Q. I worked for an independent federal agency from 1977 to 1989, which had its own retirement system that was neither CSRS nor FERS. I had a break in service for one year then returned to work for the federal government (Transportation Department), where I was erroneously placed in FERS by human resources. In 2006, following a FERCCA ruling that took over 2½ years, I chose to be placed in CSRS Offset rather than FERS. I paid Social Security as a federal employee (plus through part-time jobs dating back to 1970) until I retired in 2010 with 32 years of service. I was told I would receive a reduction to my pension and/or Social Security at age 62 due to the offset. I have also read that there will be no reduction because I have more than 30 quarters of Social Security. Should I file for Social Security at age 62 since I will receive a possible reduction, or will I receive no reduction in Social Security benefits?
A. Because you are a CSRS Offset retiree, at age 62, your annuity will automatically be reduced by the amount of Social Security benefit you earned while a CSRS Offset employee. Further, you may be subject to the windfall elimination provision, which reduces the Social Security benefit of anyone receiving an annuity in whole or part from a retirement system where he didn’t pay Social Security taxes and has fewer than 30 years (not 30 quarters) of substantial earnings under Social Security. To see how that might apply to you, go to http://ssa.gov/pubs/10045.html.