Windfall Elimination Provision (WEP)

The Windfall Elimination Provision (WEP) is a rule that reduces Social Security retirement or disability benefits for people who also receive a pension from jobs not covered by Social Security, such as certain government or nonprofit work. Essentially, it adjusts benefits to account for the fact that these individuals might have earned less Social Security through their non-covered employment. The reduction is usually smaller than the regular formula, but it aims to prevent workers from receiving an unexpectedly large combined benefit when combining public pension and Social Security payments.