CSRS Offset and Social Security


Q. Will the Social Security Administration withhold payments into the CSRS Offset portion of a federal annuity if the annuitant is between the ages of 62 and 66 (in 2013) and earns more than $15,120 per year? Or is Offset separate from the Social Security benefits that are discussed in SSA publication 05-10069?

A. Here’s how the game is played. First, as a retiree, at age 62, your CSRS annuity will be offset (reduced) by the amount of Social Security benefit you earned while a CSRS Offset employee. That reduction is automatic.

Second, if you exceed the Social Security earnings limit, your Social Security benefit will be reduced by $1 for every $2 you earn above the limit ($15,120 in 2013). In the year you reach your full retirement age, the reduction is $1 for every $3 above a different limit ($40,080). There is no reduction beginning in the month in which you reach your full retirement age.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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