PART II - Reduced Social Security

I hate it when my answer is wrong or incomplete and I did not
treat this reply with the respect it deserved.    Andrew and
Harry have responded with corrections and Harry has offered to
help out the original writer.   I* should stop trying to answer
these things at 1:30 AM.
Andrew first,
-----Original Message-----
From: Nelson, Andrew G. [mailto:CA34619 at]
Sent: Tuesday, April 25, 2006 7:11 AM
To: taxman at
Subject: RE: [Income Tax Help - CEN-TAPEDE] Reduced Social
Security Benefits
Just to clarify, the Social Security Administration considers CPP
as a “windfall”. It has nothing to do with whether CPP credit was
used to get SS or not.
In fact, it most aggressively applies to those who qualify for SS
on their own merits (ie. have 40 quarters of SS contributions),
but have less than 30 YEARS of SS payments.
If should be pointed out that OAS does NOT affect SS. If the SSA
is saying that OAS will affect SS, they are DEAD WRONG.
Robert Keats has had some success at overcoming this Windfall
elimination due to CPP. His Border Guide outlines some steps on
how to use the totalization agreement to avoid this procedure.
Harry is second and offers to help the writer.  I hate that
"wrong" and hang my head in shame!  I did not pay attention to
the OAS part.
You are wrong on this one. I refer you to document "GN 00307.290
Evidence of
Foreign Pensions and the Windfall Elimination Provision (WEP)" -
you can pull
this document up from SSA by "Googling" everything I have between
the quotes.
The specific "bullet" is # 6a. under C.POLICY which states:
"Payments made under the Old Age Security Program (OAS) are
residence-based and
may not be used to apply WEP. Payments made under the Canada
Pension Plan (CPP)
or the Quebec Pension Plan (QPP) are earnings-based and are
subject to WEP
offset." However,it's possible your writer may be confusing the
As an aside it took me approximately six months of persistance to
have my WEP
recalculated based on inclusion of 2004 earnings which were not
included in my initial award. It is sad to say that if I had not
made myself
knowledgable about my entitlement I would have missed out on it.
I would be glad to help out your "writer" without charge as long
as you promise
not to bill him for the referral. My phone # is (360) 371-xxxx.
Social Security has a lot of excellent information including
calculators you can "plug" your information into to verify your
benefit awards.
Harry Yxxxxxx
The original question follows:
Dear Dave,
I was advised by Social Security that my OAP benefits from Canada
will reduce the amount I receive from Social Security when I
I am a Canadian citizen and resident but all my previous earnings
were made in the US when I worked and lived there as a landed
Can this be avoided?  I paid both parts of the Social Security as
I was the employer.  These pensions would be my only source of
income which is not a lot.
Thanks for the response..
david ingram replies:
The US / Canada Totalization Agreement allows for the crediting
of US time against US and vice versa.
Nothing you can do about it.
I CAN tell you that in 9 out of 10 situations, this works out to
the advantage of the Canadian in my opinion.
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 10 PM 7 days a week  Vancouver (LA)
time -  (please do not fax or phone outside of those hours as
this is a home office)
email to taxman at
Disclaimer:  This question has been answered without detailed
information or consultation and is to be regarded only as general
comment.   Nothing in this message is or should be construed as
advice in any particular circumstances. No contract exists
between the reader and the author and any and all non-contractual
duties are expressly denied. All readers should obtain formal
advice from a competent and appropriately qualified legal
practitioner or tax specialist for expert help, assistance,
preparation, or consultation  in connection with personal or
business affairs such as at If you forward this
message, this disclaimer must be included."
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