How does the Windfall Elimination Provision affect Canadians collecting both CPP and U.S. Social Security—and what’s changing?

In this episode of Snowbirds Expat Radio, host Gerry Scott is joined by guest Sharon Conrod, CPA of Hanson Cross-border Tax Professional Corporation for an in-depth conversation about the Windfall Elimination Provision (WEP) and its implications for cross-border retirees. Together, they explore the history of WEP, recent updates, and how these changes may benefit Canadians who have worked in both countries.

The discussion also touches on the Government Pension Offset (GPO), the differences between U.S. and Canadian retirement systems, and the importance of understanding how these policies intersect.

If you're planning your retirement across borders—or already collecting benefits—this episode provides timely insight into how these evolving rules may impact your financial planning.

Key Takeaways:

• WEP was designed to adjust U.S. Social Security benefits for individuals receiving non-covered pensions, like Canada’s CPP.

• Recent changes may help reduce the impact of WEP for many Canadian retirees.

• The Government Pension Offset (GPO) affects spousal benefits and operates separately from WEP.

• Understanding the WEP calculation formula is essential to estimate your actual benefits.

• Political developments may influence the future of WEP and Social Security rules.

• Comparing CPP and U.S. Social Security isn’t always straightforward due to structural and tax differences.

• Canadian residents can now apply for CPP without worrying about automatic reductions to U.S. benefits.