Do i get social security if i have a pension

Points to know

The windfall elimination provision (WEP) may reduce your benefits if you receive a pension from a government entity or another organization that didn't withhold Social Security taxes from your paychecks.
If you worked in a job in which you didn't pay Social Security taxes and later claim on your spouse's or former spouse's earnings record, the government pension offset (GPO) may reduce your spousal benefits.

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Points to know
Did you work for an employer that didn't collect Social Security taxes?
Did you know?
Windfall elimination provision
Government pension offset
Exceptions to the WEP & GPO
30 years of paying Social Security taxes
Federal or railroad employment
Reservists or ministers
A Vanguard advisor can help
You Can Get Both Military Retirement And Social Security Benefits (En español)
Credit For Military Service In 1940 Through 1956
Credit For Military Service After 1956
What We Mean By "Active Duty Military Service"

You're entitled to Social Security retirement benefits if you paid Social Security taxes for 10 years. But not all employers withhold Social Security taxes.

Did you know?

When you check your paycheck deductions, you probably won't see a line for "Social Security taxes."

Instead, you may see a deduction for "OASDI," which is short for "Old Age, Survivors, and Disability Insurance." That's Social Security.

You may also see a separate deduction for Medicare. Social Security and Medicare together make up your FICA (Federal Insurance Contributions Act) deductions.

Some local and state government agencies, public schools, and companies located outside of the United States, for example, may not withhold Social Security taxes and may offer their employees a pension plan instead.

If you work or have worked for an employer that offers a pension plan instead of withholding Social Security taxes (called a noncovered pension), you should be aware of 2 provisions that could reduce Social Security payments.

Windfall elimination provision

If, in the course of your career, you worked for both (1) at least one employer that did withhold Social Security taxes and (2) at least one employer that didn't withhold Social Security taxes and that offers a pension, the windfall elimination provision (WEP) may come into play.

The WEP may apply if you receive both a pension and Social Security benefits. In that case, the WEP can reduce your Social Security payments by up to 50% of your pension amount. This reduction is known as the WEP PIA.

The Social Security Administration (SSA) publishes a chart that shows the maximum amount (in dollars, rather than percentages) that your Social Security benefits would be reduced based on the number of years you paid Social Security taxes.

The rules are complicated, so check with the SSA if you have questions.

Government pension offset

The government pension offset (GPO) is like the WEP, but instead of reducing the worker's benefits, the GPO reduces the benefits for a spouse or former spouse who claims spousal benefits based on a spouse's or former spouse's earnings record.

That is, if you worked in jobs for which no Social Security taxes were withheld and then claim benefits on your spouse's or former spouse's record, you may receive reduced Social Security benefits—or none at all.

The SSA website offers a calculator to help you estimate a spouse's or former spouse's monthly benefits. As with the WEP, the formula for calculating GPO is complicated, so it's best to check with the SSA.

Exceptions to the WEP & GPO

The WEP and GPO may not apply in some cases, meaning that some workers who receive pensions can also receive their full Social Security benefits. The rules are complicated, and we'll provide a few general exceptions here, including how you may be able to avoid the GPO by paying Social Security taxes near the end of your career. Get in touch with the SSA or a financial advisor if you have questions.

The WEP won't reduce your Social Security benefits if you worked for 30 years in jobs in which you paid Social Security taxes.

Federal or railroad employment

The WEP doesn't apply if you were hired by the federal government after December 31, 1983, or if the only pension you receive is the result of working for a railroad.

Reservists or ministers

The WEP doesn't apply to military reservists who receive a reservist pension or to ministers who receive a pension for their ministry.

See how it works: Avoiding the GPO: The 60-month exception for government employees

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If you're struggling with making your best Social Security decision, we can help. You'll also get a custom financial plan, ongoing portfolio management, investment coaching, and real-time goal tracking—all at a low cost.

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Your military pension does not affect your Social Security benefits. You'll get your full Social Security benefit based on your earnings.

Survivors benefits may affect benefits payable under the optional Department of Defense Survivors Benefit Plan. Check with the Department of Defense or your military retirement advisor for more information.

If you have health care protection from the Department of Veterans Affairs (VA), TRICARE (formerly CHAMPUS), or the CHAMPVA program, your health benefits may change or end when you become eligible for Medicare. You should contact the VA, the Department of Defense, or a military health benefits advisor for more information.

Credit For Military Service In 1940 Through 1956

If you were in the military from 1940 through 1956, including attendance at a service academy, you did not pay Social Security taxes. However, your records are credited with special earnings that may help you qualify for Social Security and Medicare or increase the amount of your Social Security benefit.

These special earnings credits are added to your earnings record when you apply for Social Security benefits

How Special Earnings Credits Work

Your Social Security record may be credited with $160 a month in earnings for military service from September 16, 1940, through December 31, 1956, under one of the following conditions:

You were honorably discharged after 90 or more days of service, or you were released because of a disability or injury received in the line of duty.
You are still on active duty.
You are applying for survivors benefits and the veteran died while on active duty.

You cannot receive credit for these special earnings if you are already receiving a federal benefit based on the same years of service. There is one exception: If you were on active duty after 1956, you can still get the special earnings for 1951 through 1956, even if you're receiving a military retirement based on service during that period.

Credit For Military Service After 1956

Since 1957, if you had military service earnings for active duty (including active duty for training), you may have extra Social Security wage credits added to your earnings record. Since 1988, inactive duty service in the Armed Forces reserves (such as weekend drills) is covered by Social Security.

Special extra earnings for periods of active duty from 1957 through 2001 can be credited to your Social Security earnings record.

If you were in the active military service from 1957 through 1967, special extra earnings are added to your earnings record when you apply for Social Security benefits.
If your active duty was after 1967, the extra earnings are already on your record.

There are no special extra earnings credits for military service after 2001.

What We Mean By "Active Duty Military Service"

Active duty military service means that you served on active duty, active duty for training (ACDUTRA), or were in the Reserves for any of the following U.S. military organizations: