If a number holder (NH) receiving a Totalization benefit continues working and later
earns additional U.S. quarters of coverage (QC), they may become insured based on
U.S. coverage alone. If so, we generally recompute the benefit and convert the NH
to a non-Totalization benefit because the non-Totalized benefit is generally greater
than the Totalization benefit.
However, if the NH also receives a pension based on non-covered employment, WEP may
apply to the non-Totalized benefit, because the NH no longer receives a Totalization
benefit. Therefore, in some situations the non-Totalization benefit with WEP would
be less than the Totalization benefit when WEP does not apply.
NOTE: WEP does not apply when the NH receives a pension based only on non-work-related factors,
such as residency and citizenship.
REMINDER: The Social Security Fairness Act of 2023 (SSFA) repealed the WEP for benefits payable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).