CSRS Offset and calculating Social Security


Q. I’m a CSRS Offset employee, 12½ years offset, 18½ years CSRS, and I have enough quarters earned for Social Security prior to entering federal service. I know that my benefits will be reduced by windfall elimination provision. Is there a maximum amount by which it can be reduced?

Also, I know my CSRS pension will be reduced by the amount earned during my offset years. I know you divide the number of offset years by 40 and use this percentage to multiply against the amount earned during the offset years. But no one in Social Security, or anywhere else, can tell me how I get that figure. I have the figure before and after WEP is applied.

A. Yes, there is a limit to how much your Social Security benefit can be reduced by the WEP. For an explanation, go to www.socialsecurity.gov/pubs/10045.html. To determine what the reduction would be, use the Social Security Administration’s estimator at www.socialsecurity.gov/planners.

To get your Social Security statement, call the Social Security Administration at 800-772-1231, or download a copy at www.ssa.gov. You can plug that figure into this formula and estimate what the offset would be to your CSRS annuity: Social Security estimate at age 62 x your years of CSRS Offset rounded up to the next higher year ÷ 40.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

Leave A Reply