What is the primary function of the Windfall Elimination Provision (WEP)?

The Windfall Elimination Provision (WEP) primarily aims to adjust benefits based on pension income, specifically when individuals receive a pension from a job not covered by Social Security. This adjustment is necessary because individuals who have worked in jobs where they did not pay Social Security taxes may receive a pension that could unfairly increase their overall income when combined with Social Security benefits.

The WEP reduces the Social Security benefit amount for individuals who have a significant number of years of substantial earnings in Social Security-covered employment, compared to years of work where they contributed to a non-qualifying pension. This design seeks to reflect the true nature of a worker's contributions to the Social Security system, ensuring that benefits are equitable relative to a person's work history.

The other options misinterpret the purpose of the WEP. For instance, while the WEP does result in lower benefits for those with windfall pensions, it does not specifically aim to protect benefits for low earners or to reduce benefits exclusively for high earners. Its primary focus is not to equalize benefits across different worker groups but rather to make necessary adjustments to prevent a windfall for those who may receive a pension from non-covered employment in addition to Social Security.