Q. I am retiring at age 60 on Sept. 30. I have more than 22 years in and I meet the criteria for the special retirement supplement. I turned 60 in early June and have received my estimate with the supplement. I have volunteered for retirement with a buyout. I asked my retirement specialist about the earnings limit and he gave the example here: www.govexec.com/pay-benefits/retirement-planning/2013/01/little-extra-under-fers/60735/
If I prorate the earnings limit for the remainder of this year, that would be about $1,250 a month for three months for a total of $3,750. Let’s say I stay within that limit for the remainder of 2013, which is not reported until Sept. 18, 2014, so no reduction in the supplement. But at some time during 2014, I go over the limit and in 2015, I also go over the limit. I turn 62 in June 2015, but I don’t get the RI-92-99 Earnings Report for 2014 until Sept. 18, 2015. Will I be in a position to owe the government the overpaid supplement because there is no supplement left to reduce?
A. Yes.
