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• 87108
  

  Tammy, I attended a retirement seminar where you were a speaker. I can not find in any of the handouts an answer to my questions below. Please provide your answers ASAP, as I need to make the decision in the next week whether to take the buyout or work another year. Question 1: I will retired at age 59 under VERA/VISP. I have 23 years of service and have been under FERS since 1986. Will I start getting the FERS annuity supplement at my retirement? Question 2: Will I be able to draw from my TSP without a penalty (under 59 1/2 years)?

  Thank you, Betty

  Betty Dickerson Posted September 19, 2009 3:24 PM
• 64830
  

  under FERs, what agency is not considered for the supplement.

  Linda harris Posted December 11, 2008 2:36 PM
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  What is the annual earnings limit for Social Security for 2009? The earnings limit for 2007 was$12,960.

  John Posted November 26, 2008 3:14 PM
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  I am a retired law enforcement officer with a local government receiving a pension. Prior to this I was employed by the Federal Government unders the CSRS with 9 years of service. I left the Govt. in 1986 and had my retirement contrabutions refunded to me. In addition to the nine years I also have 3 years of military time.This would give me approx. 12 years of Federal time. Question number 1. I will be returning to Federal service by next month what system should I elect,the old CSRS , CSRS supp. or Fers? I have no problem putting my money back into the old system. Question 2. I have met all of my social security quaters and have maxed out,how does this effect my retirement if I stay in the Govermnet for 8 more years giving me a total of 20 years federal service.I have heard something about the social security supplement but not sure about how it works.I need some advice. Many Thanks

  Pat Posted July 2, 2008 11:31 PM
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  How does selling back leave effect the FERS supplement? Will it count as income againist the supplement?

  Phil Lewis Posted May 22, 2008 4:09 PM
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  Being that it is never too early to plan for retirement...I have aquestion. I am currently 43 and plan to retire in 2012. I will have met my MRA. I started under FERS in 1992. And I had 8 and a half years that I paid in for the post 56 deposit. This will mean that I will have approximately 37 years of federal service. My questions conerns the SSI supplement. For planning purpose, how would I calculate the amount I would receive at age 56? My current statement from the SSA shows that at age 62 I would be entititled to a reduced rate of about $2000 a month. Using formulas that I have scene for the supplement, would my supplemental amount be $1450 a month (29/40 x $2000)? And how does my retirement from FERS, TSP and personal investments from stocks and bonds figure into the SS Supplement? Thanks.

  Gregory Collins Posted April 10, 2008 12:21 PM
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  I retired at age 51 under VERA. I had 29 years of service and had been under FERS since 1984. Will I start getting the supplement at my minimum retirement age (55 years 10 months)?

  Dwight Weidman Posted January 9, 2008 9:57 AM
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  No, Luba, withdrawals from TSP do not affect the supplement. Money from TSP is investment income (similar to dividends from stocks or interest from bonds and savings accounts) not earned income (wages, etc.).

  As for your question about "annual," I assume you are referring to the check you receive for accumulated lump sum annual leave. This money is counted as earnings that would impact the supplement, but it is counted in the year when it was earned, not when you receive it, so it shouldn't affect your supplement. For example, if you retired on December 31, 2007, but you receive your annual leave payment in January 2008, the earnings count toward your 2007 income not 2008 for purposes of determining your earnings limit for 2008. (The money would of course, count toward 2008 as far as income taxes are concerned.)

  I hope that clarifies the matter for you.

  Scott (former benefits officer) Posted January 7, 2008 8:08 AM
• 40761
  

  Does the amount you receive from Thrift savings offset the Supplement? Does income from thrift savings count as earned income and will it be subtracted from the supplement amount? Also,what about the money received for annual? Is it counted as earned income? I would appreciate an explanation on this. Thank you.

  Luba Posted January 4, 2008 10:26 AM
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  As federal LEO we pay a higher SS tax rate than other workers. This factors into our supplement.

  Greg Sinclair Posted December 29, 2007 10:12 AM
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  It would help greatly if FERS Supplement wasn't under the SS income limit. I could retire and get another job, but being limited on the amount I could earn, I will just stay with my current job a few more years.

  Phil Lewis Posted November 26, 2007 11:20 AM
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  How does this apply (if at all) to those taking the VERA that are under the MRA?

