When it comes to your FERS Retirement you must consider the three major aspects of your income including your:
- FERS Annuity Pension
- Thrift Savings Plan, Social Security Benefits
- FERS Special Supplement.
Simplifying FERS Special Supplement
I would like to simplify the FERS Special Supplement for you. Also known as the Special Retirement Supplement or SRS, it is designed to help bridge the income gap. For those who retire before age 62, it will supplement your missing Social Security income, until a month before you reach age 62 and then stop. Since the SRS is not paid by Social Security, you do not have to start receiving benefits from Social Security at age 62. You may delay taking these benefits to help increase your future Social Security annuity.
We often hear can you start Social Security or FERS Special Supplement in the middle or end of year do to earning limits? (please see bottom of article for answer.) To be eligible, you must have a normal immediate retirement, not an early retirement (MRA+10). This means you must have 30 years of creditable service and meet your MRA. Or, you can have 20 years of creditable service and be age 60.
You may be eligible if:
- You retire voluntarily
- On an Immediate Annuity
- Annuity not reduced for age
You may still be eligible if you:
- Retire involuntarily before attaining MRA
- Because of a major reorganization
- Reduction in force
You are not eligible if:
- You receive a deferred annuity benefit
- Disability benefit
- Immediate MRA + 10 annuity benefit
You must be a FERS employee
You must retire on a full immediate retirement
You must have 25 years of creditable service under Special Provisions and be any age or have 20 years of creditable service under Special Provisions and be at least 50 years old. Even though you will be eligible for this benefit your FERS Special Supplement will not start until you reach your MRA.
This benefit will begin after the interim period of your retirement and typically takes two three months to start after you retire.
When it comes to your Social Security or FERS Special Supplement Benefits the first year you start these benefits there is a special Rule. The 2019 earning limit for 2019 is 17,640 annually or 1,470 a month of earned income everything over this amount you will result in $1 of their Social Security benefits withheld for every $2 in earned income in excess of $1,470 per month, or $17,640 per year. However, the special rule for the first year you start these benefits is a little different. Everything earned until the point you start drawing these benefits does not count towards the earnings limit for that year. At the point the benefit is started when this rule takes effect.
Still Confused? Schedule a FREE Retirement Analysis
When it comes to retirement and your Retirement benefits it can be down right daunting. Our specialist at GPIS can help you through the entire process. For more information on your benefits and how they work now and into retirement and the options that can potentially have a huge impact on your retirement, contact us today to schedule your free retirement analysis.