Q: I understand that my husband’s CSRS Offset annuity will be offset by hi eligibility to Social Security benefits at age 62. However, he plans on continuing to work after this and will most likely not be able to receive Social Security benefits under the annual earnings test. Will his CSRS Offset annuity still be offset if he’s not receiving Social Security benefits due to the annual earnings test provisions?
A: When he reaches age 62 and is eligible for a Social Security benefit, his CSRS annuity will be reduced by the amount of Social Security benefit he earned while covered by CSRS Offset. If his earnings from wages or self-employment will exceed the Social Security earnings limit, there’s no point in his applying for a Social Security benefit until he either earns less than the limit or quits working.