TY - JOUR T1 - The Social Security Windfall Elimination and Government Pension Offset Provisions for Public Employees in the Health and Retirement Study JF - Social Security Bulletin Y1 - 2014 A1 - Alan L Gustman A1 - Thomas L. Steinmeier A1 - N. Tabatabai KW - Employment and Labor Force KW - Income KW - Pensions KW - Public Policy KW - Retirement Planning and Satisfaction KW - Social Security AB - This article uses Health and Retirement Study data to investigate the effects of Social Security's Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) on Social Security benefits received by households. The provisions reduce benefits for individuals or the dependents of individuals whose work histories include jobs for which they were entitled to a pension and were not subject to Social Security payroll taxes ( noncovered employment). We find that about 3.5 percent of households are subject to either the WEP or the GPO, and that the provisions reduce the present value of their Social Security benefits by roughly one-fifth. Households affected by both provisions experience benefit reductions of about one-third. Under the WEP, the Social Security benefit reduction is capped at one-half of the amount of the pension from noncovered employment, which substantially reduces the WEP penalty and prevents the WEP adjustment from falling disproportionately on households in the lowest earnings category. PB - 74 VL - 74 IS - 3 N1 - Date revised - 2015-04-01 Availability - URL:http://www.ssa.gov/policy/docs/ssb/ Publisher's URL U4 - Retirement Policies/Wage Level and Structure/Wage Differentials/Public Sector Labor Markets/labor Force Participation/Earnings/Pensions/Public Employee/Social Security/Windfall Elimination Provision/Government Pension Offset ER -