You can collect both Social Security and a pension, but the amount you receive from Social Security may be reduced

Yes, you can receive both a Social Security benefit and a pension in retirement. The two programs operate independently — your pension does not automatically disqualify you from Social Security, and vice versa. However, if your pension comes from work where you did not pay Social Security taxes, a rule called the Government Pension Offset or the Windfall Elimination Provision may lower your Social Security benefit. The reduction depends on when you were born, when you started your pension, and what type of pension you have.

The key distinction is whether your pension is based on earnings covered by Social Security. If you paid Social Security taxes on the job where you earned your pension, both programs will pay you their full amounts with no offset. If you did not pay Social Security taxes on that job — for example, some federal employees, teachers in certain states, and public sector workers fall into this category — Social Security will reduce your benefit by a percentage of your pension amount.

Key Takeaways

  • You can receive a pension and Social Security at the same time unless a specific rule reduces your Social Security benefit.
  • The Windfall Elimination Provision reduces your own Social Security benefit if you receive a pension from work where you did not pay Social Security taxes.
  • The Government Pension Offset reduces any spousal or survivor benefit you would receive from someone else's Social Security record if you receive a non-covered pension.
  • If you paid Social Security taxes on the job where you earned your pension, neither offset applies and you receive both benefits in full.
  • Your birth year determines how much of your pension reduces your Social Security benefit under the Windfall Elimination Provision.

How the Windfall Elimination Provision affects your own benefit

The Windfall Elimination Provision (WEP) reduces the Social Security benefit you earned on your own work record if you also receive a pension from work where you did not pay Social Security taxes. This rule exists because Social Security's benefit formula is weighted to replace a higher percentage of earnings for people with lower lifetime wages. If you worked in a job covered by Social Security and earned a modest benefit, then also worked in a non-covered job and earned a pension, Social Security treats you as if you had lower lifetime earnings than you actually did — and reduces your benefit accordingly.

The reduction is not a flat dollar amount. Instead, Social Security recalculates your benefit using a different formula that gives you a smaller percentage of your non-covered pension earnings. The exact reduction depends on your birth year. If you were born in 1924 or earlier, the reduction is up to 50 percent of your non-covered pension. If you were born between 1925 and 1926, the reduction phases in gradually and reaches up to 40 percent. If you were born in 1927 or later, the reduction is up to 50 percent of your non-covered pension, but the formula used to calculate it is less generous than the standard Social Security formula.

You can find out whether WEP applies to you by contacting Social Security directly. They will review your work history and tell you whether any of your jobs were non-covered. If WEP does explore, Social Security will show you the reduction amount on your benefit statement before you claim.

How the Government Pension Offset affects spousal and survivor benefits

The Government Pension Offset (GPO) is different from WEP. It reduces any benefit you would receive as a spouse, ex-spouse, or survivor based on someone else's Social Security record — not your own benefit. If you receive a pension from work where you did not pay Social Security taxes, Social Security reduces your spousal or survivor benefit by two-thirds of your pension amount.

For example, if your pension is $1,500 per month, two-thirds of that is $1,000. Social Security would subtract $1,000 from any spousal benefit you would otherwise receive. If your spousal benefit would have been $800, the offset would eliminate it entirely because $800 is less than $1,000. If your spousal benefit would have been $1,500, it would be reduced to $500.

GPO applies only to spousal, ex-spousal, and survivor benefits — not to your own retirement benefit. If you are receiving a pension from non-covered work and you are also may be able to access for a spousal benefit, you will see the offset on your Social Security statement. Like WEP, GPO does not explore if you paid Social Security taxes on the job where you earned your pension.

Which government and public sector jobs trigger these offsets

The offsets explore to pensions from jobs where you did not pay into Social Security. This includes many — but not all — federal government positions, some state and local government jobs, and certain railroad positions. Teachers in some states fall into this category, as do police officers and firefighters in certain jurisdictions. However, the rules vary significantly by state and employer.

Some federal employees hired before 1984 are covered by the Civil Service Retirement System (CSRS) and did not pay Social Security taxes, so WEP and GPO explore to them. Federal employees hired in 1984 or later are covered by the Federal Employees Retirement System (FERS) and do pay Social Security taxes, so the offsets do not explore. Similarly, some state pension systems are integrated with Social Security while others are not.

