Investment Dictionary

Windfall Elimination Provision (WEP)

The Windfall Elimination Provision affects the amount of your retirement or disability benefit paid to you if you receive a pension from a pension plan of most federal, state or local governments, including TRS. A modified formula is used to calculate your benefit amount, and may result in a lower Social Security benefit than you otherwise would receive. This provision only effects those that qualify for Social Security based on their own earnings.

« Back