SSA benefits /windfall provision

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Kader99
Posts: 2
Joined: Wed Jan 13, 2021 10:44 am

SSA benefits /windfall provision

Post by Kader99 »

I applied to SSA benefits and because I worked for 10 years in Quebec I am receiving a pension from my company which I understand will be deducted from my SSA benefits (Windfall provision). I have accumulated 19 years of work at the US and hence eligible to collect SSA benefits.
My question is does the 9 years income from Canada be added to my 19 years in the US to calculate my benefits since a windfall amount is reduced from my benefit.
Thanks in advance for the clarifications.

Kader99
nelsona
Posts: 16669
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: SSA benefits /windfall provision

Post by nelsona »

No, you will get credit for only the 19 years you paid into social security. The Windfall provisions will take into account both your Cdn company pensions AND your QPP/CPP, but not your old age security.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
Kader99
Posts: 2
Joined: Wed Jan 13, 2021 10:44 am

Re: SSA benefits /windfall provision

Post by Kader99 »

Thanks Nelsona.

I can understand the QPP/CPP but why is the private pension from the company is deduced from the benefits.
Looks to me like double taxation!
nelsona
Posts: 16669
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: SSA benefits /windfall provision

Post by nelsona »

The rules are that ANY pension on which SS was not deducted is subject to WEP. This includes even some US pensions.

And it is not the entire amount of the pensions that will be "deducted". There is a formula, based on how long you contributed in US, and a maximum reduction.

WEP is ALWAYS unfair to foreign workers, so it is just a question of how unfair. I would argue that CPP being included is more unfair than including foreign pensions, since at least CPP is equivalent.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
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