Pension-eligible workers face complex Social Security rules that may reduce benefits. How to more accurately estimate retirement income

When Joyce Debnam’s husband passed away, she began receiving $1,400 a month in Social Security survivor benefits.

Eight months later, that income unexpectedly changed. The trigger: Debnam retired from her job at the United States Postal Service in 2013 after four decades of service.

That life change prompted Debnam’s Social Security benefits to be cut to just $174 a month. Moreover, the Social Security Administration notified her she had to return $5,000 in benefits she had been overpaid.

“When I got that letter, I almost hit the floor,” Debnam said.

She was particularly surprised because before her retirement, Debnam had contacted the Social Security Administration to let them know she was retiring and asked whether that would affect her monthly checks.

“They told me no, that I was eligible for retirement and I would get my money,” Debnam said.

Today, Debnam, 80, of Suitland, Maryland, has paid back the $5,000 sum and relies almost exclusively on her postal pension to pay bills, which means her other retirement goals such as traveling or fixing up her home are not possible.

Debnam is one of millions of workers who is affected by Social Security rules related to public workers and reductions in the benefits they are eligible to receive.

The Windfall Elimination Provision, or WEP, reduces benefits for people who receive a pension from work where they did not pay into Social Security and also had fewer than 30 years of substantial employment or covered employment.

About two million people, or 3% of Social Security beneficiaries, were affected by the WEP as of December 2022, according to the Congressional Research Service.