  Alan K. Bridgewater Posted October 19, 2007 7:18 AM
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  Could you please clarify how the supplement is reduced based on the annual earnings limit? For example, if someone works 30 years, is entitled to a SS benefit of 1,500/month at age 62, and has annual retirement earnings of 75,000, how would you calculate the reduction in supplement?

  Jim Posted July 10, 2007 4:42 PM
• 21404
  

  If I retire after 24 years in FERS, at age 60, this means I'll get the supplemental amount until I turn age 62? Right? I plan to start collecting Social Security at age 62. I had already earned more than 40 quarters toward Social Security before I ever worked for the government. I have also earned many more additional quarters above the 40 while working for the government. I do feel I have earned the right to collect the Supplement, as I've been paying into Social Security for over 35 years. Thanks.

  Joy N. Posted February 27, 2007 4:31 PM
• 21245
  

  Thank you, Tammy, for that explanation. If I may be so bold as to paraphrase your statements: The supplement was an enticement for the governmental employees to switch from a generous program to one perceived as less generous, so they could still afford to retire at a relatively early age.

  As always I never relish losing any "ground" or benefits; even so, the devil's advocate in me turns its critical eye to this benefit from a managerial (or even a tax payer's) viewpoint.

  I wonder:

  1. How much does this supplement cost every year? 2. How is this supplement funded? (It seems no one is paying for this other than the tax payer.) 3. How much has this incentive contributed to the looming retirement crisis?

  I really do not wish anyone to lose this benefit, but it does seem to be counter to the current need.

  With apologies,

  Tip off

  GovExec.com reader Posted February 20, 2007 8:51 AM
• 21209
  

  The reasons for the supplement include:

  1. In order for an employee covered by FERS to "retire" at the minimum retirement age (55 - 57), they would need to compensate for being too young for Social Security retirement.

  2. The retirement age for CSRS is 55 with 30 years. In order for FERS to offer a similar age for retirement, the supplement was necessary to complete the 3-part package of FERS (TSP, Social Security, Basic Benefit).

  3. Those who return to work after they retire under FERS will have the supplement reduced or eliminated by outside earned income.

  4. Having an excellent retirement benefits package has always been a big recruiting tool to attract qualified employees to federal service - FERS had to compete with the generous retirement benefits of CSRS to continue the tradition of offering comfortable retirement benefits.

  Tammy Flanagan Posted February 16, 2007 5:01 PM
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  Well David, let me tell you why it bothers me. First, you had the opportunity for a 20-year career in the military, so don't cry now that you have to work longer for a retirement. The minimum age for drawing social security is 62. Many older people don't live that long after 62. Federal employees on the average get better retirement benefits than the military and give up less for it .

  Why should federal retirees under FERS be supplemented? I could see it if they have a disability, but lets don't forget that federal agencies do whatever is in their power to keep military retirees and other vets from being employed among their midst. OPM has had a scam one way or another going on for years against vets but make every effort to make it look like they work hard to employ our vets.

  Charlie Posted February 9, 2007 7:33 PM
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  Wow, I should never have read "Charlie's" response. I figure mine may now ruffle a few feathers.

  I don't like losing ground or benefits any more than anyone else but with a retirement crisis looming (both federal and non-federal) and the administration and Social Security both encouraging everyone to work as long as they can, just what is the reasoning behind this supplemental support? This has got to cost the government millions of dollars per annum at the same time they want folks to stay.

  No, I'm not entitled to it while others I work with are, but that is not why I ask. There just seems to be no logic; to the point of being counter productive from a managerial aspect. The only plausible reason I can think of is that, perhaps at the time of implementation, there may have been a push to get the "turnover" cycle to occur at an earlier time in the average civil servant's career. Evidently it didn't work.

  Now, with NSPS looming, I know a number of folks just champing at the bit to be "off and running" and this program just enables them more.

  Tip off

  GovExec.com reader Posted February 7, 2007 9:36 AM
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  Tammy,
  I don't understand. Why aren't military years applicable as counting if you have already paid back into your retirement fund for those said years? What's the difference?

