Q: I am a FERS retiree and my retirement date is Dec. 31, 2009. Because I am under 62, I receive the FERS annuity supplement. I received my final paycheck in January 2010 and also a payment for my unused annual leave. My 2010 W-2 shows a payment of $17,216.36 for these two items. Is the payment for the unused annual leave applicable to the earnings test for the supplement?
A: No, it isn’t. Nor is the amount of money in your final pay check. To better understand the “first year rule” on earnings, go to www.socialsecurity.gov/pubs/10069.html.