Q: I retired on May 31 at age 57. I have 22 years of law enforcement service with the Bureau of Prisons. I have just taken another job and realize I will lose about $12,000 a year because of the means test for the supplemental. A friend told me I will lose the supplemental forever once I exceed the limits. I want to retire from this non-government job in two years. Can I collect the supplemental for the last three years until I become eligible for Social Security at age 62?
A: Your friend is misinformed. While it’s true that your special retirement supplement will be reduced or suspended if you exceed the Social Security earnings limit, which is currently $14,160, if your earnings from wages or self employment fall below that level, the SRS will be restored. FYI, the earnings limit also applies to your Social Security benefit once you reach age 62 and the SRS stops.