Social Security & Public Pensions Flashcards
0
Q
T or F - WEP will never reduce PIA by more than half of the pension amount from uncovered work.
A
True
1
Q
What is the logic behind WEP?
A
SS is designed to provide higher benefits per dollar of contribution for lower wage earners. This favors those workers who worked mostly in non covered work in the public sector, and have sizable public pensions,but who also did some covered work, and have modest SS benefits. WEP reduces the effect of SS bend points and reduces the “windfall” effect.
