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

Most people can collect a pension from a former employer and Social Security at the same time without losing either benefit entirely. However, if your pension comes from work where you did not pay Social Security taxes — typically government jobs — two federal rules called the Windfall Elimination Provision and the Government Pension Offset may lower your Social Security payment.

The key question is whether your pension is from a job covered by Social Security. If you paid Social Security taxes on that job, you face no reduction. If you did not — which is common for federal employees, some state and local government workers, and railroad employees under their own system — your Social Security benefit will be calculated differently, and you may receive less.

Key Takeaways

  • You can receive both a pension and Social Security unless a federal rule reduces your Social Security payment based on your pension source.
  • The Windfall Elimination Provision reduces your own Social Security benefit if your pension came from work not covered by Social Security.
  • The Government Pension Offset reduces spousal or survivor benefits by two-thirds of your non-covered pension amount.
  • If your pension is from a job where you paid Social Security taxes, neither rule affects your benefits.
  • You can contact the Social Security Administration to learn which rule, if any, applies to your specific situation.

Understanding the Windfall Elimination Provision

The Windfall Elimination Provision (WEP) reduces your own Social Security retirement benefit if you receive a pension from a job where you did not pay Social Security taxes. This rule exists because Social Security's formula gives workers with lower lifetime earnings a larger percentage of their pay back as a benefit — a feature meant to help low-wage workers. The WEP assumes that if you have a non-covered pension, you were not a low-wage worker, and adjusts your benefit downward.

The reduction is not a flat dollar amount — it depends on your age when you first claim Social Security and how many years you worked in jobs covered by Social Security. The maximum reduction is roughly 50 percent of your non-covered pension, but many people see a smaller cut. For example, if your non-covered pension is $1,500 per month, the WEP might reduce your Social Security benefit by $300 to $750 per month, depending on your work history.

You are exempt from the WEP if you had 30 or more years of substantial earnings in jobs covered by Social Security, or if your non-covered pension is very small. The Social Security Administration publishes the exact earnings threshold each year, and it changes annually.

Understanding the Government Pension Offset

The Government Pension Offset (GPO) is a separate rule that affects spousal benefits and survivor benefits, not your own retirement benefit. If you receive a pension from government work not covered by Social Security, the GPO reduces any benefit you would receive as a spouse, ex-spouse, or widow or widower based on someone else's Social Security record.

The GPO reduction is two-thirds of your non-covered pension amount. If your pension is $1,500 per month, the GPO would reduce your spousal or survivor benefit by $1,000 per month. In many cases, this reduction eliminates the spousal or survivor benefit entirely, leaving you with only your pension.

Like the WEP, the GPO has limited exceptions. You may be exempt if you were receiving spousal or survivor benefits before April 2004, or if your government pension is from a job where you were not required to contribute to the pension system.

Which Jobs Trigger These Rules

The rules explore to pensions from jobs where you did not pay Social Security taxes. This most commonly includes federal civilian employees hired before 2014 (who are covered by the Federal Employees Retirement System, or FERS, but under different rules), some state and local government workers, and railroad employees covered by the Railroad Retirement Board instead of Social Security.

Not all government workers are affected. If you worked for a state or local government and your employer did pay Social Security taxes on your salary, you are not subject to the WEP or GPO. Some states and municipalities switched to Social Security coverage decades ago, so workers in those systems are unaffected. The only way to know for certain is to check your Social Security statement or contact the Social Security Administration directly.

How to learn about These Rules explore to You

The Social Security Administration can tell you whether the WEP or GPO will affect your benefits. You can create a free account at ssa.gov and view your Social Security statement online, which shows your estimated benefits and notes if either rule applies. The statement is updated annually and reflects your actual work history.

If you do not have an online account, you can call the Social Security Administration at 1-800-772-1213 (TTY 1-800-325-0778) and ask a representative to review your record. Have your Social Security number and information about your pension ready. You can also visit a local Social Security office in person — find yours at ssa.gov/locator.

If you are close to claiming Social Security, ask the representative to estimate your benefit amount with and without the WEP or GPO applied. This helps you decide when to claim and whether to coordinate your pension and Social Security timing.

Strategies for Managing Both Benefits

If the WEP or GPO will reduce your Social Security, you have limited options to avoid the reduction itself, but you can plan when to claim each benefit. Some people delay claiming Social Security until age 70 to receive a larger monthly payment, which may offset the WEP reduction. Others claim their pension first and Social Security later, or vice versa, depending on which benefit is larger and which will be reduced.

If you are affected by the GPO and were counting on a spousal benefit, your pension alone may be your primary income source. In that case, understanding your pension's cost-of-living adjustments and survivor options becomes more important. Review your pension documents or contact your pension administrator to learn whether your pension increases with inflation and what happens to it if you pass away.

There is no way to eliminate the WEP or GPO once you claim benefits, but you can make an informed decision about the timing and order of your claims. Working with a financial planner or calling Social Security before you claim can help you understand the exact numbers for your situation.

Frequently Asked Questions

Does having a pension disqualify me from Social Security?

No. You can receive both a pension and Social Security. However, if your pension is from work not covered by Social Security, your Social Security benefit may be reduced by the Windfall Elimination Provision or Government Pension Offset. If your pension is from a job where you paid Social Security taxes, you face no reduction.

What is the difference between WEP and GPO?

The WEP reduces your own Social Security retirement benefit based on your non-covered pension. The GPO reduces spousal, ex-spousal, or survivor benefits based on your non-covered pension. They are separate rules that may both explore to you depending on your situation.

Can I work around the Windfall Elimination Provision?

You cannot eliminate the WEP once you claim, but you may reduce its impact by delaying your Social Security claim. A larger benefit at age 70 may offset more of the WEP reduction than claiming at 62 would. You are also exempt if you have 30 or more years of substantial earnings in Social Security-covered work.

Will my spouse be affected by my non-covered pension?

If you have a non-covered pension, your spouse's spousal benefit may be reduced by the Government Pension Offset. However, your spouse's own Social Security retirement benefit (based on their own work record) is not affected by your pension.

How do I know if my government job is covered by Social Security?

Contact your pension administrator or human resources department and ask whether your salary was subject to Social Security tax withholding. You can also check your Social Security statement at ssa.gov or call 1-800-772-1213 to ask the Social Security Administration directly.