Q. I am in CSRS offset, and I am eligible to retire now. I turned 66 on April 8. I started collecting Social Security benefits as of Jan. 1 and continue to work. How will my retirement calculation change when I retire? Most, but not all, of the Social Security benefits were earned while I was under CSRS offset. I copied the following excerpt from “Ask the Experts”: “In the year you reached your full retirement age, it would be reduced by $1 out of every $3 you earned. After that, there wouldn’t be any reduction.”
I don’t understand what will be reduced from my Social Security or my retirement when I retire?
A. The quote applies to the Social Security earnings test. Once Social Security recipients reach their full retirement age, they can earn as much as they want from wages or self-employment without it affecting that benefit.
On the other hand, when you retire, your CSRS annuity will be reduced by the amount of Social Security benefit you earned while a CSRS Offset employee. The amount you receive will be the same; it will just come from two places: the Office of Personnel Management and the Social Security Administration.