Q. For early retirement before age 62, what are the requirements to qualify for the special retirement supplement? How is the SRS amount calculated? If I apply for the SRS, will it reduce my benefit when I apply for Social Security at age 62 or 67?
A. If you retire under a Voluntary Early Retirement Authority or Voluntary Separation Incentive Pay, you would be entitled to receive the SRS when you reach your minimum retirement age. The SRS will continue until age 62, when you are eligible for a Social Security benefit, whether or not you apply for it. Receiving the SRS, which is automatic, will have no effect on your Social Security benefit.
To estimate your SRS, take the most recent amount of Social Security benefit provided to you by the Social Security Administration, multiply it by your full years of FERS service rounded up to the next higher year, and divide the product by 40. Note: The SRS can only be reduced or suspended if you exceed the annual Social Security earnings limit. In 2012, that limit is $14,640.