Q. I retired (federal law enforcement) on Feb. 29 at the age of 55. My total law enforcement time was 20 years with an additional seven years of federal service. I am receiving a partial annuity until the Office of Personnel Management has the time to finish it, which may be six or seven months. I received a lump-sum payment upon my retirement for my annual leave. I would like to take a job as a reinstatement employee with federal service. Do I lose my entire annuity if I do this? I understand that retirement deductions will be held, but I need to know if I can keep my annuity that I am receiving if I accept a federal position as a reinstatement employee.
Also, if I make more than the $14,500 limit, it’s my understanding that the additional supplement under FERS will be reduced by $1 for every $2 I make. Is this applicable at my age (55), or does this apply when I reach another age? I thought I could make as much money until I was 57 before the supplement was reduced.
A. Unless you are hired into a position that allows you to keep your annuity and the full salary of your new position, your salary will be offset by the amount of your annuity. You may earn as much as you want before you reach your minimum retirement age, which, in your case, is 56. After that, you’ll be subject to the Social Security earnings limit. In 2012 that limit is $14,640.