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Windfall Elimination Provision
The Windfall Elimination Provision (abbreviated WEP〔(POMS RS 00601.002 )〕) is a statutory provision in United States law which affects benefits paid by the Social Security Administration under Title II of the Social Security Act. It reduces the Primary Insurance Amount (PIA) of a person's Retirement Insurance Benefits (RIB) or Disability Insurance Benefits (DIB) when that person is eligible or entitled to a pension based on a job which did not contribute to the Social Security Trust Fund. While in effect, it also affects the benefits of others claiming on the same social security record.〔(POMS RS 00605.360 )〕
== History ==
The Social Security Amendments of 1983 (Public Law 98-21) provided for the WEP as a means of eliminating the "windfall" of social security benefits received by beneficiaries who also receive a pension based on work not covered by Social Security.〔 The windfall in question refers to the subsidization of the PIA for beneficiaries with lower incomes throughout life. Prior to the institution of the WEP, beneficiaries who paid little into social security but were paid well outside of the system were given this subsidy.
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