Social Security for California’s classified employees
Will my Social Security benefit be reduced because I will receive a CalPERS pension?
Many classified employees are asking this question as they begin to apply for California Public Employees Retirement System (CalPERS) and Social Security benefits. The answer is simply “if you have always contributed to both Social Security and CalPERS on all earnings on which your CalPERS (or any other pension) is based, your Social Security should not be reduced.
The Windfall Elimination Provision (WEP) of the Social Security law causes a reduction in a person’s Social Security calculations if an individual does not contribute to Social Security on earnings that will result in another pension. Teachers in California are an example because they only contribute to CalSTRS, not Social Security.
There are instances where classified employees may be legitimately reduced however. Employees in some county offices of education do not contribute to Social Security but do contribute to CalPERS. Also, some CalPERS service credit purchases can cause a Social Security reduction if the purchase was for time when the employee was not contributing to Social Security, or they purchased “Additional Retirement Service Credit,” commonly referred to as “air time”. In these cases, the only way to avoid a reduction for the portion of the pension from funds not covered by Social Security is to have 30 years of significant contributions to Social Security.
Many CSEA members who are planning retirement soon have reported that during a visit to the Social Security office they were told by a representative that their Social Security will be reduced because they also are in CalPERS. In many of these cases, that is incorrect information.
If you have always contributed to both CalPERS and Social Security, you can avoid any misunderstanding regarding the Windfall Elimination Provision by taking with you a copy of a letter from one of Social Security’s very knowledgeable Public Affairs Officers, Robert Hartnett. If you are told you must have a reduction because you are also in CalPERS, please download and present the following letter for clarification.
Download letter (PDF 37KB)
If you are unable to resolve your Social Security issue, call 800-632-2128, extension 1205, and leave a message regarding your issue.