Q: I am a 57-year-old FERS annuitant who retired in 2010 with 33 years of service. I am considering going back to work part-time for my former agency (Dept of Energy) in a position that will allow me to receive both my annuity and the full salary of the new position. In addition to my FERS annuity, I am also receiving a special annuity supplement of about $12,000 per year. Normally, if I become employed and earn a salary I will lose $1 of the special annuity supplement for every $2 I earn over the IRS limit of about $14,100 per year. Will I lose the special annuity supplement if I become a part-time Fed and earn over the limit, or is the supplement protected in the same way that my annuity will not be offset by my earnings?
A: Your special retirement supplement will not be protected. It will be reduced in the manner you described if you exceed the Social Security earnings limit.