Ask The Experts: Retirement

By Reg Jones

CSRS Offset

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Q. I started working for the Postal Service in 1983. I also worked before that for the Navy and other places and have received a Social Security Administration statement saying I will be eligible for Social Security benefits at age 66. Is there a percentage that is deducted from either my Postal Service retirement or Social Security benefits? What is CSRS Offset? Am I in that, or would I know if I were?

A. If you are a CSRS employee, 7 percent of your pay is deducted to pay for that coverage. If you are in CSRS Offset, 6.2 percent if deducted for Social Security coverage and 0.8 percent for CSRS.

If you are a CSRS employee, when you retire, your CSRS annuity will remain the same. However, your Social Security benefit will be reduced if you have fewer than 30 years of substantial earnings under Social Security.

If you are a CSRS Offset employee, when you retire and are eligible for a Social Security benefit, your CSRS annuity will be reduced by the amount of Social Security benefit you earned while a CSRS Offset employee. Your Social Security benefit, which will be based on all your Social Security covered service, will likewise be reduced if you have fewer than 30 years of substantial earnings under Social Security.

Comments

  1. Pat M Says:
    January 17th, 2014 at 3:29 pm

    Block 30 of Form 50 shows what retirement system you are in. 1 is pure CSRS; C is CSRS-Offset; K is FERS. So, that’s an easy way to tell.

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