Q: Please explain what CSRS Offset is.
A: Civil Service Retirement System Offset employees are those who are covered by both CSRS and Social Security. In general, there are two categories of employees who are covered by CSRS Offset. First, those who had a break in service that exceeded one year and ended after 1983 and had at least five years of creditable service as of January 1, 1987. Second, employees who were hired before Jan. 1, 1984, acquired CSRS interim coverage between 1984 and 1987, and had at least five years of creditable civilian service by Jan. 1, 1987.
If a CSRS Offset employee retires before reaching age 62, at age 62 his annuity is reduced by the amount of Social Security benefit he earned while employed under CSRS Offset. If he retires at or after age 62, the offset occurs on the day he retires. Note: The reduction is automatic and occurs whether or not he applies for a Social Security benefit.