FERS Supplement Explained: Your Social Security Bridge
Understand the FERS Special Retirement Supplement - the monthly payment that bridges the gap between federal retirement and Social Security.
Key Takeaways
- 1FERS Supplement bridges gap between early retirement and Social Security at 62
- 2Only immediate retirees (MRA+30 or 60+20) qualify
- 3Approximates Social Security benefit earned during federal service
- 4Ends at age 62 regardless of when you claim Social Security
- 5Subject to earnings test if you work after retiring
What Is the FERS Supplement?
The FERS Special Retirement Supplement (SRS) is a monthly benefit for federal employees who retire before age 62 - before they can collect Social Security.
- Paid monthly along with your FERS annuity
- Designed to approximate your Social Security benefit
- Only covers the portion of SS earned during federal service
- Provides income until you reach Social Security eligibility
- Part of the three-legged FERS stool (pension, SS, TSP)
Why It Exists
FERS was designed around receiving Social Security at 62. The Supplement ensures early retirees still have three income sources until they can actually claim SS.
Who Qualifies for the FERS Supplement?
Not all FERS retirees receive the supplement. Your eligibility depends on how you retire.
| Retirement Type | Eligible for Supplement? |
|---|---|
| MRA + 30 years of service | Yes |
| Age 60 + 20 years of service | Yes |
| Age 62 + 5 years | No (already SS eligible) |
| MRA + 10 years (reduced) | No |
| Disability retirement | No |
| Deferred retirement | No |
| VERA with 20+ years | Yes |
MRA+10 Does Not Qualify
If you retire under MRA+10 (reduced retirement), you do NOT receive the FERS Supplement. Only unreduced immediate retirees qualify.
How the FERS Supplement Is Calculated
The supplement approximates what you would receive from Social Security at age 62, prorated for your federal service.
- **Basic Formula**: SS benefit at 62 x (FERS years / 40)
- Uses your estimated Social Security benefit at exactly age 62
- Only your federal service years count in the calculation
- 40 years represents a "full career" for this calculation
- OPM calculates this based on Social Security Administration data
Calculation Example
Your estimated SS at 62 is $2,400/month. You have 25 years of FERS service. Supplement = $2,400 x (25/40) = $1,500/month until age 62.
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The Earnings Test
If you work after retiring but before 62, your FERS Supplement may be reduced based on your earnings.
- Uses same earnings test as Social Security
- 2024 exempt amount: $22,320 per year
- Supplement reduced $1 for every $2 earned above the limit
- Only earned income counts (wages, self-employment)
- Investment income, pensions, and annuities do not count
- Test applies only until you turn 62
Plan Your Post-Retirement Work
If you plan to work after retiring, calculate how much you can earn before your supplement is reduced. Staying under the limit preserves your full supplement.
Planning Around the FERS Supplement
Smart planning helps you maximize this valuable benefit.
- 1Get your Social Security estimate from ssa.gov
- 2Calculate your approximate supplement before retiring
- 3Factor supplement into your early retirement budget
- 4Plan any post-retirement work around the earnings limit
- 5Remember: supplement ends at 62 regardless of SS claiming
- 6Decide when to claim Social Security (62, full retirement age, or 70)
- 7The supplement does NOT receive COLA - budget for inflation
Planning Beyond the Supplement
The FERS Supplement is temporary - it ends at 62. Strong financial planning ensures smooth transition and continued retirement security.
- Supplement ends at 62 whether or not you claim SS
- No COLA on supplement - purchasing power erodes
- TSP and other savings provide flexibility
- Consider partial TSP rollover to Gold IRA
- Gold provides inflation protection supplement lacks
- Augusta Precious Metals helps with TSP-to-Gold rollovers
Frequently Asked Questions
1Does the FERS Supplement receive cost-of-living adjustments?
No, the FERS Supplement does not receive COLA. It stays the same amount from when you retire until it ends at age 62.
2What happens to my supplement at age 62?
The FERS Supplement automatically stops at age 62. You then need to decide when to claim Social Security (62, full retirement age, or 70). Waiting to claim SS increases your monthly benefit.
3Can I get the supplement if I have a private sector work history?
Your private sector work contributes to your overall Social Security estimate, but only your federal service years factor into the supplement calculation formula.
4Is the FERS Supplement taxable?
Yes, the FERS Supplement is taxable income, just like your FERS annuity. Federal and state income taxes apply.
5What if I retire at 61? Do I get the supplement for only one year?
Yes, you would receive the supplement until you turn 62. If you retire at 61, you get approximately one year of supplement payments before it ends.
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