What is the role of the Windfall Elimination Provision for those with pensions?

The Windfall Elimination Provision (WEP) is designed to adjust the Social Security benefits for individuals who receive a pension from work not covered by Social Security, such as certain government jobs. The purpose of the WEP is to account for the fact that these individuals may not have paid into the Social Security system for the same duration or amount as someone whose entire work history involved covered employment.

The WEP modifies the formula used to calculate Social Security benefits, essentially reducing the benefit amount for those affected. This is important because it ensures a fairer distribution of benefits by recognizing that individuals who have a pension from non-covered employment may not rely solely on Social Security for retirement income. Therefore, those subject to the WEP will see a decrease in their Social Security benefit as a result of the provision, which is why this answer is correct.

Understanding the WEP is crucial for individuals with pensions from non-Social Security covered employment, as it helps in planning for their retirement income and anticipating how their benefits might be affected.