Identification Number:
GN 01701 TN 14
Intended Audience:See Transmittal Sheet
Originating Office:ORDP OISP
Title:Totalization Benefits - General
Type:POMS Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part GN – General
Chapter 017 – Totalization Benefits
Subchapter 01 – Totalization Benefits - General
Transmittal No. 14, 10/19/2022

Audience

PSC: CA, CS, IES, SCPS, TSA, TST;
OCO-OEIO: BET, BIES, BTE, CIES, CTE, DSE, FCR, FDE, PETL, RECONE, RECONR, RECOVR;
OCO-ODO: CR, CST, CTE, CTE TE;
FO/TSC: CS, CS TII, CSR, CTE, DRT, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

OISP

Effective Date

Upon Receipt

Background

These POMS have been updated to clearly state that WEP does not apply to pensions based on non-work factors such as residency and citizenship. We have added Japan's National Pension to the list of pensions that are not subject to WEP, because Japan's National Pension is based on residency. We clarified sentences by using plain language to ensure proper application of the WEP

Summary of Changes

GN 01701.320 Types of Pensions in Totalization Agreement Countries That Will Not Trigger the Windfall Elimination Provision (WEP)

Revised the title to "Types of Pensions in Totalization Agreement Countries Not Subject to the Windfall Elimination Provision (WEP)."

Subsection A- Revised the subsection heading for clarity. Rearranged sentences in subsection B and moved the sentences to subsection A. Added POMS RS 00605.370

for information on the WEP Guarantee.

Subsection B- Revised the subsection heading for clarity. Revised the paragraph and updated the chart by adding Japan's National Pension. Added POMS GN 00307.290 for information on foreign pensions.

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).

 

  • 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.

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

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

 


GN 01701 TN 14 - Totalization Benefits - General - 10/19/2022