Q. If I retire and receive the FERS supplement, will that money be subject to an offset if I have a job and earn income similar to Social Security? When receiving Social Security, does this limitation on earning income end when I become eligible for my full Social Security entitlement? In my case, I think it’s 67 because I was born in 1956.
A. The special retirement supplement operates under the same rules as a Social Security benefit. It is subject to the Social Security earnings test. If you are under full retirement age, your SRS will be reduced by $1 for every $2 you earn above the limit. The SRS ends at age 62 when Social Security kicks in. However, the earnings test continues for that benefit. In the year you reach full retirement age, it will be reduced by $1 for every $3 you earn above the limit, until the month in which you reach full retirement age. Then there is no limit and no offset.