TN 27 (05-99)

A. Introduction

Military reservists who receive a pension based in whole or in part on reserve service before 1988 have been subject to the WEP. However, P.L. 103-296 excludes the application of WEP to Social Security benefits where the pension is based, in part, on non-covered reserve duty before 1988, but after 1956.

B. Policy

The WEP no longer applies to the benefits of retired or disabled workers receiving military pensions based, in part, on inactive duty (including weekend drills) from 1957 to 1987. The WEP will not apply because of pensions based on military reserve service before 1988 and after 1956, but may still apply because of the receipt of another non-covered pension.

There is no time limit for a beneficiary to ask that we recompute his/her PIA to remove the WEP reduction. However, reductions based on this provision cannot be removed for occurrences before 1/95.

This provision applies to:

• claimants whose date of entitlement to retirement or disability benefits is 1/95 or later; and

• beneficiaries on the rolls as of 1/95 whose PIAs were computed under the modified formula because of a military pension based, in part, on non-covered reserve service after 1956 and before 1988.

Benefits for months before 1/95 may be subject to WEP. After removal of WEP caused by military reserve service, the WEP may still apply because of receipt of a pension based on non-covered employment.

C. Procedure

Follow the procedure below when processing the “Request for WEP Exclusion”.

1. District Office

1. When a beneficiary contacts Social Security, proof of the reserve duty for established claims is not needed to recompute the modified PIA.

2. Annotate request on a SSA-795 and forward it to the PSC or transmit the request for recomputation to PSC/ODIO.

3. Develop for other pensions as appropriate.

2. PSC

Review the claim to verify the reduction for WEP was because of a military pension based, in part, on military duty and take the following actions:

a. Initial Claims

For new claims (including advance filed claims), compute the 1/95 PIA without application of WEP for the non-covered military reserve service. Apply WEP to any other applicable PIA before 1/95 per RS 00605.360 ff.

b. Adjudicated Claims

If the number holder's PIA is due a recomputation based on B., recompute the PIA effective 1/95 and remove the WEP reduction based on reserve service for non-covered months from 1957 to 1987. Correct the PIFC accordingly.

When a request for a recomputation does not apply (i.e., there is no exclusion) notify the beneficiary of the reason.

Annotate “MRS WEP RECOMP” in Special Message field on the MBR when WEP reduction because of the military reserve pension is removed, but WEP continues because of another pension. Show the exclusion code for the other reason if the claim is ever excluded from the WEP.

NOTE: Code “G” will be used when the case is excluded because the pension is based on military reserve service. See RS 00605.374 for WEP coding.

D. References

• Computation of the PIA under the 1978 NS method, RS 00605.021

• 1977 Simplified OS PIA, RS 00605.030

• WEP Computation and Recomputation Methods, RS 00605.369

• WEP Postentitlement alerts, RS 00605.374