Retirement scenarios


Q: I’m 61 and a 70-percent service-connected veteran receiving Veterans Administration disability benefits. I am also a CSRS -offset federal employee. I took a lump sum in 1996 and resigned from federal service. I returned to federal service in 2002 as a CSRS-Offset employee, after working for a local government and paying Social Security. I have over SSA 40 credits. How will my annuities be calculated at age 62 if I were to retire then? How would the CSRS offset affect my VA or Social Security benefits and vis-a-vis? I am trying to decide whether to redeposit my lump sum I took out in 1996, should I redeposit?
What happens if I work until age 66 or older?
How does this affect my overall scenario?

A: Because you took a refund of your retirement contributions after February 28, 1991, that time will be included when determining your length of service; however, you must repay that money plus interest to get any credit for it in your annuity computation. As a CSRS Offset employee, when you retire, your annuity will be reduced by the amount of Social Security benefit you earned while covered by CSRS Offset. The age at retirement is only relevant if an employee retires before being eligble for a Social Security benefit. The reduction is automatic at age 62.  Note: Any civil service or Social Security benefits to which you are entitled won’t affect your VA benefits.


About Author

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

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