The WEP guarantee says the reduction to my Social Security benefit cannot be more than 50% of my non-covered pension. My non-covered pension is the Canadian Pension Plan. Is that guarantee applied to the CPP converted to US dollars? For example, I worked less than 20 years in the US, but more than 20 years in Canada. Let's say my CPP is $800 (Canadian) which with the exchange rate is $584 (US). So is the WEP guarantee based on 50% of the $800 (Canadian) or $584 (US)? I cannot find anywhere in the SS documents that specifies whether I should convert my CPP to US dollars or not. Hoping you can shed some light on this issue.

Hi,

Yes, the Windfall Elimination Provision (WEP) guarantee is calculated based on U.S. Dollars. If a person receives a foreign pension, the countable amount of the pension for purposes of WEP is based on the value of the pension in U.S. dollars. The conversion from foreign currency to U.S. dollars is based on the exchange rate as of the first day of the first month of the person's entitlement to both the foreign pension and U.S. Social Security benefits (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605372).

By the way, our software (https://maximizemysocialsecurity.com/purchase) is fully programmed to handle calculations involving WEP and the WEP guarantee provision, so you may want to strongly consider using the software to determine the best strategy for claiming your benefits.

Best, Jerry