Case Scenario 1
The NH receives a Totalization retirement benefit for months prior to January 1995
based on combined U.S. and German coverage. In addition, the NH receives a Social
Security benefit from Germany and a private pension from a former German employer.
The NH’s Totalization benefits are not subject to WEP because the NH’s pension under
the German Totalization agreement is considered U.S. covered work.
Case Scenario 2
The NH receives a Social Security benefit from Germany, a private pension from a former
German employer, and a pension from Chile.
The pension from Chile would trigger WEP, thus affecting the NH’s Totalization benefits.
The U.S. Chile Totalization agreement did not become effective until December 1, 2001.
(See GN 01701.005 for a list of Totalization agreement countries and the agreement effective dates.)
Therefore, for Totalization benefits payable prior to January 1995, the pension from
Chile is considered a pension based on non-covered employment and is subject to WEP.
Beginning January 1995, WEP no longer applies to the Totalization benefit (see GN
01701.300) because the NH is not insured based on U.S. coverage alone.