The situation is quite different for those who have made little or no contribution or contribution below that which is expected of a person who, upon retirement, will be given an average pension benefit.Â
The WEP (Windfall Elimination Provision) is a problem for them, as stated in an article by Capital News Portal. It seeks to decrease the ‘perceived benefits’ of getting money from external pensions, private (endowment), or part-time earnings.
Impact On Migrants
Today, those migrants who have contributed only for several years and can return to their home country can have their income decreased. Thousands of immigrants have explored this measure within the Social Security Administration (SSA), and it has also raised a lot of controversy.Â
Not only does it strive to preserve the retirement benefits earned by migrant workers in their home country, but it can cut their income in America by up to 50 percent. In essence, it helps to guarantee that they get the correct number they are supposed to receive.
Antecedents To Income Loss
The precise degree of reduction in benefits, however, depends on the number of years a migrant has contributed to the American system. However, there are cases whereby some countries complement their work periods with those of the American government due to entering into some form of agreement or arrangement with the U.S. government.
- Years of Contribution: The thing that defines the extent of the reduction is the time one has served in the United States’ healthcare system.
- International Agreements: Some countries have reciprocal agreements that allow for the integration of work credits, which may ease the WEP’s effect.
- External Pensions: The WEP can also be affected by the pensions from other sources. The use of the WEP can also be affected by the pensions from other sources.