What is the impact of the Windfall Elimination Provision on an individual's benefits?

The Windfall Elimination Provision (WEP) specifically affects how Social Security benefits are calculated for individuals who have earned pensions from employment not covered by Social Security, such as certain state and local government jobs. The main goal of the WEP is to prevent individuals from receiving disproportionately high Social Security benefits based on a career where they also received a non-covered pension.

Under the WEP, the formula used to calculate the amount of an individual's Social Security benefit is adjusted, which typically results in a reduction of the benefit amount. This provision ensures that the benefits received are more proportionate to the individual's contributions to Social Security rather than allowing an individual to benefit excessively from a combination of both a pension and Social Security.

This highlights the significance of option B, as it accurately describes how the WEP functions by reducing benefits for those who have a non-covered pension, instead of permanently eliminating, enhancing, or having no impact at all on the benefits.