Q. I took a job last year. After reporting my earnings to OPM this year, I will not be receiving a FERS Social Security supplement in the future.
What happens to the money? Do I simply lose the funds? Does this increase my future Social Security payments?
A. The special retirement supplement operates like a Social Security benefit. If you have earnings from wages or self-employment that exceed the annual limit, your benefit is reduced — if the excess is small — or eliminated — if the excess is large enough. If your earnings in a following year fall below the limit, then the SRS is restored, as long as you haven’t reached age 62. That’s when the SRS ends and you become eligible for a regular Social Security benefit, which operates under the same rules until you reach full Social Security retirement age.