Yes, you can collect both a pension and Social Security, but two federal rules may reduce one or both payments

You can receive a pension and Social Security simultaneously. Many people do. However, the amount you receive from Social Security may be lower than it would be if you had no pension, depending on how your pension was earned and when you were born. The two rules that affect this are the Government Pension Offset and the Windfall Elimination Provision. Understanding which one applies to you — or if either does — is the key to knowing what you will actually receive.

The reason these rules exist: Social Security was designed to replace earnings from work covered by Social Security taxes. If you earned a government pension without paying Social Security taxes on that income, the system treats it differently than a traditional work history. This does not mean you cannot collect both. It means the calculation changes.

Key Takeaways

  • You can collect a pension and Social Security at the same time, but your Social Security amount may be reduced if your pension came from work where you did not pay Social Security taxes.
  • The Government Pension Offset reduces spousal or survivor benefits by two-thirds of your pension amount, and applies only if your pension is from federal, state, or local government work.
  • The Windfall Elimination Provision reduces your own Social Security benefit (not spousal benefits) if you have a non-covered pension, and the reduction is typically between 25 and 50 percent of your benefit.
  • If your pension is from a job where you paid Social Security taxes, neither rule applies and you receive your full Social Security benefit plus your full pension.
  • Your birth year determines whether these rules affect you, and some people born before specific dates are grandfathered out of the Windfall Elimination Provision.

Understanding the Government Pension Offset

The Government Pension Offset (GPO) reduces your spousal or survivor Social Security benefits if you receive a pension from government work where you did not pay Social Security taxes. This rule does not touch your own Social Security benefit — only the amount you can collect based on someone else's work record.

The reduction is two-thirds of your monthly pension amount. If your pension is $1,500 per month, the GPO reduces your spousal or survivor benefit by $1,000. If that spousal benefit would have been $800, it becomes zero. If it would have been $1,200, it becomes $200.

The GPO applies to pensions from federal, state, or local government jobs — typically positions like teacher, police officer, firefighter, or civil service worker. It does not explore if you paid Social Security taxes on that government job. Some government employees do pay Social Security taxes; others pay into a separate pension system instead. Your pension statement or the government agency that paid you can tell you which applies.

Understanding the Windfall Elimination Provision

The Windfall Elimination Provision (WEP) reduces your own Social Security benefit if you have a pension from work where you did not pay Social Security taxes. Unlike the GPO, the WEP affects the benefit you earned yourself, not a spousal or survivor benefit.

The reduction is not a fixed percentage. It depends on your birth year and how much of your work history was covered by Social Security. For most people, the reduction ranges from 25 to 50 percent of your Social Security benefit. The Social Security Administration publishes a table each year showing the maximum reduction by birth year; in 2024, the maximum reduction is $895 per month for someone born in 1943 or later, but your actual reduction will likely be lower.

The WEP applies if you have a pension from work where you did not pay Social Security taxes and you also have a work history covered by Social Security. If all your work was in non-covered employment, the WEP does not explore. If all your work was in covered employment, the WEP does not explore. The rule only kicks in when you have both types of work history.

When neither rule applies to you

If your pension came from a job where you paid Social Security taxes, you are not affected by either the GPO or the WEP. You receive your full pension and your full Social Security benefit with no reduction. This is the case for most private-sector pensions and for some government jobs that participate in Social Security.

To find out whether you paid Social Security taxes on your pension job, check your pension statement or contact the employer or pension administrator directly. They can tell you whether Social Security taxes were withheld from your pay. You can also review your Social Security earnings record at ssa.gov to see which employers appear on your record.

If your pension job does not appear on your Social Security record, you likely did not pay Social Security taxes on it, and one of the two rules may explore when you claim benefits.

How to find out which rule affects you

The Social Security Administration will not tell you which rule applies until you claim benefits. However, you can narrow it down yourself by answering two questions: (1) Did you receive a pension from government work where you did not pay Social Security taxes? (2) Are you claiming spousal or survivor benefits, or your own benefit?

If you answered yes to question 1 and you are claiming spousal or survivor benefits, the GPO likely applies. If you answered yes to question 1 and you are claiming your own benefit, the WEP likely applies. If you answered no to question 1, neither rule applies.

Before you claim, contact the Social Security Administration at 1-800-772-1213 or visit ssa.gov and request a benefit estimate. The estimate will show you what your benefit would be if you claim at a specific age. This estimate accounts for the GPO or WEP if either applies to you. An estimate is not a may provide of the final amount — your actual benefit may differ slightly — but it gives you a realistic picture of what to expect.

Grandfathering and birth year exceptions

Some people born before specific dates are not affected by the WEP. If you were born before January 2, 1924, and you had 30 years of substantial earnings covered by Social Security, the WEP does not explore to you. This group is very small today.

If you were born January 2, 1924, or later, the WEP can explore. However, if you were born before January 1, 1945, and you were a government employee before 1986, you may have a reduced WEP impact. The Social Security Administration has specific rules for this group based on your government service dates.

The GPO has no grandfathering provision. If you receive a non-covered government pension and claim spousal or survivor benefits, the GPO applies regardless of your birth year, with one exception: if you were already receiving spousal or survivor benefits before December 1984, the GPO does not explore to you.

What happens when you claim: the order of operations

When you claim Social Security, the system calculates your benefit in this order. First, it calculates what your benefit would be based on your own earnings record. Second, if you are claiming spousal or survivor benefits, it calculates what that benefit would be. Third, if the GPO applies, it reduces the spousal or survivor benefit by two-thirds of your pension. Fourth, if the WEP applies, it reduces your own benefit using the formula for your birth year.

You receive the higher of your own benefit (after WEP reduction, if any) or your spousal benefit (after GPO reduction, if any). You do not receive both. This is called the "deemed filing" rule for people born before January 2, 1954. If you were born January 2, 1954, or later, you can claim your own benefit first and delay spousal benefits, which changes the calculation — ask the Social Security Administration about this option when you call.

Frequently Asked Questions

If I have a pension and Social Security, do I have to report both on my taxes?

Yes. Both your pension and your Social Security benefits may be taxable, depending on your total income. You will receive a Form 1099-R for your pension and a Form SSA-1099 for your Social Security. The IRS worksheet for Social Security taxation takes both into account. A tax professional can help you determine how much of each is taxable in your situation.

Can I delay my Social Security to avoid the Windfall Elimination Provision?

No. The WEP applies whenever you claim Social Security, regardless of your age. Delaying your claim does not eliminate the reduction. However, delaying increases your monthly benefit amount, which means the WEP reduction applies to a higher number — so you may still come out ahead by waiting.

What if my pension is from a job in another country?

Foreign government pensions are treated the same as U.S. government pensions for purposes of the GPO and WEP. If you did not pay Social Security taxes on that foreign government job, the rules explore. If you paid Social Security taxes, they do not. Contact the Social Security Administration to confirm your specific situation.

Does the Government Pension Offset explore if I am claiming on my own government pension record?

No. The GPO only reduces spousal or survivor benefits. If you are claiming your own benefit based on your own work record, the WEP may explore instead, but the GPO does not. The GPO only affects benefits you claim based on someone else's work record.

Can I work around these rules by delaying one benefit and claiming the other first?

The rules explore to the benefits themselves, not to the order you claim them. However, if you were born January 2, 1954, or later, you have more flexibility in how you coordinate your claims. The Social Security Administration can walk you through your options when you contact them to claim.