Ask The Experts: Retirement

By Reg Jones

Earnings limit

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Q. As a CSRS Offset employee for retirement purposes, what are the dollar limits on either federal employment or private employment after retirement and receiving your pension? Are there tax implications?

A. If you return to work for the federal government, in most cases your annuity will be reduced by the amount of your Social Security benefit. On the other hand, working in the private sector would have no effect on it. Note: When you are eligible for a Social Security benefit at age 62, two things will happen: First, your CSRS annuity will be reduced by the amount of Social Security benefit you earned while a CSRS Offset employee, whether or not you apply for that benefit. Second, if you were receiving a Social Security benefit, it would be subject to the Social Security earnings limit. Your benefit would be reduced by $1 for every $2 you received in earnings from wages or self employment that exceed the limit, which, in 2012, is $14,640.

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