Earnings test for annuity?


Q. I am a Federal Employees Retirement System employee and plan to retire at my minimum retirement age (56), with 31 years of service (July 2016). It is my understanding that my retirement income would consist of three components: pension, Thrift Savings Plan annuity, and Social Security supplement, until age 62. I also know that the SSS is subject to the minimum earnings test. However, the pension portion of my retirement will not be subject to the minimum earnings test.

Will my TSP annuity be subject to the earnings test? If so, what options do I have to allow me to receive the SSS until age 62? Do I defer my TSP annuity until age 62? Is age 62 to 67 (my full retirement age) also subject a minimum earnings test?

A. The Social Security earnings test applies only to earnings from wages or self-employment, not to other sources of income, such as annuities.


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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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