FERS Offset?


Q. I am under FERS Offset. How does the FERS offset retirement works? Will I receive the same retirement benefits as CSRS?

A. There is no such thing as FERS Offset. You must be referring to CSRS Offset. If so, here’s how that works: If you retire before age 62, you’ll receive the same annuity as any other CSRS retiree with the same amount of service. However, at age 62, your CSRS annuity will be reduced by the amount of Social Security benefit you earned while a CSRS Offset employee.

The amount you receive will be the same; it will just come from two places: the Office of Personnel Management and the Social Security Administration. If you retire at or after age 62, the reduction will occur on the day you retire. Note: If you are offered an early retirement opportunity and do so before age 55, your CSRS annuity will be permanently reduced by 1/6 of one percent for every month you are under age 55.


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.

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