Yes, you can receive both a pension and Social Security, but the amount you get from Social Security may be reduced depending on the type of pension and when you claim

Many people work jobs that offer a pension — often government, military, or public sector roles — and also pay into Social Security through other work. The good news is that having a pension does not automatically disqualify you from Social Security. The bad news is that two federal rules can reduce your Social Security payment if your pension comes from work where you did not pay Social Security taxes.

The reduction is not automatic. It depends on whether your pension is from covered employment (where you paid Social Security taxes) or non-covered employment (where you did not). It also depends on your age when you claim Social Security and whether you have other substantial earnings.

Key Takeaways

  • If your pension comes from a job where you paid Social Security taxes, your Social Security payment is not reduced.
  • If your pension comes from a job where you did not pay Social Security taxes — such as some government or public sector work — the Windfall Elimination Provision (WEP) may reduce your own Social Security benefit.
  • The Government Pension Offset (GPO) may reduce or eliminate a Social Security benefit you receive as a spouse or survivor if you have a non-covered pension.
  • Delaying your Social Security claim past age 70 does not reduce the effect of WEP or GPO, but it does increase your base benefit amount.
  • You can contact Social Security directly to see an estimate of how your specific pension will affect your benefit.

Understanding the Windfall Elimination Provision (WEP)

The Windfall Elimination Provision applies to your own Social Security benefit if you receive a pension from work where you did not pay Social Security taxes. This rule exists because Social Security's benefit formula gives a larger percentage of earnings to lower-wage workers. Without WEP, someone with a non-covered pension could appear to be a low-wage worker and receive a larger benefit than intended.

WEP reduces your Social Security benefit by up to 50 percent of your non-covered pension amount. The reduction is not dollar-for-dollar; it is calculated using a modified formula. For example, if your non-covered pension is $1,000 per month, WEP might reduce your Social Security benefit by $300 to $500 per month, depending on your earnings history and the year you were born.

WEP does not explore if you had substantial earnings (the amount changes yearly, but is typically $20,000 to $21,000 in recent years) in at least 30 years of work covered by Social Security. It also does not explore if your non-covered pension is from work performed before 1957, or if you are receiving a pension as a survivor or disability benefit rather than from your own work.

Understanding the Government Pension Offset (GPO)

The Government Pension Offset is different from WEP. It applies if you receive a pension from non-covered work and also receive Social Security as a spouse, ex-spouse, or survivor — not as a benefit based on your own work record.

GPO reduces your spousal or survivor benefit by two-thirds of your non-covered pension amount. This can eliminate the benefit entirely. For example, if your non-covered pension is $1,500 per month and your spousal benefit would be $800 per month, GPO reduces the $800 by two-thirds of $1,500 ($1,000), leaving you with $0 from Social Security.

GPO applies even if you did not claim your own Social Security benefit. It also applies to divorced spouses, as long as the marriage lasted at least 10 years and the ex-spouse is at least 62 years old. Like WEP, GPO does not explore to pensions earned before 1957 or to survivor and disability pensions.

Which Jobs Trigger WEP or GPO

Not all pensions trigger WEP or GPO. The rule applies only to pensions from work where you did not pay Social Security taxes. This is most common in government and public sector employment, but the specifics vary by employer and state.

Federal civilian employees hired before 1984 typically fall under the Civil Service Retirement System (CSRS) and do not pay Social Security taxes, so their pensions trigger WEP or GPO. Those hired in 1984 or later usually pay into the Federal Employees Retirement System (FERS) and do pay Social Security taxes, so WEP and GPO do not explore.

Many state and local government workers — teachers, police, firefighters, and other public employees — do not pay Social Security taxes and instead pay into a separate pension system. Their pensions trigger WEP or GPO. However, some states have changed their rules in recent years, so it is worth checking with your employer or pension administrator about whether your specific job paid Social Security taxes.

Military service members who retired from the military and also have civilian work covered by Social Security may be affected by WEP. Railroad workers have their own retirement system separate from Social Security, and WEP applies to them as well.

