Do you know about the FERS supplement? An important retirement benefit plan for individuals who retire before the age of 62, it is also called the Special retirement supplement or SRS. Many individuals retiring before 62 are not aware of FERS benefits and thus couldn’t make a wise decision.
Special retirement supplement offers various benefits, such as it bridges the money gap if you retire before age 62 as you don’t receive social security until you reach age 62. But, not all federal employees are eligible for a special retirement supplement.
Who gets FERS special retirement benefits?
Federal workers younger than age 62 eligible for an unreduced federal employee retirement system are also eligible for temporary extra benefit, i.e., FERS annuity supplement. Firefighters, air traffic controllers, and law enforcement officers who retire under special provisions and FERS retirees who retire at age 60 with a minimum of 30 years of service are also eligible. If you are a firefighter planning your retirement, learn about FERS’s special supplement.
Rule for eligibility
1) If the employee has at least one calendar year of service at the time of retirement
2) Individuals retiring at or after reaching MRA with at least 30 years of service
3) individuals retiring at age 60 with at least 20 years of service
So, if you are eligible for FERS special retirement supplement, estimate it with the help of the below-mentioned formula.
How to estimate FERS special retirement supplement?
Get your annual social security statement handy to estimate your supplement amount. You also need to know how many years of creditable service you would have at the time of your retirement. Now, you can use the formula.
Years of creditable service/40 * your age 62 social security benefit = your estimated FERS supplement. Calculating FERS supplement benefits is an extremely time-consuming and complex task; take the help of a consultant from My Federal Retirement Help.
We are a team specialized in designing a comprehensive financial plan considering all aspects related to pre-retirement and retirement. We make integrated financial plans tailored to your specific goals and your family’s needs.
Reduction in FERS Supplement
FERS supplement is treated as social security income, so if you take the supplement before the full social security retirement age, your supplement can be subjected to taxes and reductions. Also, if you take a part-time job after retiring from federal service, your supplement may get reduced. Contact an expert to get more clarity on this.
My Federal Retirement Help is a team of planners and advisors who can help federal employees get into the next stage in their life by assisting them with a retirement plan, paperwork, and its submission to OPM.