Yes, you can receive both a pension and Social Security benefits

You can collect both a pension and Social Security at the same time. There is no rule that forces you to choose one or the other. However, the amount of Social Security you receive may be reduced if your pension comes from work where you did not pay Social Security taxes — this is called the Government Pension Offset or the Windfall Elimination Provision, depending on which benefit you are claiming.

The reduction is not automatic. It only applies in specific situations. Understanding which rule affects you — or whether either one does — requires knowing what kind of pension you have and what kind of Social Security benefit you are claiming.

Key Takeaways

  • You can receive a pension and Social Security at the same time, but your Social Security may be reduced if your pension is from a job where you did not pay Social Security taxes.
  • The Windfall Elimination Provision reduces your own Social Security benefit if you have a non-covered pension; the Government Pension Offset reduces a spouse or survivor benefit if you have a non-covered pension.
  • A pension from a job where you paid Social Security taxes does not trigger either reduction, no matter how large the pension is.
  • You need to tell Social Security about your pension when you claim benefits so they can calculate whether a reduction applies.
  • The reduction amount changes each year and depends on your age when you first claim Social Security.

What "non-covered" pension means and why it matters

A non-covered pension is a pension from a job where you did not pay Social Security taxes. This happens most often with government employees — teachers, police officers, firefighters, and some federal workers fall into this category in certain states. Some railroad workers and people who worked for certain religious organizations also have non-covered pensions.

If you paid Social Security taxes on that job, your pension is "covered" and neither the Windfall Elimination Provision nor the Government Pension Offset applies, no matter how large your pension is. The key is whether Social Security taxes came out of your paychecks, not whether you worked for a government agency.

For example: a teacher in Texas who paid Social Security taxes can collect both a full teacher pension and a full Social Security benefit. A teacher in California who did not pay Social Security taxes on that job will have their Social Security reduced by the Windfall Elimination Provision.

How the Windfall Elimination Provision reduces your own benefit

The Windfall Elimination Provision (WEP) reduces the Social Security benefit you earned on your own work record if you also have a non-covered pension. It does not eliminate your benefit entirely — it reduces the amount Social Security calculates.

The reduction is roughly 50% of your non-covered pension amount, but it has a cap. The maximum reduction in 2024 is $895 per month, though this amount changes each year. The actual reduction you face depends on how many years you worked and paid Social Security taxes — people with 30 or more years of covered work get a smaller reduction or none at all.

Social Security calculates your benefit using a formula that assumes you had steady earnings throughout your career. If you have a non-covered pension, that formula is adjusted downward because you likely had lower Social Security earnings in those years. The WEP tries to prevent you from getting a benefit that is larger than what your actual Social Security earnings would support.

How the Government Pension Offset affects spouse and survivor benefits

The Government Pension Offset (GPO) is different from the WEP. It reduces a benefit you claim as a spouse or widow or widower, not a benefit based on your own work record. If you have a non-covered pension and you are also may have access to to a spouse or survivor benefit on someone else's Social Security record, the GPO reduces that spouse or survivor benefit.

The reduction is 2/3 of your non-covered pension amount. For example, if your non-covered pension is $1,500 per month, the GPO reduces your spouse or survivor benefit by about $1,000 per month. In many cases, this reduction eliminates the spouse or survivor benefit entirely.

The GPO applies whether you are claiming a spouse benefit while your spouse is still alive, or a widow or widower benefit after your spouse has died. It does not affect your own Social Security benefit based on your own work record — only the benefit you receive because of someone else's earnings.

When you turn 62 versus when you turn full retirement age

The age at which you claim Social Security affects how much the Windfall Elimination Provision reduces your benefit. If you claim at 62, the reduction is larger than if you wait until your full retirement age. This is because Social Security's reduction formula is steeper for people who claim early.

For example, someone born in 1960 with a non-covered pension might lose $400 per month if they claim at 62, but only $300 per month if they wait until age 67. The exact numbers depend on your birth year, your pension amount, and your years of covered work.

If you have a non-covered pension, waiting to claim Social Security can mean a smaller reduction — but it also means a smaller total benefit amount because you receive fewer months of payments. The math is different for each person, and it is worth running the numbers both ways before you decide when to claim.

How to report your pension to Social Security

When you contact Social Security to claim benefits, you must tell them about any pension you receive. Social Security will ask you what job the pension came from and whether you paid Social Security taxes on that job. Be as specific as you can about the employer and the years you worked there.

Social Security uses this information to determine whether the Windfall Elimination Provision or Government Pension Offset applies. If you do not mention your pension, Social Security may calculate your benefit incorrectly and overpay you — which means you will owe the money back later.

If you are unsure whether your pension is covered or non-covered, contact the agency or employer that pays your pension and ask directly. They can tell you whether Social Security taxes were withheld from your paychecks on that job. Bring that information with you when you contact Social Security.

What happens if you already claimed and did not report your pension

If you claimed Social Security and did not report a non-covered pension, Social Security may discover it later through other records or when you file taxes. When they do, they will recalculate your benefit and send you a notice explaining the reduction that should have been applied.

You will owe back the overpayment — the difference between what you received and what you should have received. Social Security can recover this amount by reducing your future payments. If you disagree with the calculation, you can request a reconsideration or appeal, but you should report the pension as soon as you realize the mistake to limit how much you owe.

Frequently Asked Questions

Does a pension from a private employer reduce my Social Security?

No. The Windfall Elimination Provision and Government Pension Offset only explore to non-covered pensions — pensions from jobs where you did not pay Social Security taxes. If you paid Social Security taxes on the job that gave you the pension, neither reduction applies, regardless of the pension amount.

Can I get both my own Social Security and a spouse benefit?

Not at the same time. You claim one or the other. If you have a non-covered pension, the Government Pension Offset may reduce or eliminate your spouse benefit, but it does not affect your own benefit based on your work record.

What if my pension is very small — does the reduction still explore?

Yes. The Windfall Elimination Provision and Government Pension Offset explore to any non-covered pension, no matter the size. However, the reduction is calculated as a percentage of the pension amount, so a smaller pension results in a smaller reduction.

Can I delay claiming Social Security to avoid the reduction?

Delaying does not eliminate the reduction, but it can make it smaller. The reduction is based on your pension amount and your age when you claim, not on how long you wait. Waiting until your full retirement age or later results in a smaller reduction than claiming at 62, but you will also receive fewer total months of benefits.

Who should I contact if I am not sure whether my pension is covered?

Contact the employer or agency that pays your pension and ask whether Social Security taxes were withheld from your paychecks on that job. You can also contact Social Security directly at 1-800-772-1213 with details about your pension and they can tell you whether a reduction applies.