Effective Dates: 06/05/2025 - Present Previous | Next

TN 154 (06-25)

GN 00307.290 Evidence of Foreign Pensions and the Windfall Elimination Provision (WEP) for December 2023 and earlier

CITATIONS: 

Social Security Act, Section 215(a)(7)(A)

20 CFR 404.213

A. Introduction to foreign pensions and the Windfall Elimination Provision (WEP)

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 insurance system, or government of a foreign country.

The Social Security Fairness Act of 2023 (SSFA) repealed the WEP for benefits payable for January 2024 (paid in February 2024) and later.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

B. Policy for foreign pensions that trigger WEP

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:

  • •

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

  • •

    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 a non-totalized benefit from both 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

  • •

    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.

NOTE: 

Use only the part of the pension that is based on non-covered work after 1956.

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.

C. Policy for foreign pensions that do not trigger WEP

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.

1. Pensions based on non-covered foreign employment before 1957

Foreign pensions based solely on earnings from non-covered foreign employment before 1957 do not trigger the WEP (i.e., Ghetto pension or commonly known by the German acronym ZRBG). For more information on ZRBG, see SI 00830.711.

2. Dual coverage situations

Foreign pensions earned by the following persons in dual coverage situations do not trigger the WEP:

  1. a. 

    U.S. citizens and residents who worked in foreign countries and were subject to both U.S. Social Security and foreign social insurance coverage on the same earnings.

    EXAMPLE: a U.S. citizen working for a foreign affiliate under a 3121(l) agreement, see RS 01901.070; or

  2. b. 

    Self-employed persons who were covered by both the United States and the foreign country on the same earnings.

3. Universal pension supplements

Universal pension supplements that are payable to all aged individuals in a particular country, and not just to qualified workers, do not trigger the WEP and should not be included in calculating the WEP Guarantee Provision (referenced as the WEP Guarantee hereafter).

EXAMPLE: Canada pays a universal pension supplement to all legal residents of Canada.

4. Voluntary social insurance system contributions

Voluntary social insurance system contributions, which some countries allow individuals to make to increase the amount of their pensions, do not trigger the WEP. If a pension is based on both voluntary and non-voluntary contributions, the portion based on voluntary contributions does not trigger the WEP and should not be included in calculating the WEP Guarantee.

EXAMPLE: Individuals in Jersey, Lichtenstein, and the United Kingdom may make contributions during periods when they are not working.

5. Statutorily mandated minimum social insurance benefits

A statutorily mandated minimum social insurance benefit, which is the difference between the amount of the benefit based on work earnings and the actual amount paid after the benefit has been raised to a statutory minimum, does not trigger the WEP and should not be used to calculate the WEP Guarantee.

EXAMPLE: Italy pays a statutory minimum social insurance benefit, administratively increased if the benefit based on the individual's work history alone is not sufficient to meet the minimum required by law.

6. Other allowances for dependents

Allowances for dependents that increase the pension amount for a NH, but are unrelated to the NH's actual work performed, do not trigger the WEP and should not be used to calculate the WEP Guarantee.

EXAMPLE: Both Ireland and Germany pay family allowance benefits for children, which are unrelated to the pensioner's work history.

7. Needs-based pensions

Needs-based pensions, which are based on need rather than earnings, do not trigger the WEP.

EXAMPLES:

  • •

    Costa Rica pays a non-contributory pension to persons who have not contributed to any pension regimes, provided they meet the applicable requirements (e.g., orphans, persons with disabilities, widows between 55 and 65 who are in financial distress).

  • •

    Libya pays a basic pension to those who have no other source of income.

  • •

    Switzerland pays an Extraordinary benefit that is needs-based.

8. Pensions based on another person's earnings

Pensions based on another individual's earnings do not trigger the WEP.

EXAMPLES:

  • •

    Libya pays a survivor's pension that is based on the earnings of a deceased worker.

  • •

    Aruba pays a widows' and orphans’ insurance (Algemene Wezen- en Weduwenverzekering [AWW]) pension, which is based on the earnings of a deceased worker (not the NH receiving the AWW pension).

