based at least in part on your work and earnings in that country, then it would count for WEP purposes. In that case, reducing your U.S. Social Security retirement benefit rate is probably correct unless you meet one of the other exceptions to WEP (https://www.ssa.gov/pubs/EN-05-10045.pdf).

If you believe that your pension should not cause your benefit rate to be reduced you can file an appeal. What you need to prove to Social Security is that your pension is based solely on non-work factors.

Best, Jerry

Posted: 
Jul 14 2022 - 11:58am
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