Q. I am a 54-year old retired federal law enforcement officer, currently re-employed as an annuitant in a federal position with a waiver of the reduction of pay for my pension. The term of the position is nearing expiration and I am considering federal re-employment in another position that does not provide a waiver of the reduction in pay for my pension. I know that my pay will be reduced by my basic FERS annuity payment, but will it also be reduced by my FERS supplement amount? I have two years until I reach minimum retirement age, when my supplement will be otherwise subject to the earnings test (per the special Law Enforcement retirement provision).
A. While you could earn as much as you want in outside employment without experiencing a reduction in your special retirement supplement until you reached your minimum retirement age, if you returned to work for the government, the salary of your new position would be reduced by the combined total of your annuity and your SRS.