Unused leave lump sum and Social Secutiry benefits

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Q: I retired on Dec. 31, 2010, and received the lump sum compensation for unused leave days. The amount exceeds the $14,160 allowed to earn before Social Security reduction. Will my Social Security benefit be reduced because the lump sum I received?

A: No, the Social Security earnings limit only applies to earnings from wages and self employment.

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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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