Effective Dates: 10/19/2022 - Present Previous | Next

TN 17 (04-25)

GN 01701.320 Types of Pensions in Totalization Agreement Countries Not Subject to the Windfall Elimination Provision (WEP)

A. Policy on the types of Totalization agreement countries and applicability of WEP

Some agreement countries pay pensions that are based entirely on non-work-related factors such as residence or citizenship. Other Totalization agreement countries pay pensions based entirely on work or on a combination of work and non-work factors (e.g., citizenship and voluntary contributions).

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    Foreign pensions that are based on work or a combination of work and non-work factors may be subject to WEP. However, when a foreign pension is based on a combination of work and non-work factors, only the portion of the foreign pension attributable to work is considered for purposes of applying the WEP Guarantee Provision. For information on the WEP Guarantee see RS 00605.370.

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    Foreign pensions that are based entirely on non-work-related criteria are not subject to WEP.

REMINDER: 

The Social Security Fairness Act of 2023 (SSFA) repealed the WEP for benefits payable for January 2024 and later. Therefore, beginning with benefits due for January 2024 (paid in February 2024), SSA no longer reduces or offsets Social Security benefits for individuals receiving any pension (domestic or foreign) based on non-covered earnings (i.e., employment that is not subject to Social Security payroll taxes).

B. Chart of pensions from Totalization agreement countries not subject to WEP

The following chart shows the types of pensions paid by Totalization agreement countries that are not subject to WEP because they are based entirely on non-work-related factors (for example, residence-or citizenship-based pensions). If a pension paid by a Totalization agreement country is not listed below, determine whether WEP applies. For more information on foreign pensions see GN 00307.290.

COUNTRY TYPE OF BENEFIT
Australia Social Security
Canada Old-Age Security (OAS)
Denmark Folkepension (FP)
Finland National Pension Scheme (NPS)
Japan Japan's National Pension
Netherlands National Insurance Scheme (AOW)
Norway Basic Pension Program
Sweden Basic Pension Program

 

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0201701320
GN 01701.320 - Types of Pensions in Totalization Agreement Countries Not Subject to the Windfall Elimination Provision (WEP) - 10/19/2022
Batch run: 06/12/2025
Rev:10/19/2022