Q. I retired from the government Nov. 30, 2011, as a GS-13, age 56 with 30 years of service. I started a new job where my earnings will exceed my previous salary as a fed. I have been receiving partial annuity payments as expected, but the Office of Personnel Management just sent FERS supplement payments for Dec. 11 to March 12. Will I have to repay the supplement for January to March 2012, because my earnings in 2012 have already exceeded the $14,000 maximum additional income limit? The rules I have read talk about calculating the supplement based on earnings “the year” after you retire. Does this mean calendar year or 12-month period?
A. According to OPM, “OPM discovers [income that exceeds the annual earnings limit]through the annual annuity supplement survey. If the annuitant exceeds the limit for the previous year, the supplement is reduced $1 for every $2 by which it is exceeded. If the annuitant earned a large enough sum of money, this reduction may be down to $0 so that no supplement is payable.”