If you transfer to FERS and you have at least 1 calendar year (January 1 to December 31) of FERS service when you retire, you will be eligible for the Special Retirement Supplement. The special retirement supplement (also known as the FERS supplement) is unique to FERS. It substitutes for the Social Security part of your total FERS benefit until age 62, when most people become eligible for Social Security. The purpose of the supplement is to provide a level of income before age 62 similar to what you will receive at age 62 as part of a Social Security benefit. The supplement stops at age 62 even if you are not eligible for Social Security. Like Social Security benefits, the supplement is subject to an earnings test, which means the supplement is reduced if your income from earnings or self-employment is higher than an allowable amount.
Eligibility Requirements
In addition to at least 1 full calendar year of FERS service, you must retire on an immediate annuity (that is, one that begins within 1 month of separation) under one of the following provisions to be eligible for the Special Retirement Supplement:
Individuals who retire on disability or under the MRA + 10 retirement provision cannot receive the supplement.
Common Questions and Answers on the FERS Supplement
No. In order to be eligible for the Special Retirement Supplement, you must have at least one full calendar year (January 1 - December 31) of service subject to FERS computation rules.
Yes. All CSRS Offset and FERS service are used in computing the special retirement supplement.
Yes. You will have met the age and service requirements for an immediate unreduced annuity - in this case, age 60 with 20 years of service. You also will have one full calendar year under FERS - 1999. Remember, however, that the Special Retirement Supplement is subject to an earnings offset, and if you earn too much after you retire, your Supplement may be reduced to zero.
Yes. You will have met the age and service requirements for immediate unreduced retirement as a law enforcement officer. You will also have 1 calendar year of service under FERS. Since you qualify for benefits under the special provisions for law enforcement officers, it is not necessary for you to meet the minimum retirement age applicable to other types of immediate retirement in order to be eligible for the Supplement. In addition, the Supplement will not be reduced by any outside earnings until you reach the minimum retirement age.
No. To be eligible for a Special Retirement Supplement, you must retire under a provision of the FERS law that does not require reduction for age.
No. You would not be eligible for the Special Retirement Supplement in either case. Postponing the start of your annuity will not change the provision of law under which you retired (the MRA + 10 provision). You must meet the minimum age requirement for an unreduced annuity at the time you retire to qualify for the Supplement.
No. The Special Supplement approximates the portion of an estimated Social Security benefit that you would earn during civilian service that is creditable toward the FERS portion of your annuity. 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.
Updated 24 July 1998