Yes, you can receive both a pension and Social Security, but your pension may reduce your Social Security payment

Most people who worked long enough can draw both a pension and Social Security. However, two federal rules — the Government Pension Offset and the Windfall Elimination Provision — can lower your Social Security benefit if your pension comes from work where you did not pay Social Security taxes. These rules apply only to specific situations, and many people with pensions are not affected by them at all.

The key is understanding which rule applies to you, if any. Your pension type, when you were hired, and what kind of Social Security benefit you are claiming all matter. If you worked in both the public sector (where you got a pension) and private industry (where you paid Social Security taxes), the rules work differently than if you only worked one type of job.

Key Takeaways

  • You can receive both a pension and Social Security unless a federal rule reduces one or both payments.
  • The Windfall Elimination Provision lowers your own Social Security benefit if you have a non-covered pension; the Government Pension Offset lowers your spousal or survivor benefit instead.
  • These rules apply only to pensions from jobs where you did not pay Social Security taxes, such as some government, teacher, or railroad positions.
  • If you worked in both covered and non-covered jobs, Social Security can calculate your benefit using a special formula that may protect part of your payment.
  • You must contact Social Security directly to learn which rule applies to your specific situation, because the rules depend on your exact work history.

The Windfall Elimination Provision: How it affects your own benefit

The Windfall Elimination Provision (WEP) reduces your own Social Security retirement or disability benefit if you receive a pension from work where you did not pay Social Security taxes. This typically means government jobs, some teacher positions, or railroad work hired before 1984.

The reduction is not a flat amount — it depends on how much your non-covered pension is and when you were born. For someone born in 1943 or later, the maximum reduction is about 50 percent of your pension amount, but the reduction cannot take your Social Security benefit below a floor amount that Social Security calculates. If your pension is small, the WEP reduction may be small too. If your pension is large, the reduction could be substantial.

WEP does not apply if you had substantial earnings in Social Security-covered work. Social Security defines "substantial" based on your birth year, but generally it means you earned enough in covered work over enough years. If you worked 30 years in jobs where you paid Social Security taxes, you are usually exempt from WEP entirely.

The Government Pension Offset: How it affects spousal and survivor benefits

The Government Pension Offset (GPO) is different from WEP. It reduces your spousal benefit or survivor benefit (the benefit you receive based on your spouse's or ex-spouse's work record) if you receive a pension from non-covered work. GPO reduces your spousal or survivor benefit by two-thirds of your pension amount.

For example, if your government pension is $1,500 per month, GPO would reduce your spousal benefit by $1,000 (two-thirds of $1,500). If your spousal benefit would have been $800, GPO would eliminate it entirely because $800 is less than $1,000. You would receive only your own Social Security retirement benefit, not the spousal addition.

GPO applies to spouses, ex-spouses married at least 10 years, and surviving spouses or ex-spouses. It does not apply to your own retirement or disability benefit — only to benefits you receive based on someone else's record.

When these rules do not apply to you

You are not affected by WEP or GPO if your pension comes from work where you paid Social Security taxes. This includes most private-sector jobs, some government positions, and some teacher positions in states that participate in Social Security.

You are also not affected if you were hired before a certain date. For example, some government employees hired before 1986 are exempt from both rules. Railroad workers have their own separate system and are generally not subject to WEP or GPO. If you worked for a railroad, contact the Railroad Retirement Board directly rather than Social Security.

If you have a pension from covered work and also worked in non-covered work, Social Security may use a special calculation called the Modified Benefit Formula that protects part of your benefit. This formula is complex and depends on your exact earnings history, so you must discuss it with Social Security to know whether it applies to you.

How to find out which rule applies to your situation

Social Security cannot tell you whether WEP or GPO applies until you actually file for benefits. At that point, they will calculate your benefit and show you the reduction, if any. However, you can call Social Security before you file to ask whether your pension is likely to trigger either rule.

When you call, have your pension documents ready. Social Security needs to know the employer, the job title, the dates you worked, and whether you paid Social Security taxes on that job. If you are unsure whether you paid Social Security taxes, your pension statement or employer records can clarify this.

You can reach Social Security at 1-800-772-1213 (TTY 1-800-325-0778). You can also visit your local Social Security office in person or create an account at ssa.gov to view your earnings record and see what Social Security has on file about your work history.

What happens if you file before you know about these rules

If you file for Social Security and then discover that WEP or GPO applies, you cannot undo the reduction retroactively. However, you have options. You can request that Social Security recalculate your benefit if your work history changes or if you believe they made an error in determining whether the rule applies.

If you have not yet filed, waiting until you have confirmed whether WEP or GPO applies can help you make an informed decision about when to claim. Filing at 62 versus 67 makes a much larger difference in your lifetime benefit if WEP or GPO will reduce your payment.

If you believe Social Security applied WEP or GPO incorrectly, you can file a written request asking them to review the decision. Include documentation of your work history, pension statements, and any other evidence. Social Security will respond in writing with an explanation.

Pensions from other countries and special situations

If you receive a pension from work outside the United States, different rules may apply. Some countries have agreements with the United States that affect how Social Security and foreign pensions interact. If you worked abroad, contact Social Security to discuss your specific situation.

If you are a federal employee, you may be covered by the Federal Employees Retirement System (FERS) or the older Civil Service Retirement System (CSRS). FERS employees pay Social Security taxes and are not subject to WEP or GPO. CSRS employees do not pay Social Security taxes and are subject to both rules. Your federal employee benefits statement will show which system covers you.

Frequently Asked Questions

Can I get both my pension and my full Social Security benefit?

You can receive both, but if your pension is from non-covered work, WEP or GPO will reduce your Social Security benefit. The amount of the reduction depends on your pension size and work history. If your pension is from covered work, no reduction applies.

Does my spouse's pension affect my Social Security?

Your spouse's pension does not directly affect your own Social Security retirement benefit. However, if your spouse receives a pension from non-covered work, GPO may reduce any spousal benefit they receive based on your work record.

What if I worked 30 years in covered jobs and 10 years in a government job?

If you have 30 years of substantial earnings in Social Security-covered work, you are usually exempt from WEP. Your government pension will not reduce your own Social Security benefit. However, GPO may still apply to any spousal or survivor benefit you receive.

Can I appeal if Social Security says WEP or GPO applies to me?

Yes. You can request that Social Security reconsider their decision if you believe they made an error about your work history or pension status. Submit a written request with documentation. If you disagree with the reconsideration, you can request a hearing before an administrative law judge.

When should I file if I know WEP or GPO will reduce my benefit?

The reduction applies whether you file at 62 or 70, so the timing decision depends on your life expectancy and financial needs. Filing later increases your monthly benefit, but the WEP or GPO reduction will still apply. Discuss the numbers with Social Security before you decide.