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Question about FERS early retirement
Old 10-11-2010, 05:08 PM   #1
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Question about FERS early retirement

Hi, I am looking for an answer about FERS retirements. Do FERS employees get a Supplemental along with the earned retirement? Example: Retirement is $1000/month , leaving early with 24-1/2yrs and 58-1/2yrs old. I was thinking that a Social Security Supplement should be around $1000/mo. So added together would make $2,000 a month in retirement. Then at Age 62 I will still draw the $1000/month from the USPS and $1000/month from SS.
Anyone out there know about this ? Am I correct with my thinking on this. Cannot get any info from USPS about the Supplemental even though it is mentioned in my forecasted early retirement papers? Email me or post the answers. Thanks
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Old 10-11-2010, 05:43 PM   #2
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I am a FERS retiree, but don't get a supplement. Most do, though, so I think you probably would. I am not exactly sure about the rules, except that under MRA+10 I dont' qualify for one (plus, I was nearly 62 when I retired anyway so it wouldn't have been much help to me).

As a federal employee, you probably know how incredibly complex our federal retirement is and it is important to get the right information. I got my information from retirement seminars provided by my agency. Perhaps other here will have more information for you. Further information is also available directly from federal retirees on the message board at www.federalsoup.com , and then there is always www.opm.gov .
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Old 10-11-2010, 09:00 PM   #3
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Former FERS employee here, but not USPS.

You really need to find out where your servicing Personnel Office is, if it is not located near you. Try the USPS website first and see if there is a place for Employees Only.

Wish I could help more, but I was with a totally different agency.
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Old 10-11-2010, 09:03 PM   #4
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Here's some info from OPM:

FERS Annuity Supplement
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Old 10-12-2010, 09:35 PM   #5
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If you retire at the normal retirement age of 62 or later, you're eligible for the supplement. If you retire early before age 62 (i.e., MRA+10), you would be eligible for your normal pension (annuity), but no supplement.
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Old 10-12-2010, 10:16 PM   #6
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from the site

If you retire voluntarily on an immediate annuity which is not reduced for age, you may be eligible for the annuity supplement, in addition to your regular monthly FERS benefit.

DW can retire at 60 without any reduction for age. She would get the supplement to age 62

It stops at 62 in any case.
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Old 10-12-2010, 10:18 PM   #7
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Originally Posted by clintonmotor View Post
Hi, I am looking for an answer about FERS retirements. Do FERS employees get a Supplemental along with the earned retirement? Example: Retirement is $1000/month , leaving early with 24-1/2yrs and 58-1/2yrs old. I was thinking that a Social Security Supplement should be around $1000/mo. So added together would make $2,000 a month in retirement. Then at Age 62 I will still draw the $1000/month from the USPS and $1000/month from SS.
Anyone out there know about this ? Am I correct with my thinking on this. Cannot get any info from USPS about the Supplemental even though it is mentioned in my forecasted early retirement papers? Email me or post the answers. Thanks
The supplement stops at 62 when you can draw social security

Eligibility for the annuity supplement continues until the earlier of:
  • The last day of the month before the first month for which you would be entitled to actual social security benefits, or
  • The last day of the month in which you reach age 62.
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Old 10-12-2010, 11:00 PM   #8
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Quote:
Originally Posted by Richard8655 View Post
If you retire at the normal retirement age of 62 or later, you're eligible for the supplement. If you retire early before age 62 (i.e., MRA+10), you would be eligible for your normal pension (annuity), but no supplement.
This is the opposite of the correct answer, which was posted by Emeritus. As to the amount, you will have to ask your local HR office, though the final numbers will come from OPM. The USPS FERS progam is exactly the same as the one for non-USPS federal employees.
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Old 10-13-2010, 01:39 AM   #9
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For me it will work like this.....although I am FERS, but as a school teacher working for Dept. of Defense. If they offer VERA this school year I plan to take it. I will be 54 in July.
1. Immediate pension with no penalty. But also no COLA changes until I hit 62
2. At 56 I would get the supplement until I hit 62. They say in the paperwork that will be about 2/3 of what my SS would be. After talking to others who have taken it, looks like it might be closer to 1/2. They are good at not telling you HOW they make the exact calculation.

For me my take home on the pension after taxes/spousal reduction should be about $1100-1200 a month, supplement hopefully around $800. For us this pays all of our living expenses, other money will have to come from savings/funds. For us it is a good fit.
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Old 10-13-2010, 07:30 AM   #10
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For me it will work like this.....although I am FERS, but as a school teacher working for Dept. of Defense. If they offer VERA this school year I plan to take it. I will be 54 in July.
1. Immediate pension with no penalty. But also no COLA changes until I hit 62
2. At 56 I would get the supplement until I hit 62. They say in the paperwork that will be about 2/3 of what my SS would be. After talking to others who have taken it, looks like it might be closer to 1/2. They are good at not telling you HOW they make the exact calculation.

For me my take home on the pension after taxes/spousal reduction should be about $1100-1200 a month, supplement hopefully around $800. For us this pays all of our living expenses, other money will have to come from savings/funds. For us it is a good fit.
On the calculation IIRC its not a fraction of the SS benefit at age 62 its a fraction of the SS Benefit at age 62 that was earned by your federal employment

DW is in the same position. At age 60 she could take unreduced fers retirement with 28 years service. But her SS includes 8 years of non fers work. Those years get excluded.

OPM first estimates what your full career (40 years) social security benefit would be. Then we calculate the amount of your civilian service under FERS and reduce the estimated full career social security benefit accordingly. For example, if your estimated full career social security benefit would be $1,000 and you had worked 30 years under FERS, we would divide 30 by 40 (.75) and multiply ($1,000 x .75 = $750). The result would be your FERS annuity supplement, prior to any reductions.
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Old 10-13-2010, 07:59 AM   #11
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My problem is not with them using the FERS years for the supplement calculation.....it's if you are not happy with their calculation it's hard to complain because they don't tell you how they came to their amount (or so I am told....which means I could be wrong about this.....as I often am on many different subjects....). Hopefully I will be getting the chance to find out in a couple of years.
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Old 10-13-2010, 08:03 AM   #12
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Oh, I do understand the calc. you used above. From what I have heard from other DoDDS teachers who have retired is when they get whatever they get.....it seems to be a done deal they say even if they don't agree with it. I won't be retiring with a full year (about 27.8 I think).... sure would be nice if when they calculate it they show their work (damn, more math creeping in....been at school too long....and I teach PE).
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Old 03-01-2011, 07:18 PM   #13
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I am a USPS retiree, starting January 1, 2009 - having attained the age of 55 with 25 years of service. I began receiving the social security supplement in April 2009 and have received it now for 2 years and 2 months. Not sure why but this month I only received the annuity from the USPS, and my deposit information shows the annuity deposited but NOT the supplement. Anyone ever have this problem? I did send an e-mail to OPM today for an answer, but if anyone can give me a heads-up on what "might" have happened I would appreciate it. Thanks
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