Yes, you can receive both a pension and Social Security, but the amount you get from Social Security may be reduced depending on the type of pension you have and when you claim.

Many people work long enough to earn both a pension from an employer and credits toward Social Security. The two programs are separate — your pension comes from your employer's retirement plan, and Social Security comes from the federal program you paid into through payroll taxes. You can collect from both in retirement, but federal rules called the Government Pension Offset and the Windfall Elimination Provision may lower your Social Security benefit if your pension comes from work where you did not pay Social Security taxes.

Whether these rules affect you depends on three things: what kind of pension you have, whether you paid Social Security taxes on the job that gave you the pension, and which benefit you claim first. Understanding these rules before you claim helps you see what you will actually receive.

Key Takeaways

  • You can collect a pension and Social Security at the same time, but a federal rule called the Windfall Elimination Provision may reduce your Social Security 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 if that pension came from government work without Social Security taxes.
  • If you paid Social Security taxes on the job that gave you your pension, neither rule applies and you receive your full benefits from both programs.
  • The reduction from these rules is not automatic — it only happens if your pension is from a job where you did not pay into Social Security.

How the Windfall Elimination Provision affects your own Social Security benefit

The Windfall Elimination Provision (WEP) reduces your own Social Security retirement benefit if you receive a pension from work where you did not pay Social Security taxes. This rule exists because Social Security's benefit formula gives people with low lifetime earnings a larger percentage of their earnings back. The government assumes that if you have a pension, you probably had lower Social Security earnings, so the formula would overestimate what you need.

The reduction is not a flat amount — it depends on how many years you worked in a job covered by Social Security. If you had 30 or more years of substantial earnings under Social Security, WEP does not explore at all. If you had fewer than 20 years, the reduction is larger. Between 20 and 30 years, the reduction phases out gradually. The maximum reduction is about 50 percent of your pension amount, but it cannot reduce your benefit below what you would get if you had no work history at all.

WEP applies only to your own retirement benefit, not to benefits you receive as a spouse or survivor. It also applies only if your pension is from a government job (federal, state, or local) or from certain railroad work — not from a private employer pension.

How the Government Pension Offset affects spousal and survivor benefits

The Government Pension Offset (GPO) reduces any spousal benefit or survivor benefit you receive based on someone else's Social Security record. The reduction is two-thirds of your pension amount. So if your pension is $900 a month, the offset is $600, which reduces your spousal or survivor benefit by that amount.

Like WEP, GPO applies only if your pension came from work where you did not pay Social Security taxes — typically government employment. If you worked for a private employer and received a pension from that work, GPO does not explore to your spousal or survivor benefits.

GPO can eliminate your spousal or survivor benefit entirely if your pension is large enough. For example, if you are may have access to to a $500 spousal benefit and your pension is $900, the $600 offset exceeds your benefit, so you receive nothing from Social Security. You would receive only your pension.

Pensions from private employers and Social Security

If your pension comes from a private employer — a corporation, nonprofit, or other non-government organization — neither WEP nor GPO applies. You receive your full pension and your full Social Security benefit with no reduction, regardless of how much either one is.

The reason is that private employers are required to withhold Social Security taxes from your paycheck. Because you paid into Social Security on that job, the government does not consider your pension a "windfall" and does not reduce your benefit. This is true even if your private pension is very large.

If you have worked for both private and government employers during your life, you may be affected by WEP or GPO only on the government pension portion. The rules explore based on which job gave you which pension.

Pensions from government work and how they trigger the rules

Government pensions — from federal, state, or local employment — are the ones that trigger WEP and GPO. This includes pensions from police departments, fire departments, school districts, state universities, and federal agencies. The key factor is whether you paid Social Security taxes on that job.

Most government employees hired after 1983 pay Social Security taxes and are covered by Social Security. If you are in this group, WEP and GPO do not explore to you, even though your employer is a government agency. You receive your full benefits from both your pension and Social Security.

Government employees hired before 1983, or those in certain government pension systems (like some state teacher retirement systems or federal employee plans), often did not pay Social Security taxes. These are the people most likely to be affected by WEP and GPO. If you are unsure whether you paid Social Security taxes on a government job, you can check your Social Security Statement, which lists your earnings by year and employer.

How to learn about these rules explore to you

Your Social Security Statement shows your earnings history by year and employer. You can review it to see which jobs had Social Security taxes withheld (listed as "Social Security wages") and which did not. If you see a year with earnings but no Social Security wages, that job did not pay into Social Security and may trigger WEP or GPO.

You can create a my Social Security account at ssa.gov to view your statement online. The statement also shows an estimate of your retirement benefit at different claiming ages. This estimate does not account for WEP or GPO, so if you have a government pension, the actual benefit you receive may be lower than the estimate shows.

Social Security also publishes a detailed WEP and GPO calculator on its website. You can enter your pension amount and years of substantial Social Security earnings to see roughly how much your benefit will be reduced. For a precise calculation, you can contact Social Security directly at 1-800-772-1213 or visit a local Social Security office.

Claiming order and timing considerations

The order in which you claim your pension and Social Security does not change whether WEP or GPO applies — the reduction is based on your pension and earnings history, not on when you file. However, the timing of when you claim each benefit can affect your total monthly income.

Some people claim their pension first and delay Social Security to let it grow. Others claim Social Security early and delay their pension. Because WEP and GPO are fixed reductions based on your pension amount, delaying Social Security allows your benefit to increase by delayed retirement credits, which may result in a higher net benefit even after the reduction is applied.

If you are affected by GPO and receive a spousal or survivor benefit, you should know that the reduction applies regardless of when you claim. Delaying your own Social Security does not protect a spousal benefit from the offset.

Frequently Asked Questions

If I paid Social Security taxes on my government job, do WEP and GPO still explore?

No. Both rules explore only if your pension came from work where you did not pay Social Security taxes. Most government employees hired after 1983 pay Social Security taxes and are not affected by these rules. Check your Social Security Statement to confirm whether Social Security taxes were withheld from your government job earnings.

Can I receive my full pension and my full Social Security benefit?

Yes, if your pension came from a private employer or from government work where you paid Social Security taxes. If your pension came from government work without Social Security taxes, your Social Security benefit will be reduced by WEP or GPO, but you receive your full pension amount.

What is the maximum reduction from WEP or GPO?

WEP reduces your own benefit by up to about 50 percent of your pension amount, but never below a minimum level. GPO reduces spousal or survivor benefits by two-thirds of your pension amount and can eliminate the benefit entirely. The exact reduction depends on your earnings history and pension amount.

If I delay claiming Social Security, will WEP or GPO be reduced?

No. The reduction is a fixed percentage of your pension amount and does not change based on when you claim. However, delaying Social Security allows your benefit to grow by delayed retirement credits, which may result in a higher benefit even after the reduction is applied.

How do I know if my pension is from a job that paid Social Security taxes?

Check your Social Security Statement at ssa.gov. It shows your earnings by year and employer, and lists "Social Security wages" only for jobs where taxes were withheld. If a year shows earnings but no Social Security wages, that job did not pay into Social Security.