Guest post by David Fielder.
David Fielder is owner of Postal Benefits Group
Click below to see all of Davids’s Guest Posts.
One of the most common questions we receive in our seminars is from CSRS employees on their Social Security. While there aren’t a lot of CSRS employees who qualified for Social Security there are enough that we felt it necessary to write this article. We have tried to simplify a very complex subject and explain it in a way you can understand.
Windfall Elimination Provision
The Windfall Elimination Provision was passed by the government because they felt CSRS employees were getting Social Security checks that were higher than they should be. We don’t agree with this logic, but this is why the law was passed. In a nutshell, the Windfall Elimination Provision reduces CSRS employees Social Security benefits based on how many years they had “Substantial Earnings” per the Chart below:
| Year | Substantial earnings |
|---|---|
| 1937-54 | $ 900 |
| 1955-58 | $1,050 |
| 1959-65 | $1,200 |
| 1966-67 | $1,650 |
| 1968-71 | $1,950 |
| 1972 | $2,250 |
| 1973 | $2,700 |
| 1974 | $3,300 |
| 1975 | $3,525 |
| 1976 | $3,825 |
| 1977 | $4,125 |
| 1978 | $4,425 |
| 1979 | $4,725 |
| 1980 | $5,100 |
| 1981 | $5,550 |
| 1982 | $6,075 |
| 1983 | $6,675 |
| 1984 | $7,050 |
| 1985 | $7,425 |
| 1986 | $7,875 |
| 1987 | $8,175 |
| 1988 | $8,400 |
| 1989 | $8,925 |
| 1990 | $9,525 |
| 1991 | $9,900 |
| 1992 | $10,350 |
| 1993 | $10,725 |
| 1994 | $11,250 |
| 1995 | $11,325 |
| 1996 | $11,625 |
| 1997 | $12,150 |
| 1998 | $12,675 |
| 1999 | $13,425 |
| 2000 | $14,175 |
| 2001 | $14,925 |
| 2002 | $15,750 |
| 2003 | $16,125 |
| 2004 | $16,275 |
| 2005 | $16,725 |
| 2006 | $17,475 |
| 2007 | $18,150 |
| 2008 | $18,975 |
| 2009 – 2011 | $19,800 |
| 2012 | $20,475 |
If you made at least the amount shown on the chart in a given year that year would be counted. If a CSRS employee worked 10 years from 1972-1982 and paid social security in those years and earned $7,000 in each of those years then the employee would have 10 years of “Substantial Earnings”.
Your Reduction
Now that we know how many years of substantial earnings we can find out how much our Social Security will be reduced by referring to another Social Security Chart. The following chart has years down the left-hand side. This is the year in which you turned 62. Find the year where you turn 62 and then find the years of substantial service and you will see the amount your Social Security is reduced.
Maximum Monthly Amount Your Benefit May Be Reduced Because Of The Windfall Elimination Provision (WEP) ELY = Eligibility Year: The year you reach age 62 or became totally disabled (if earlier).
Using our example and assuming our employee turned 62 in 2011 they would have a reduction of $374.50 (using the 20 or less for years of substantial earnings). The more substantial earnings years you have the less the deduction from your social security.