Under the WEP, we compute or recompute the primary insurance amount (PIA) of number holders (NHs) who receive a foreign or domestic pension based on earnings from non-covered employment (i.e., employment that is not subject to Social Security payroll taxes). For general information on the WEP, refer to RS 00605.360.

A foreign pension is any periodic or lump-sum payment made by a private employer, government employer, Social Security program, or government of a foreign country.

The Social Security Fairness Act of 2023 (SSFA) repealed the WEP for benefits payable for January 2024 and later. Therefore, this section provides guidance on foreign pensions and the WEP for benefits payable for December 2023 and earlier.

For benefits payable for December 2023 (paid in January 2024) and earlier, a foreign pension based on post-1956 work will trigger the WEP if:

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  it is a private or governmental pension from a country that does not have a Totalization agreement with the United States; or

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  for benefits payable for January 1995 through December 2023 , it is a private or governmental pension from a country that has a Totalization agreement with the United States, and the individual is receiving both a non-totalized benefit from the United States and the foreign country (i.e., a foreign pension that is not based on a Totalization agreement with the United States); or

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  for benefits payable for December 1994 and earlier , it is any private or governmental pension from a foreign country, including one that is based on a Totalization agreement with the United States.

For more information on foreign pensions based on a Totalization agreement and the effect of WEP, see GN 01701.300. For a list of Totalization agreement countries, see GN 01701.005.

For benefits payable for January 2024 (paid in February 2024) and later, foreign pensions do not trigger the WEP.

For benefits payable for December 2023 (paid in January 2024) and earlier, foreign pensions do not trigger the WEP in the following situations.

Many countries have “multi-tiered” social insurance systems in which certain pension components are based on earnings from non-covered employment while other pension components are based on other factors (such as those listed in Subsection C in this section). In other countries, payments made under the social insurance system may appear to be based on earnings from non-covered employment, but in fact, they are not. Carefully question the NH during the claims interview and examine any evidence they have to determine whether the pension is based on earnings from non-covered employment and triggers the WEP.

To help the technician's evaluations, the following chart lists specific foreign pensions we know about that do and do not trigger the WEP. We will incorporate additional countries and pension types into the chart as we identify them.

It is not necessary to verify a foreign pension when the alleged amount of the pension based only on earnings from the non-covered employment, after currency conversion, is large enough to preclude the WEP Guarantee (the WEP Guarantee does not apply).

When the alleged amount of the pension based only on earnings from non-covered employment, after currency conversion, is low enough for the WEP Guarantee to apply, we need evidence of the pension amount. Evidence of entitlement to a foreign pension will generally be a letter or award notice issued by the paying agency in the foreign country. For applying the WEP Guarantee, see GN 00307.291.

Verify the exchange rate for conversion of the foreign currency into U.S. dollars following RS 00605.372D.

For benefits payable for December 2023 and earlier, the NH is responsible for notifying the agency when the NH is entitled to a pension based on earnings from non-covered employment after 1956.

For more information on payments while outside the United States, as well as foreign rights and responsibilities, refer to SSA Pub. No. 05-10137 (Your Payments While You Are Outside the United States).

If the NH reports entitlement to a pension based on earnings from non-covered employment, apply the WEP following GN 03001.020.

Consider whether to apply the WEP Guarantee following GN 00307.291.

If the report comes from a third party, see GN 03001.005.

As outlined in GN 00307.290A, the Social Security Fairness Act of 2023 (SSFA) repealed the WEP for benefits payable for January 2024 (paid in February 2024) and later. Therefore, the instructions in this section only apply for months payable for December 2023 (paid in January 2024) and earlier.

The WEP Guarantee Provision (WEP Guarantee) limits the reduction of a Social Security benefit subject to the WEP. For general information on the WEP Guarantee, refer to RS 00605.370.

Some foreign pensions are not based in whole or in part on work performed after 1956. ONLY apply the WEP Guarantee to pensions (or parts of a pension) that are based on work performed after 1956.

The following are case examples of the WEP Guarantee:

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  The number holder (NH) receives a foreign pension of $500 a month. The amount of a universal pension is $400 based on residency; $100 is based on earnings from non-covered employment. Separate the two figures to use only $100 to calculate the WEP Guarantee.

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  The NH makes voluntary Social Security contributions to the United Kingdom system during periods the NH is not working. Exclude these contributions when applying the WEP Guarantee.

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  Part of the pension is based on covered earnings. For example, part of the work on which the pension is based was for an employer that lacked a 3121(l) agreement for its employees, while part was for an employer that had such an agreement. If paid as one benefit, separate the covered earnings-based pension from the pension based on non-covered earnings and use only the amount based on non-covered earnings to calculate the WEP Guarantee.

We require proof of the pension when the alleged pension amount based only on the earnings from non-covered employment, after currency conversion, is low enough for the WEP Guarantee to apply. Only accept original and certified photocopies of foreign pension evidence when applying the WEP Guarantee. Evidence of entitlement to a foreign pension will generally be a letter or award notice issued by the paying agency in the foreign country.

Ensure the proof includes the amount of the pension in the first month of concurrent entitlement to both the pension and the Social Security benefit, as well as the months of employment (after 1956) and any months or amounts that are not based on earnings from that employment.

Apply the WEP Guarantee to compute the PIA when:

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  Based on the NH's allegations, use of the WEP Guarantee would result in a higher PIA than the modified formula; and

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  We verified the pension amount from the paying agency or employer.

If we cannot verify the pension, do not apply the WEP Guarantee.

Use the maximum reduction to compute the PIA. Explain to the NH we can recompute the PIA using the WEP Guarantee when we receive the necessary verification of pension amounts from the agency or employer.

Document all actions taken in the claims file.

Refer any questions on the WEP and foreign pensions to the Office of Earnings and International Operations at:

When we determine that a foreign pension is based in part on non-covered earnings and in part on a factor or factors that do not trigger the WEP, prorate the foreign pension to obtain only the part based on non-covered earnings.

Prorate the foreign pension as follows (convert from a weekly to monthly amount, when needed):

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  Step 1: Multiply the total pension amount by the ratio of the number of months of non-covered work over the total number of months used in the computation.

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  Step 2: Multiply the pension amount by the total number of months of non-covered work after 1956, and

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  Step 3: Divide this number by the total number of months used by the foreign country to compute the pension, based on both non-covered work and the pension payment that does not trigger the WEP.

EXAMPLE: A NH is entitled to a German pension of 400 Euros (EUR) based on periods of employment and voluntary contributions in Germany from January 1951 through December 1970 (a total of 240 months). The NH had 72 months of non-covered work before 1957. The NH made voluntary contributions to the German pension plan from January 1968 through December 1970 (a total of 36 months).

In this example, we would prorate the foreign pension as follows:

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  Step 1: Exclude the 72 months before 1957, since the WEP Guarantee applies only to non-covered earnings after 1956. 1951 - 1957 = 6 years. 6 x 12 = 168 months.

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  Step 2: Exclude the 36 months from 1968 through 1970 for which the NH made only voluntary contributions, that is, the NH did not work in non-covered employment. This leaves 132 months during which the NH worked in non-covered employment after 1956.

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  Step 3: Multiply 400 EUR by 132 (52,800 and divide this number by 240; i.e., 400 EUR  132 months = 52,800 divided by 240 months = 220 EUR. Therefore, for purposes of the WEP Guarantee, the worker's foreign pension based on earnings from non-covered employment is 220 EUR.