Annuity reduction

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Q. I retired in 2010 at age 53 after a 25-year career in a federal law enforcement position. I have obtained new employment in the private sector. In June 2013, I will reach my Federal Employees Retirement System minimum retirement age of 56. My estimated earnings during calendar year 2013 will be approximately $35,000. Is my special annuity supplement reduced/eliminated in June 2013 when I turn 56, or will the reduction/elimination become effective in 2014?

A. The test is based on earnings in the previous year and the reduction is applied in the following year. In your case, excess earnings in 2013 would result in the reduction or suspension of your special retirement supplement in 2014. The exact date of the change depends on when the Office of Personnel Management gets your annual earnings data from the Internal Revenue Service.

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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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