Q. I am thinking about retiring at age 62 with 25 years of service in FERS. I would like to continue working with my current employer after retirement by getting rehired. I have heard that there may be a cap on the the amount of money I can earn after I am rehired. I have been told that my retirement plus my salary cannot be more that GS 15-10. Is there a cap on earnings? If so, what is that cap?
A. With rare exception, rehired annuitants have the salary of their new federal position offset by the amount of their annuity. The only cap that I’m aware of applies to earnings from wages or self employment that exceed the annual Social Security limit. If you exceed that limit, which is $14,160 in 2011, your Social Security benefit would be reduced or suspended until such time as your earnings fell below the limit.