Exchange rate for Canadian income for WEP calculations

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NewCanadian
Posts: 75
Joined: Sun Mar 07, 2010 5:07 pm

Exchange rate for Canadian income for WEP calculations

Post by NewCanadian »

I am assuming that Canadian employer pension (No cola) plus CPP at start of pension is the amount used for WEP reduction for Canadian who would get social security.

Is exchange rate applied one time at start of SS to this C$ income for WEP reduction for a fixed reduction lifelong or depending of average yearly exchange rate, WEP reduction varies year to year?
nelsona
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Re: Exchange rate for Canadian income for WEP calculations

Post by nelsona »

Yes, the US value of your CPP in the first month in which you collect both SS and CPP is used for WEP purposes, and that is that. Neither later currency fluctuations, nor later adjustments to your CPP are considered. A few years ago, when the CAD was high, some had inflated CPP value used for WEP, and there is nothing that can be done to adjust this.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
exPenn
Posts: 106
Joined: Tue Aug 20, 2013 3:06 pm
Location: GTA

Re: Exchange rate for Canadian income for WEP calculations

Post by exPenn »

Social Security uses the US Treasury Department exchange rate (https://www.fiscal.treasury.gov/reports ... rrent.html ) for calculating WEP. Treasury Dept. rates are only updated quarterly, so you are not subject to day to day fluctuations while your WEP is being calculated.
NewCanadian
Posts: 75
Joined: Sun Mar 07, 2010 5:07 pm

Re: Exchange rate for Canadian income for WEP calculations

Post by NewCanadian »

Thank you all. I would assume that spousal SS payment would be half of my SS before WEP is applied. Right?
NewCanadian
Posts: 75
Joined: Sun Mar 07, 2010 5:07 pm

Re: Exchange rate for Canadian income for WEP calculations

Post by NewCanadian »

Thank you all. I would assume that spousal SS payment would be half of my SS before WEP is applied. Right?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Exchange rate for Canadian income for WEP calculations

Post by nelsona »

No, I believe it would be after WEP. But then the spouse's portion would not be WEP'd.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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