9. Residency or citizenship-based foreign pensions

Foreign pensions based solely on residency or citizenship do not trigger the WEP.

EXAMPLES:

  • •

    Australia and New Zealand pay Social (insurance) Security benefits that are financed entirely from general revenue. There is no direct tax to either employees or employers to support the program. Both countries pay the benefits to all residents and may pay benefits abroad in certain situations.

  • •

    In Israel, the National Insurance Institute (NII) pays a flat-rate old-age pension to qualifying Israeli residents. The NII pension is payable whether a person worked or did not work.

  • •

    Japan's National Pension is based only on residency and not subject to the WEP. Contributions to this pension fund are not based on non-covered earnings.

10. Any part of a foreign pension that is based on covered work

Any part of a foreign pension that is based on earnings from covered work is not subject to the WEP.

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.

D. Multi-tiered Social Insurance Systems

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.

Country

Name of Pension

 The WEP Applies (Y/N)

 

Aruba

 

Algemene Weduwen- en Wezenverzekering (AWW) – earnings of a deceased worker (not the NH receiving the AWW pension)

N

 

Algemene Ouderdomsverzekering (AOV) – earnings based

Y

 

National Ordinance on a General Pension (Landsverordening algemeen pensioen)/Occupational Insurance – earnings based

 

Y

Australia

Social Security – residency based

N

Canada

Old Age Security Program (OAS) – residency based

N

Costa Rica

Basic Contributory Pension – earnings based

 Y

 

Mandatory Supplementary Pension –earnings based

Y

 

The Noncontributory Pension – needs based

N

 

Voluntary Supplementary Pension – earnings based

 

Y

Denmark

Folkepension (FP) – residency based

N
Finland

 

National Pension Scheme (NPS) – flat rate based on residency

N

Japan

 Employees' Pension Insurance – earnings based

Y

 

Japan's National Pension (JNP) - residency based

 

N

 

Dependent Spouses under EPI - spouses covered under their spouse's (not their own) non-covered earnings - not own earnings

 

N

Libya

Basic Pension – needs based

N

 

Permanent Disability Pension – earnings based

Y

 

Retirement Age/Old Age Pension – earnings based

Y

 

Survivor's Pension – earnings of a deceased worker (not the NH receiving the AWW pension)

N

Liechtenstein

 

Occupational Insurance – earnings based

 

Y

 

Statutory Insurance (Statutory Old-Age and Survivor Insurance Act) – earnings based

 

Y

 

Voluntary Private Pension schemes – earnings based

Y

Iceland

Obligatory Worker's Pension System – earnings based

Y

 

 Old-age pension – residency based

N

 

Supplementary Insurance System – earnings based

 

Y

Israel

National Insurance Institute (NII) – residency based

N

Netherlands

Algemene Ouderdomswet (AOW) – residency based

 

N

 

Employed Persons Insurance Scheme (EPIS) – earnings based

Y

 

Self-Employed Persons Insurance Scheme – earnings based

 

Y

 

“Pre-Retirement” Payment – form of unemployment compensation

N

New Zealand

Social Security – residency based

N

Norway

Basic Pension Program under National Insurance Scheme (NIS) – residency based

N

Spain

Old Age Pension - earnings based

Y

 

Noncontributory Old-Age Pensions - needs based on residency

N

Suriname

 General Old-Age Pension Scheme – residency based

N

 

General Pension Act 2014 – earnings based

Y

Sweden

Basic Pension Program – flat rate based on residency

N

 

Supplementary Pension Program (known as ATP) – earnings based

Y

Switzerland

Ordinary pension – earnings based

Y

 

Extraordinary benefit - needs based on residency

N

Taiwan

Labor Insurance – earnings based

Y

 

National Pension Program – residency based

N

E. Policy for verifying foreign pensions

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.

F. Currency Conversion

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

G. Reporting responsibilities

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).

H. Procedure for when a beneficiary reports a foreign pension based on earnings from non-covered employment

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.

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0200307290
GN 00307.290 - Evidence of Foreign Pensions and the Windfall Elimination Provision (WEP) for December 2023 and earlier - 06/05/2025
Batch run: 09/15/2025
Rev:06/05/2025