THE SOCIAL SECURITY WINDFALL ELIMINATION PROVISION: ISSUES AND REPLACEMENT ALTERNATIVES.

SOCIAL Security (United States); PENSIONS; RETIREMENT benefits; RETIREMENT income; SOCIAL security beneficiaries; SOCIAL security laws

Congress established the Windfall Elimination Provision (WEP) in 1983 to improve the fairness of Social Security by reducing benefits for individuals who would otherwise receive a full benefit based on earnings in Social Security--covered employment as well as pension income from noncovered employment. Since then, critics have asserted that the WEP overcorrects the would-be windfall for affected beneficiaries and is difficult to administer effectively; in response, some members of Congress have called for modifying or repealing the WEP. This article considers two WEP replacement options that would modify the benefit calculation methodology. It compares the current WEP with the two options and discusses some of the possible effects of changing the current law. [ABSTRACT FROM AUTHOR]

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