I have earned a Social Security benefit from 25 years active duty in the Air Force. I have also earned a California State Teacher's Retirement benefit (non-SS covered). Normally my SS would be reduced by the Windfall Elimination Provision, but I am covered by the exception "You’re a federal worker first hired after December 31, 1983" (by just a couple of months, whew!) However, I am planning to go back to work for a couple of years in a non-government SS-covered job -- will that cancel my WEP exception? This is truly a $50,000 question!

Hi. Unfortunately, it doesn't sound like the exception to which you refer will exempt you from the Windfall Elimination Provision (WEP). The exception that you mention applies only to FEDERAL pensions received by federal workers hired after 1983, and the reason that those pensions are exempt from WEP is because the wages of federal civil service employees became subject to Social Security taxes starting January 1 1984. As a result, their federal pensions don't cause a WEP reduction because they paid Social Security taxes on the earnings on which their federal pensions are based.

Your non-covered teacher's pension from California will still cause your Social Security retirement benefit rate to be reduced due to WEP unless you meet one of the other WEP exceptions. It sounds like the only exception that might apply to you is the 30 years of 'substantial' Social Security covered earnings exception. If you have at least 30 years of Social Security covered earnings that meet the definition of being substantial for WEP purposes, you would then be exempt from any WEP reduction. The annual amounts defined as 'substantial' can be found on page 2 of the following Social Security publication (https://www.ssa.gov/pubs/EN-05-10045.pdf).

The good news is that returning to work at a job where you'll be paying Social Security taxes could only help your Social Security retirement benefit rate, not hurt it. Even if you end up with less than 30 years of substantial earnings that were subject to Social Security taxes, the amount of any WEP reduction would be mitigated for each year of substantial earnings that you have from 21 to 30 years. Plus, additional years of Social Security covered earnings will raise your benefit rate if your yearly earnings are among your highest 35 years of Social Security covered earnings.

Our software (https://maximizemysocialsecurity.com/purchase) is programmed to handle benefit calculations involving WEP, so you should strongly consider using the software to fully compare and analyze all of your options so that you can determine your best strategy for maximizing your benefits.

Best, Jerry