What is the Windfall Elimination Provision?
The Windfall Elimination Provision (WEP) is a formula in the Social Security Act that reduces the Social Security retirement or disability benefit for workers who:
- Receive a pension from employment not covered by Social Security (such as teaching in a state that opted out of Social Security), AND
- Have fewer than 30 years of 'substantial earnings' in Social Security-covered employment
Approximately 15 states do not have Social Security coverage for public school teachers. In those states — including California, Texas, Ohio, Illinois, Massachusetts, and Colorado — teachers who also worked in Social Security-covered jobs (like a private-sector job or part-time work) will see their Social Security benefit reduced by the WEP.
How WEP reduces your benefit
Social Security normally uses a formula that replaces a higher percentage of lower earners' wages than higher earners' wages. Without WEP, a teacher who worked only briefly in a Social Security-covered job would appear to be a low earner and receive a higher replacement rate — even though they have substantial pension income from teaching.
The WEP adjusts the formula by reducing the replacement rate on the first $1,226 of average indexed monthly earnings (2026) from 90% down to as low as 40%, depending on years of substantial Social Security earnings.
The maximum WEP reduction in 2026 is $587/month. The reduction is eliminated entirely if you have 30+ years of substantial Social Security earnings.
Which states are affected by WEP?
Teachers in the following states do NOT participate in Social Security and are most likely to face WEP if they also have Social Security earnings from other employment:
No Social Security: California, Colorado, Connecticut, Georgia (some districts), Illinois, Kentucky, Louisiana, Maine, Massachusetts, Missouri, Nevada (some districts), Ohio, Rhode Island, Texas
Partial or district-level variation: Some states (like Georgia and Nevada) have districts that participate in Social Security and others that do not.
The other 36 states plus DC cover teachers under Social Security — WEP does not apply to teachers in those states.
How to reduce or avoid WEP
Work 30+ years in Social Security-covered employment: After 30 years of substantial earnings (at least $31,275 in 2026), the WEP reduction is fully eliminated. At 21–29 years, the reduction is gradually phased out.
WEP phase-out schedule: - 30+ years substantial earnings: No WEP reduction - 29 years: 10% reduction in WEP penalty - 28 years: 20% reduction - ... continuing at 10% per year - 20 years: 100% of normal WEP reduction applies
Important: The WEP Social Security Fairness Act (passed January 2025) eliminated WEP retroactively for many retirees. If you already receive Social Security and were subject to WEP, you may be eligible for a payment increase. Check SSA.gov for the latest status.
WEP vs. Government Pension Offset (GPO)
WEP and GPO are often confused but affect different benefits:
- WEP reduces your own Social Security retirement or disability benefit when you also have a non-covered pension - GPO reduces your Social Security spousal or survivor benefit when your own pension comes from non-covered government employment
Both can apply to the same person if they have both a government pension and Social Security benefits based on their own earnings record and their spouse's.
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Frequently Asked Questions
Does WEP apply to all teachers?
No. WEP only applies to teachers in states where public school employment is not covered by Social Security. If you teach in a state where teachers participate in Social Security (most states), WEP does not affect you. WEP also only applies if you have Social Security earnings from other employment — if you've never paid into Social Security, there's no WEP reduction.
How much does WEP reduce my Social Security benefit?
The maximum WEP reduction in 2026 is $587/month. The actual reduction depends on your years of substantial Social Security earnings — the less Social Security-covered work history you have (minimum 20 years for full WEP), the larger the reduction. The reduction is never more than half your non-covered pension amount.
Was WEP repealed?
The Social Security Fairness Act, signed in January 2025, eliminated WEP and GPO for many affected retirees and workers. Retirees who were subject to WEP may see an increase in their benefit and a retroactive lump-sum payment. The SSA is processing these adjustments. If you were previously subject to WEP, check SSA.gov or contact the Social Security Administration for your updated benefit amount.
How do I calculate my WEP reduction?
The SSA's WEP Online Calculator (available at SSA.gov) estimates your WEP reduction based on your earnings record and pension amount. Our teacher pension calculator flags which states are no-Social Security states and helps you factor in WEP when comparing retirement income scenarios.