What does the Windfall Elimination Provision (WEP) affect?

The Windfall Elimination Provision (WEP) specifically impacts the benefit amount of individuals who receive a pension from non-covered employment, meaning jobs where Social Security taxes were not paid. When someone is eligible for both a pension from such positions and Social Security benefits based on their work history that included paying into Social Security, WEP reduces the Social Security benefits they would otherwise receive.

This adjustment is designed to prevent what is termed "windfall" gains, where individuals who have not paid into the Social Security system for a number of years could receive a relatively high benefit based on the formula that typically favors low earners. The WEP modifies how the benefit is calculated to more accurately reflect the individual's overall earnings and contributions to Social Security.

In contrast, the other options focus on areas that are not directly impacted by WEP. For instance, it does not alter eligibility for Social Security benefits, nor does it affect Supplemental Security Income (SSI), which is a program based on need rather than work history. Additionally, WEP does not change the benefit amounts of a spouse based on the individual’s pension situation—it solely affects the primary worker's Social Security benefit calculation.