  And to Charlie...Why are you always so negative about anything and everything that may be important to the majority of the people? Did you by chance get left out of this perk as well? You say "Military retirees who retire at an early age don't get "supplements" until they reach retirement age". Last I remember, if you retire from the military you begin to receive retirement benefits immediately and can opt go onto a second career and bank up another retirement. Unlike civil servants, we can't collect squat until we are too old or disabled to properly enjoy it.

  David Posted February 6, 2007 10:25 PM
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  This whole thing is nothing but a freebie anyway and costly to the American taxpayer. Why should FERS people get special supplements from the government for retiring early? Military retirees who retire at an early age don't get "supplements" until they reach retirement age. This is a crock. This is nothing but a secondary retirement check.

  Charlie Posted February 3, 2007 12:49 PM
• 20929
  

  Can you explain CSRS Offset Retirement benefits; there has been no real guidance to staff regarding how this works. Does this FERS offset apply to CSRS Offset candidates?

  Karen Merrill Posted February 2, 2007 8:05 AM
• 20908
  

  Does the source of these funds come from thrift savings? If not, where. Also, in figuring how much the supplement will be, when excluding military service, does this mean military service that was bought back for retirement purposes or something else? Thank you.

  GovExec.com reader Posted February 1, 2007 10:50 AM
• 20851
  

  Here is the definition of what "earnings" are that will count against receiving the supplement (as well as Social Security between age 62 and your full retirement age):

  If you work for someone else, only your wages count toward Social Security's earnings limits. If you are self-employed, we count only your net earnings from self-employment. We do not count income such as other government benefits, investment earnings, interest, pensions, annuities and capital gains.

  If you work for wages, income counts when it is earned, not when it is paid. If you have income that you earned in one year, but the payment was made in the following year, it should not be counted as earnings for the year you receive it. Some examples are accumulated sick or vacation pay and bonuses.

  If you are self-employed, income counts when you receive it - not when you earn it - unless it is paid in a year after you become entitled to Social Security and earned before you became entitled.

  Tammy Flanagan Posted January 28, 2007 12:52 PM
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  Contracting Officer, if you are a LEO and retire at 48 with 25 yrs of 6c coverage, your social security supplement will not be reduced for earned income until you reach "MRA". (between 55 -57). So... 48-57 earn all you want. 57-62 it will be reduced for earnings that exceed the cap. Tammy, please post if I am not correct on this. I also believe that the supplement is reduced in the following year of the excess earnings. Not sure on this one though.

  GovExec.com reader Posted January 27, 2007 10:44 PM
• 20844
  

  What I find interesting that under FERS we are eligible for the supplement before age 62 at a rate of what we would received from Social Security at age 62, then why are we cut almost 50% by the GOV, and do not receive are full entitlement under Social Security, if we have paid in full all our quarters and more.

  I guess another reason why CSRS is better; at least they get everything that is coming to them. (no hidden fees).

  GovExec.com reader Posted January 27, 2007 2:10 PM
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  For the Law Enforcement Officers, Air Traffic Controllers and Fire Fighters... you are eligible for the supplement immediately upon retirement. You will not be subject to an earnings limit until you reach the FERS minimum retirement age.

  You have to read the article carefully, but I do mention Law Enforcement officers (and other "special groups" in the article:

  Those eligible to receive the supplement immediately upon retirement: (other groups of employees also are eligible for the supplement under various special provisions.)

  The reduction for excess earnings does not apply to employees who retire under the special provisions for law enforcement officers, firefighters, air traffic controllers and military reserve technicians until they reach the minimum retirement age.

  Also... The "earnings" limit refers to "earned income" such as wages, salaries, self employment. Unearned income, like investment income, retirements, annuities, and rental property does not count against this limit. It is the same definition as is used by Social Security.

  Tammy Flanagan Posted January 26, 2007 5:45 PM
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  I don't understand the 2007 earnings limit of $12,960. What earnings does this represent?

  GovExec.com reader Posted January 26, 2007 10:31 AM
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  How do law enforcement retirement provisions interact with this? I'd like to consider retiring at 48 with 25 cover years of law enforcement. Will I get the supplement; will it be earnings tested; when will it end, etc.?

  Please don't forget when discussing the retirement subject that there are us LEO's out here.

  GovExec.com reader Posted January 26, 2007 6:58 AM