CSRS offset and windfall elimination


Q. Is there a difference between the Offset and the windfall elimination? Which of the two agencies is responsible for deducting which amount from which benefit?

I am a CSRS offset employee who retired Sept. 1, 2010. I started getting Social Security benefits in January 2010.  The Social Security Administration and OPM have sent correspondence notifying me that there will be some sort of reduction and each claims the right to do the reducing.  I am confused as to the nature of Offset vs Windfall elimination and who is supposed to do the deducting.  It is my understanding that one or the other is responsible and not both.

A. As a CSRS offset employee, when you are first eligible for a Social Security benefit at age 62, OPM will offset your CSRS annuity by the mount of Social Security benefit you earned while covered by CSRS offset. Concurrently, if you have fewer than 30 years of substantial earnings under Social Security, under the windfall elimination provision, the Social Security Administration will reduce the amount of your Social Security benefit.




About Author

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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