FERS supplement question


Q: I plan to retire this year under FERS and I am considering accepting a job after retirement that will put me over the earnings limit for the supplement. I understand I will lose it or it will be reduced for every year I earn too much. My question is, am I only penalized for the additional years I work? If I retire at age 56, work two additional years that eliminate my SRS, would it then be reinstated for me from age 59-62 when social security kicks in, or would it be reduced/forfeited forever?

A: The special retirement supplement is only reduced or eliminated if you exceed the annual Social Security earnings limit. If, before age 62, your earnings fall below the threshold, the SRS will be restored. At age 62, when you become eligible for a Social Security benefit, the SRS stops. This is true whether or not you apply for that benefit.


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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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