CSRS Offset


Q. I plan to retire in 2½ years on Dec 31, 2014 (at age 60) from federal civil service under CSRS Offset with 33 years of service. I am contemplating working a part-time job, nonfederal employment, but wondered if I will have my annuity reduced due to additional earnings. Also, is there a maximum dollar amount I am allowed to earn annually beyond what I am paid in my retirement annuity before my retirement is reduced?  FYI, I worked four years federal service with an interim break of about five years before re-entering federal service for what will be 27 years by the time I plan to retire.

A. Until you reach age 62, you can earn as much as you want from outside employment without affecting your CSRS annuity. At age 62, your annuity will be reduced by the amount of Social Security benefit you earned while a CSRS Offset employee. If you apply for a Social Security benefit, you will be subject to the Social Security earnings limit. Because you will be under full Social Security retirement age, your Social Security benefit would be reduced by $1 for every $2 you earn above the annual earnings limit ($14,640 in 2012). In the year you reach your full retirement age, the reduction would be $1 for every $3 above a different limit ($38,880 in 2012). There isn’t any limit beginning in the month you reach full retirement age.


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

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