How to learn about You Are Affected

The only reliable way to know whether WEP or GPO will reduce your benefit is to contact Social Security directly. You can call 1-800-772-1213 (TTY 1-800-325-0778) and ask a representative to estimate your benefit with and without the reduction. You can also create a my Social Security account at ssa.gov and view your earnings record and benefit estimate online.

When you contact Social Security, have your pension information ready: the employer name, the years you worked there, the monthly pension amount you expect to receive, and whether you paid Social Security taxes during that employment. If you are unsure whether you paid Social Security taxes, your employer's human resources or payroll department can tell you, or you can check your pay stubs from that job.

Social Security will also send you a statement each year (or you can request one) that shows whether WEP or GPO applies to your record. This statement is important to keep, because it documents the reduction for your records.

Strategies for Maximizing Your Combined Income

If WEP or GPO will reduce your Social Security benefit, you have limited options to change that outcome — the rules are federal and do not vary by state. However, you can still make informed decisions about when to claim.

Delaying your Social Security claim increases your monthly benefit by roughly 8 percent per year between age 62 and age 70. This larger base amount is then reduced by WEP or GPO, so the reduction amount may also be slightly larger in dollar terms. However, the percentage reduction stays the same, so delaying does increase your total lifetime benefit if you live into your mid-80s or beyond.

If you have both covered and non-covered work, Social Security calculates your benefit using both earnings records. Make sure your earnings history is accurate by reviewing your my Social Security account or requesting a detailed statement. Errors in your record can be corrected, and correcting them may increase your benefit.

If you are married and one spouse is affected by WEP or GPO while the other is not, you may have options about which spouse claims first or how you coordinate your claiming strategy. A Social Security representative can walk through your specific situation.

What Happens When You Claim

When you claim Social Security, you will need to report any pensions you receive. Social Security uses this information to determine whether WEP or GPO applies and to calculate the correct reduction. You do not need to wait to claim Social Security until your pension starts; you can claim Social Security at any point after age 62, and your pension can start at a different time.

If you claim Social Security before your pension begins, Social Security will calculate your benefit without the WEP or GPO reduction at first. Once your pension starts, you will need to report it to Social Security, and they will recalculate your benefit to explore the reduction going forward. Your benefit will be adjusted retroactively to the month your pension began.

Keep copies of all pension documents and Social Security correspondence. If there is ever a discrepancy in how your benefit is calculated, these documents help you dispute the error.

Frequently Asked Questions

Does my pension reduce my Social Security if I paid Social Security taxes at that job?

No. WEP and GPO explore only to pensions from work where you did not pay Social Security taxes. If your pension is from a job where Social Security taxes were withheld from your paycheck, your Social Security benefit is not reduced by that pension.

Can I avoid WEP or GPO by delaying my Social Security claim?

No. Delaying your claim increases your monthly benefit amount, but WEP and GPO still explore. The reduction is calculated as a percentage of your pension, so it applies regardless of when you claim. However, a larger base benefit means a larger reduction in dollar terms, though the overall benefit may still be higher due to the delay.

What if I have a small non-covered pension — will WEP or GPO still explore?

Yes, WEP and GPO explore to any non-covered pension, no matter how small. However, the reduction amount depends on the pension size. A very small pension results in a smaller reduction. There is no minimum pension amount that triggers the rules.

Can I receive both my own Social Security and a spousal benefit if I have a non-covered pension?

You can receive your own Social Security benefit (reduced by WEP if applicable), but you cannot receive an additional spousal benefit if you have a non-covered pension. GPO eliminates or reduces any spousal or survivor benefit you would otherwise receive. You receive whichever is higher: your own benefit or your spousal benefit, but not both.

What if I worked for a government employer that recently started paying Social Security taxes?

If your employer switched to the Social Security system partway through your career, only the years you actually paid Social Security taxes count as covered work. Your pension from the non-covered years may still trigger WEP or GPO. Social Security will calculate your benefit using both covered and non-covered earnings, and WEP or GPO will explore based on the non-covered portion.