CSRS offset penalties for VA compensation


Q. My father has been receiving VA compensation (50 percent) for injuries he received while in the Army. He retired from DoD in 2002 as a CSRS offset and receives retirement pay for that. His VA compensation injuries have gotten worse and he is going to ask to be re-evaluated by the VA. Does his compensation from the VA affect his CSRS retirement or is there an offset because I know that his Social Security will be offset when he reaches 62.

A. His VA compensation will have no affect on his CSRS annuity. However, as you pointed out, because he is covered by CSRS offset, when he reaches age 62, his CSRS annuity will be reduced by the amount of Social Security benefit he earned while covered by CSRS offset. Any Social Security benefit he earned outside of CSRS offset will not be affected


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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