CSRS Offset

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Q. I was a CSRS Offset employee who retired at age 55. Since then, I’ve been working in the private sector. I’ll soon turn 62 and plan on continuing to work and not applying for a Social Security benefit until I retire again. When will my CSRS Offset annuity be reduced?

A. When you turn 62, it will be automatically reduced by the amount of Social Security benefit you earned while covered by CSRS Offset.

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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.

11 Comments

  1. Good morning Reg, I am currently OWCP disabled and retired. I am civil service offset with 37 years of service. I will be 62 in February 28, 2020. will my civil service retirement start as soon as I am 62? Can I cashout my entire civil service pension? If I take the civil service retirement annuity will i still receive social security? Thank you John Hagan. John.Hagan21@yahoo.com.

    • There is no time limit on your OWCP coverage. It can last as long as you are disabled. Since you are retired, you cannot receive a refund of your retirement contributions.

  2. I am currently receiving my Civil Service Retirement System Offset Benefit and I am currently age 59. I realize that at age 62 my Civil Service Retirement System Offset Benefit will be reduced by my Social Security benefit at age 62. I realize that my Civil Service Retirement System Offset Benefit will be reduced by my Social Security benefit at age 62 even if I decide to delay taking my Social Security benefit. My question is if I delay taking my Social Security benefit until age 70, will my Civil Service Retirement System Offset Benefit be recalculated to what I am receiving from Social Security age 70. In otherwords, my Social Security Benefit at age 62 will be $1,382.00 and therefore my Civil Service Retirement System Offset Benefit will be reduced by $1,382.00. If I wait until age 70, my my Social Security Benefit will be $1,962.00. Will my Civil Service Retirement System Offset Benefit be reduced by the $1,962.00, or will it continue to be reduced by $1,382.00.

    • At age 62, your annuity will be reduced by the amount of Social Security benefit you earned while a CSRS Offset employee. That reduction is permanent, and won’t be affected if you engage in other Social Security-covered employment. When you do claim that Social Security benefit, it will be based on all your years of Social Security-covered employment.

  3. I retired effective 11/2/2021 until now I haven’ t receive my retirement package, OPM will send to the retiree or to my agency? How long it will take? Thanks

    • If your agency meets the processing standards set by OPM, your retirement application will move through your agency’s personnel and payroll offices in 30 days or less. However, staffing shortages in your agency personnel and payroll offices (or a backlog of retirement applications) may cause that deadline to slip.

      Once OPM gets your retirement package, it will send you a written acknowledgment that includes your retirement claim number, preceded by the letters CSA. If OPM is satisfied that you meet the age and service requirements to retire, it will authorize interim annuity payments. OPM tries to authorize interim payments within 10 days after it receives your retirement package. If everything works smoothly, you’ll receive your first interim payment within three to four weeks after you retire. If it doesn’t, it will take longer.

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