Q. I am 63 and have 28 years of paying Social Security under CSRS Offset, and 13 years of CSRS. For CSRS Offset, they show a reduction of Social Security to almost 50 percent due to the windfall; yet with the Offset, it appears that I still will be getting the same total retirement amount (approximately 80 percent of High-3) between Social Security and windfall. If I kept working under Social Security until I hit 30 years, will the CSRS annuity be reduced based on the increased Social Security so its stays within the approximate 80 percent of my High-3, or will it increase based on the additional Social Security?
A. Your annuity will be initially offset by the amount of Social Security benefit you earned while a CSRS Offset employee. However, when you receive that Social Security benefit there will be a 5 percent reduction for every year that you have fewer than 30 years of substantial earnings under Social Security. If you continue to have earnings from wages or self-employment from which Social Security deductions are taken, the amount of your Social Security benefit will be increased.