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FERS Supplement Update – Are You Eligible

Posted By Dennis Damp On In ANNUITIES / ELIGIBILITY,BENEFITS / INSURANCE,ESTATE PLANNING,FINANCE / TIP,RETIREMENT CONCERNS,SOCIAL SECURITY / MEDICARE,SURVIVOR INFORMATION | Comments Disabled
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There are many things to consider when determining your FERS retirement benefits [2]. If you meet certain requirements, you will receive a Special Retirement Supplement which is paid until you reach age 62. This supplement is similar to the Social Security benefit [3] earned while you were employed by the Federal government. However, since the formula for the Special Supplement assumes a working life of 40 years, each year of FERS service is worth one-fortieth of the estimated Social Security benefit. The FERS Supplement is often significantly less than the Social Security benefit you will receive at age 62. The supplement ends at age 62 even if you elect to wait to apply for Social Security benefits.

Request a  Federal Retirement Report™ [4]  today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections

Steps to Computing the Annuity Supplement

The FERS supplement provides a level of income before age 62 similar to what the retiree will receive at age 62 as part of a Social Security benefit, if eligible for Social Security at that age. The formula for calculating the supplement is complex and they use your complete creditable service earnings history to determine your benefit.

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You may be eligible for a Special Retirement Supplement if you retire:

If you transfer to the Federal Employees Retirement System (FERS) from the Civil Service Retirement System (CSRS), you must have at least one full calendar year of FERS-covered service to qualify for the supplement.

Retirees that have earnings from wages or self-employment that exceed the Social Security annual exempt amount ($17,640 in 2019) will see their Retirement Supplement either reduced or stopped.

You can request a Personalized 27-page Retirement Planning Report [7] that includes a summary of your retirement benefits and income sources including the Social Security Supplement payment if warranted. Their federal retirement specialists may be able to answer all of your questions and concerns.

Resources

Helpful Retirement Planning Tools / Resources

Disclaimer:Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment adviser. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

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