Q: I started government service in 1973. I quit in 1985 and came back in 1986 as CSRS offset. I worked a second job from 1987 until the present. For many of these years my basis for Social Security was at or above the max. I retired from government service in 2009, and I receive the CSRS offset pension based on 32 years, and of course it is not being offset yet. I am still working that second job, and also, I am working full time as a contractor now. How much of my Social Security benefit will count to reduce my pension? I would expect that any post-2009 quarters would have no effect to offset. But the 1987 thru 2009 quarters are hybrid, where I worked both a government job for 85 percent of my full income, and a private job for 15 percent of my income. I expect to retire at age 63.
A: Your CSRS annuity will be reduced only by the amount of Social Security benefit you earned while covered by CSRS Offset.