Q. I am 58 years old, and I have a service date of 1975. I am under the Civil Service Retirement System. I recently retired from the military after 33 years of reserve service (no active duty service over 90 consecutive days). My reserve pay was subject to Social Security withholding. What impact will my military reserve retirement pay have on my CSRS annuity? Will my CSRS or military retirement be subject to a reduction, or do I have to redeposit money? How do I determine whether I have to redeposit any money? Do I still get to Social Security at age 62, or is that lost due to CSRS?
A. Your reserve retired pay won’t be affected. However, if you have been given credit for those periods of active-duty service in your CSRS annuity computation and haven’t made a deposit to the retirement system, your annuity would be reduced at age 62 when you become eligible for a Social Security benefit. That time would be subtracted from your total service and your annuity recomputed.
Because you will be receiving an annuity from a retirement system where you didn’t pay Social Security taxes, your Social Security benefit would be subject to the windfall elimination provision. The WEP reduces that benefit if you have fewer than 30 years of substantial earnings under Social Security.