Windfall Elimination Provision for Canada Pension Earning

Nishant · Post by **Nishant** » Thu Aug 27, 2015 9:36 pm

Does any of the two eligibility- Canadian employer pension or CPP affect SS payment?
If yes for Canadian employer pension only, does applying to Social Security using the SSA 2490-BK Application for Benefits under a US International Social Security Agreement- a way around?

nelsona · Post by **nelsona** » Fri Aug 28, 2015 9:59 am

Yes, any pension income that was from work not subject to SS withholding is subject to WEP. So both your CPP and your prvate pension (but not OAS) will affect your SS benefit, but only if you have earned between 40 and 120 SS credits.

If you worked less than 40 credits, then WEP is not applied because your SS is determined by the Totalization agreement. If this is your case then you don't have to worry. Your SS will be very small in any event, but they cannot reduce it further.

If you have more than 120 credits (30 years in US work history) then WEP is eliminated.

There are court cases and appeals that are trying to challenge this, based on saying that if the 30 years of history was met using combined US and Cdn work history, that WEP should be eliminated, but these have not resulted in consistent over tunrsn.

You can follow some developements on the keats connelly website forums.

Nishant · Post by **Nishant** » Sun Aug 30, 2015 3:50 pm

Thank you.
I am exploring the option of what happens if I complete 40 credits but do not take green card.

Having completed over 40 QC would make social security and medicare available while I am in US for 6 months.

I have own residence in Canada where I can stay for 3 months and would be willing to pay cash for any health emergencies.

I also have residence in India where I can spend winter months.
Pay taxes to US on world income and pay taxes to other two countries for local incomes

Are there any issues in above plan?

nelsona · Post by **nelsona** » Mon Aug 31, 2015 7:09 am

Whether or not you have GC has no bearing on SS or WEP, nor where you end up living, Social security will be available to you when you choose, not when you are in US for any particular amount of time..

Nishant · Post by **Nishant** » Tue Sep 01, 2015 12:01 am

Sorry I was not clear enough. I understand that once I complete 40 QC then WEP kicks in but it makes me eligible for medicare even if live in US for max 6 months

Also by just completing 40 QC, I may lose 90%- 40%= 50 % of first bend point which is say $ 500 max from social security.

My interest is that when my wife may also just complete 40 QC which will help avoid her part A medicare payment but her social security will be insignificant due to low income. Therefore the payment she is likely to get is 50 % of my social security before WEP or 50% of my net social security i.e. after WEP

nelsona · Post by **nelsona** » Tue Sep 01, 2015 6:07 am

Spousal benefits are determined after WEP is applied to the primary spouse, but then they are NOT applied a second time on her. So she will get 1/2 of what is finally determined for you.