Q. I am eligible to retire under CSRS with what is currently 37 years of service (SCD JUL 1982). I am still working and plan to for a couple of more years. However, I became eligible for full Social Security January 2019, for work employed outside of CSRS. Would my CSRS pension (when I retire) be reduced by this amount if I were to sign up for it or is it the Social Security amount that will be reduced or eliminated?
A. If you have reached the age when you are eligible for a full Social Security benefit (between 65 and 67, depending on your year of birth), you can earn as much as you want without it having any affect on your Social Security benefit. However, because you worked under a retirement system where you didn’t pay Social Security taxes, when you retire your Social Security benefit will be subject to the Windfall Elimination Provision of law. To find out how the WEP will reduce that benefit, go to https://www.ssa.gov/pubs/EN-05-10045.pdf. FYI, receiving a Social Security benefit would have no affect on your CSRS annuity.