The special retirement supplement plan of the Federal Employee Retirement System was designed to bridge the gap between when you become qualified for social security benefits and when you retire. The SRS is based on the service years of FERS. It does not include another Social Security covered job or any armed force service. The SRS is funded out of the Office of Personnel Management’s Civil Service Disability and Retirement fund.
To be eligible for FERS special retirement supplement, you must be under 62 age, eligible for instant annuity, retire at Minimum Retirement Age with a minimum of 30 service years. At the age of 60, you are also eligible for SRS with a minimum of 20 service years.
If you are a “Special Provisions” employee such as an air traffic controller, firefighter, law enforcement officer, your eligibility criteria for FERS special retirement supplement would differ. It is payable at the age of 50 with 20 service years.
People who are not eligible for the SRS benefit are:
- Disability retirees.
- Anyone who is retiring under the MRA+10 provision.
- Anyone who quits government and later appeals for a deferred annuity.
- Anyone who is retiring at 62 or later.
For a deep knowledge of the FERS and the SRS, you can always take the assistance of a federal retirement planning consultant.
Things To Know About The SRS
If you want to retire with the FERS special retirement supplement, you should consider all its factors. Often, people take the help of a federal retirement planning consultant to understand its benefits, its calculation, and checklist.
- The SRS does not have any impact on your Social Security benefit. While you are receiving the benefit of FERS special retirement supplement, you won’t be working and spending FICA tax on salaries; you might calculate your Social Security benefit considering the year you would retire. You can take the assistance of a federal retirement planning consultant. The estimate you receive from Social security would reflect your earnings if you worked to 62 or 70 age.
- If you have started working the next day of your federal retirement and receive your special retirement supplement, you don’t need to worry. You are entitled to this benefit and won’t require to report your earnings until next year. The earnings you will get after your retirement would be compared to the Social Security limit for that year. Your monthly annuity supplement would be reduced by 1/12 yearly extra earning.
- If you have retired in the year 2020 or earlier or have entered your MRA as a FERS retiree, then you may have got the Annuity Supplement Earning Report. Don’t forget to fill out that form and submit it before the deadline, usually May 15. If after retirement in 2020.
- If you stop working before you reach the age of 62, your supplement can be redeemed. The amount of time that an individual has worked throughout the year is not a variable factor while calculating the eligibility of the FERS Social Security Supplement. The variable factor is the annuitant received in work earnings within the tax year. If the countable earning that you may have received exceeds the earning limit for a similar tax year, then your request for reinstatement for the following tax year might be declined.
- Suppose you only report the income division without any justification and pay records. In that case, OPM will look at the number of earnings reported in your Social Security earnings file, which will reflect the money you received for the entire year and not just from your MRA date onward. That will likely cause your supplement to be adjusted downwards, and it will take considerable effort to get the issue resolved.
The FERS Special Retirement Plan calculation
Your FERS Special Retirement Plan benefit can’t be accurately calculated until you retire. However, to get a rough idea of the same, with a simple formula.
Step 1) Estimate your Social Security benefit at the age of 62.
Step 2) Multiply it with your total years of service under FERS
Step 3) Divide the product by 40.
If you want to calculate your FERS Special Retirement Plan with the highest accuracy so that you can plan your retirement, you should contact a federal retirement planning consultant.