Social Security: The Windfall Benefit Provision

Publication Date: January 2004

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Labor

Type:

Abstract:

The windfall elimination provision reduces the Social Security benefits of workers who also have pension benefits from employment not covered by Social Security. Its purpose is to remove an advantage these workers would otherwise receive because of Social Security's benefit formula that favors workers with smaller amounts of Social Security-covered career earnings. Opponents contend that the provision is basically inaccurate and often unfair. In both the 107th and 108th Congresses, five bills have been introduced that would modify or repeal the provision. This report will be updated annually or upon legislative activity.1