TN 15 (01-23)

GN 01701.302 Windfall Elimination Provisions (WEP) Exceptions Based on Years of Coverage for Totalization Benefits Payable for Months Prior to January 1995

A. Introduction to WEP exceptions based on years of coverage (YOC)

For months payable prior to January 1995, we apply WEP exception for YOCs when WEP applies in computing Totalization benefits. For more information on WEP exceptions refer to RS 00605.362.

B. Policy for combining coverage in Totalized benefits

Prior to January 1995, when the number holder (NH) is entitled to U.S. Totalization benefits, we can combine the NH’s coverage from the foreign country in the Totalization agreement with coverage in the U.S. to count YOCs for the YOCs WEP exception.

If the NH receives a pension from more than one foreign country with a Totalization agreement, we only count coverage from one Totalization agreement country for YOCs. Count coverage from the country with the greatest total years of foreign coverage, even if it is not from the country on which we are basing the NH’s Totalization benefits.

NOTE: Entitlement to a disability benefit prior to 1986 may, under certain conditions (see RS 00605.360C.4), except an individual from the application of WEP. Although the agreement with Germany includes provisions that treat U.S. and German periods of disability the same for certain purposes, entitlement to a German disability benefit prior to 1986 will not except an individual from WEP.

C. Procedure for determining YOCs for the WEP exception

Determine total YOCs when deciding if an exception to WEP applies as follows:

1. Determine the total years of U.S. Coverage

Determine total years of U.S. coverage in the same way they are determined for the special minimum PIA (see RS 00605.070B).

2. Determine the total years of foreign coverage

Determine total YOCs from the Totalization agreement country as follows:

  • Convert foreign coverage to quarters of coverage (QCs) following the rules of the Totalization agreement.

  • Delete any foreign QCs which coincide with actual U.S. QCs.

  • Divide remaining foreign QCs by four, dropping any remainder, to determine YOCS based on foreign coverage.

3. Combining U.S. and foreign coverage

Add the total years of U.S. coverage to the total years of foreign coverage and use the combined total to determine whether the YOC exception applies.

NOTE: Do not use YOCs based on attributed earnings as shown in the NH’s theoretical earnings record (see GN 01701.200B.2) in determining whether WEP applies.

D. References


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GN 01701.302 - Windfall Elimination Provisions (WEP) Exceptions Based on Years of Coverage for Totalization Benefits Payable for Months Prior to January 1995 - 01/23/2023
Batch run: 01/23/2023
Rev:01/23/2023