Earnings limit and special retirement supplement

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Q. I retired under FERS in January 2010 after 23 years of service. In September 2012, I reached my minimum retirement age of 56½ and started receiving a supplemental annuity since I was too young to begin receiving Social Security benefits. I was informed that if I was employed and making over $14,000 a year, I would lose the supplemental annuity, calculated proportionately with how much I was making over the $14,000 threshold. Is nontaxable income considered income that would affect my supplemental annuity payment? Does tax-exempt income earned overseas affect my supplemental annuity payments?

A. The current earnings limit is $15,120. The reduction in the special retirement supplement is $1 for every $2 earned over the limit. The only earnings that are counted are those from wages and self employment. It doesn’t matter where they are earned.

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