Social Security Questions? Ask a Social Security Expert
Hi from just answer. I'm PDtax, and can assist.
The reduction will apply, because you get a government pension. The size of that pension dues not matter.
The WEP, Windfall Elimination Provision, will reduce your social security payout, which you say is 40%, of the pension payout. A $2,000 starter pension would cost you $800 per month. If that's the case, it might make sense to defer collecting your social security to age 70, since the benefits would grow 8% per year on the whole amount. You could see increases at $90 per month for every year you can wait. You could see an additional $360 per month, even after the WEP.
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