Many federal employees don’t have a clear understanding of the FERS Special Retirement Supplement (SRS). In simple terms, if you’re eligible for an immediate FERS annuity and retire before age 62, the FERS SRS helps bridge the income gap until you reach 62 — the age when you first qualify for Social Security. Before making any decisions, it’s crucial to know how it works.
How the FERS SRS Works
Imagine you retire at 60 with 20 years of service and qualify for an immediate annuity. Although you’ve earned Social Security benefits, you can’t claim them until age 62. In this case, starting at 60, you’d receive the FERS SRS for two years. The FERS SRS is calculated as if you had retired at 62 and applied for Social Security immediately.
How the OPM Calculates Your FERS SRS
The Office of Personnel Management (OPM) estimates what your Social Security benefit would be at your Full Retirement Age (FRA) according to Social Security guidelines. They then adjust this amount based on your years of service under FERS, excluding any years spent in active military duty—even if you made a deposit for credit. Although the FERS Supplement is issued by the OPM, it’s subject to a Social Security Earnings Test if you continue working while receiving it. Additionally, the FERS SRS isn’t eligible for Cost of Living Adjustments (COLAs).
Who’s Eligible and Who’s Not?
The FERS Supplement is available only to FERS participants who retire before age 62 and qualify for an immediate annuity. To be eligible, you must meet your Minimum Retirement Age (MRA) and have either 30 years of service or 20 years of service at age 60. You’re ineligible for the SRS if you’re a disability retiree, retire under MRA+10 rules, or opt for a deferred FERS annuity.
What Happens at Age 62?
At 62, your FERS Supplement stops. You can then apply for Social Security and receive a reduced benefit, or wait until your Full Retirement Age to get your full benefit. Alternatively, delaying Social Security until age 70 could result in a higher monthly payout.
For more information, reach out to a certified FRC® advisor who understands your unique federal benefits.
