Special retirement supplement


Q. I am a FERS retiree. I receive a special retirement supplement. Is this taxed? I have not gotten anything except my 1099R from the CSA.

A. Although the special retirement supplement is designed to approximate the Social Security benefit you earned while employed under FERS, the money comes from the CSRS Retirement and Disability Fund. As such, it is taxed in the same way as the rest of your annuity. A portion of that total is nontaxable while the rest is taxable. To find out what the nontaxable portion will be, go to www.irs.gov/pubs/irs-pdf/p721.pdf and read the IRS’ Tax Guide to U.S. Civil Service Retirement Benefits.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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