Social Security is a government program that provides one source of retirement income. Benefits are funded by contributions from you and your employer while you are working.
You may be affected by the Windfall Elimination Provision or the Government Pension Offset if you or your spouse
- has opted out of Social Security; or
- has been covered by a government program that replaces Social Security.
The Windfall Elimination Provision modifies the formula used to calculate retirement or disability benefits. As a result, your Social Security benefit may be lower than you would otherwise receive.
The Government Pension Offset affects spouses and widows or widowers who receive a pension from a federal, state, or local government, based on work that was not subject to Social Security taxes.
The Social Security Administration website provides more details about the Windfall Elimination Provision and the Government Pension Offset.