CSRS Offset, Social Security and WEP


Q. I am 69 years old and will be 70 in December of this year. I was rehired by the government in January 2013 after a 31 year break in service. I had almost 12 years of prior service and I withdrew my CSRS retirement fund when I left the government in 1981. I am now planning to retire at the end of March of 2016 when my High-3 will be reestablished at my current GS12-10 salary. Since I have over 30 (consecutive) years of substantial earnings under Social Security, will the windfall elimination provision come into play when I retire?

Also, I did not repay the amount I withdrew in 1981, and additionally, I am currently collecting my Social Security benefit and have been since 2010. How will these circumstances effect my CSRS retirement and/or Social Security benefit when I finally retire at the date I mentioned?

A. Because you got a refund of your CSRS contributions before March 1, 1991, you can either redeposit that money or have your annuity actuarially reduced by the amount you owe plus accrued interest. Either way, you’ll get credit for that time in determining your years of service. Because you have already reached full Social Security retirement age, you can continue to receive your full earned Social Security benefit while working. However, because you are currently covered by CSRS Offset (CSRS and Social Security), when you retire, your CSRS annuity will be reduced by the amount of Social Security benefit you earned while a CSRS Offset employee.


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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