If you are a firefighter and are planning for retirement, you need to know the rules on receiving firefighter pensions and Social Security. Specifically, you need to understand how much the Windfall Elimination Provision (WEP) will reduce your Social Security payments.
This rule can reduce the Social Security benefit rules of anyone who:
1. Worked at a job where they did not pay Social Security taxes and qualified for a pension from that job
2. Worked at another job where they did pay Social Security taxes, which qualified them for Social Security benefits
While these WEP rules affect anyone who has a pension from a job where they didn’t pay Social Security, there is a special nuance in these rules that could help ease the pain for many firefighters. Before we jump into that, let’s cover a few of the basics.