WEP and CSRS offset

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Q. I had 10 years of federal service in December 1987, and I elected to keep my retirement in CSRS rather than FERS. We moved to where there was no federal agency nearby where I could be employed. In 2006 I was able to get back in a federal job position and I was placed in CSRS Offset when the temporary position became full time. I have now worked 10 more years in CSRS Offset. I have worked in the private sector for 30 years, paying into Social Security.

I hope to retire in a few years, and I have redeposited some amounts that were for some temp assignments I had in the first few years. How will the offset (windfall elimination provision) affect me? I have been told that it may be figured several different ways depending upon who does it at the Office of Personnel Management. I feel I am getting screwed since I worked in both systems a fair amount of time, but I can’t get full benefit by “getting two government pensions” as the WEP states.

A. If you have at least 30 years of substantial earnings under Social Security when you retire, you won’t be affected by the windfall elimination provision. To find out more about the WEP, go to www.ssa.gov/pubs/EN-05-10045.pdf. To learn how the Offset portion of your CSRS annuity would be calculated, go to www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c050.pdf and scroll to Section 50A3-1-4. As you’ll see, the amount of your CSRS Offset annuity won’t be reduced, you’ll just receive the payments from two different places, OPM and the Social Security Administration.

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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.

1 Comment

  1. Linda Wagoner on

    Thank-you, that is what I though from reading the info, but was not sure where I needed to be as far as years with Social Security and that is why I haven’t retired yet….

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