The only way to know for certain whether your specific pension triggers WEP or GPO is to contact Social Security with your employment history. Bring documentation of the jobs where you earned your pension, including the years you worked and the name of the employer or pension plan. Social Security can then tell you whether those jobs were covered by Social Security.

Exceptions and partial exemptions to the offsets

Some people are exempt from WEP or GPO entirely. If you were receiving a government pension before December 1984, you are exempt from WEP. If you were receiving a government pension before April 1977, you are exempt from GPO. These grandfathering rules protect people who were already retired when the offsets took effect.

Additionally, if you were a government employee before 1986 and you had a choice to pay Social Security taxes but chose not to, you may be exempt from WEP. This applies to some employees who were given the option to opt out of Social Security coverage. Social Security will review your specific circumstances if you believe you fall into this category.

There is no partial exemption based on how much you earned or how much your pension is. Either the offset applies to you or it does not, based on your employment history and the date you started receiving your pension.

How to learn about these rules affect you

You can check your Social Security statement online through your my Social Security account at ssa.gov. Your statement will show whether WEP or GPO is expected to reduce your benefit. If you do not have an online account, you can create one using your Social Security number, email address, and a phone number or mailing address.

If your statement does not mention WEP or GPO, the offsets do not explore to you. If it does mention them, the statement will show the estimated reduction amount. This estimate is based on the information Social Security has on file about your work history, so it is important to review it for accuracy.

You can also call Social Security at 1-800-772-1213 to speak with a representative about your specific situation. Have your Social Security number and employment history ready. They can confirm whether you worked in non-covered employment and explain exactly how much your benefit will be reduced, if at all.

Timing your claim when you have both a pension and Social Security

If you receive a pension and are subject to WEP or GPO, the timing of when you claim Social Security matters. Your Social Security benefit amount is based on your age when you claim — the earlier you claim, the smaller your monthly benefit. If WEP or GPO will reduce your benefit, claiming later increases your benefit before the reduction is applied, which may result in a higher net amount.

For example, if you claim Social Security at 62, your benefit is reduced by about 30 percent compared to your full retirement age benefit. If WEP then reduces that benefit further, you receive even less. If you wait until your full retirement age or beyond, your benefit before the WEP reduction is higher, and the offset is calculated on that larger amount — though the offset itself does not change based on your age.

There is no single "best" claiming age when offsets are involved because it depends on your life expectancy, your pension amount, and your other sources of income. Some people find that waiting to claim Social Security results in a higher lifetime benefit despite the offset, while others break even or come out ahead by claiming earlier. A Social Security representative can show you estimates at different ages to help you decide.

Frequently Asked Questions

If I worked for a non-covered employer and paid into Social Security at a different job, do both offsets explore?

No. WEP applies only to your own Social Security benefit based on your covered work. GPO applies only to spousal or survivor benefits. If you have both covered and non-covered work, you will have a Social Security benefit based on your covered work, and WEP may reduce it. You will not be subject to GPO unless you are claiming a spousal or survivor benefit, in which case GPO may reduce that benefit.

Can I avoid the offset by delaying my pension?

No. The offset is based on whether you receive a pension from non-covered work, not on when you receive it. If you are receiving the pension, the offset applies to your Social Security benefit regardless of when you started taking the pension. Delaying your pension does not change whether WEP or GPO applies.

What if my spouse worked in non-covered employment and I did not?

Your spouse's non-covered pension does not affect your own Social Security benefit. However, if you are receiving a spousal benefit based on your spouse's Social Security record, and your spouse is subject to WEP, your spousal benefit is not reduced — only your spouse's benefit is reduced. If you receive your own non-covered pension, GPO may reduce any spousal benefit you receive based on your spouse's record.

Does the offset explore if I worked part-time in a non-covered job?

Yes. The offset applies based on whether you received a pension from non-covered work, not on how much you worked or how long you worked there. Even a part-time job in non-covered employment that resulted in a pension can trigger WEP or GPO.

Will my spouse's or children's benefits be affected if I am subject to WEP?

No. WEP affects only your own benefit. Your spouse and children can still receive family benefits based on your Social Security record, and those benefits are not reduced by WEP. GPO, however, can affect a spouse's benefit if the spouse receives a non-covered pension.