This is concerning WEP and how and when the WEP amount is calculated considering foreign exchange rates. I am filing at age 70, and have determined that the reduction for WEP will limit at 50% of my foreign pension (instead of being based upon a percentage of the first bend point). My questions are:
1. Is the foreign exchange rate applied to my amount of foreign pension only when first applying for SS benefits, or is it re-calculated monthly or yearly, based upon the then current exchange rate?
2. My foreign pension also has annual inflation adjustments to it - do I restate the amount of foreign pension annually to SSA, and is the benefit amount recalculated?
3. The foreign pension is from Canada - do the US and Canadian authorities exchange information on an annual basis - ie the amount of my foreign pension?
4. Can I request a recalculation if the exchange rate changes dramatically?

Hi,

Assuming that the WEP (Windfall Elimination Provision) guarantee applies in your case, the amount of your WEP reduction would be determined effective with the first month that you are entitled to both your foreign pension and your Social Security retirement benefits (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605370). Entitled to, in this case, means that you have applied for the pension and are eligible to start receiving it. The exchange rate used to calculate the WEP reduction would be based on the exchange rate effective on the first day of that month (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605372).

I don't know what kind of information is exchanged between the U.S. and Canadian programs, but it wouldn't matter unless your Canadian pension ended altogether. Otherwise, the amount of your WEP reduction wouldn't change due to COLA increases or changes in the exchange rate.

Best, Jerry