FERS Special Annuity Supplement

[@richardallen6432]

Great Information Debbie...I am due to retire soon, and to make sure things are on track, I will be making a trip to my HRO, which is 400 miles away. This is to make sure all things are covered to date. I found out that supposedly, my mil buy back did not go through for my Army years, but did go through for my Air Force DD214s. I find this a worthy investment to drive that far, as it equates to about 120 dollars a month lost from my FERS annuity. That 120 a month adds up fast, when you owe only 1000 to buy it all back.

[@debbiehatch8016]

Amen Richard! It really does. Thanks for the compliment.

[@pvagustin]

Thank you for the very detailed and clear explanation of the supplement. When my friends ask me to explain this to them, I just send them the link to your video. Have a great day ❤❤

[@debbiehatch8016]

I love that!!! So glad it's helpful. Thank you.

[@RonnieShepard-p1v]

is the supplement taxes and how much its taxes

[@debbiehatch8016]

@@RonnieShepard-p1v Yes, the supplement is taxable. It goes on your income taxes along with everything else that you have and that amount set your bracket. It’s not a specific tax amount it’s based on your bracket.

[@RonnieShepard-p1v]

@@debbiehatch8016 ok thanks am at 22%

[@nickmrt2670]

Hi If one hypothetically takes the supplemental benefit at age 58 and receives this benefit till the age of 62, what happens than? Does one have the option to say I don’t want to have anymore benefits and can wait a few years to increase ss benefits or must I continue with the amount I’ve been getting. Thanks so much

[@debbiehatch8016]

The Supplement automatically ends at age 62 (earlier if the earnings limit is exceeded). The individual decides when to sign up for Social Security - at age 62 or later. They are not automatically enrolled in SS when the Supplement ends. The Supplement comes from OPM along with your government pension; your SS pension comes from the Social Security Administration. Let me know if you have other questions please.

[@BuzzsawBrent]

This is such a good source of info!! Thanks so much !❤😊

[@debbiehatch8016]

Thank YOU for letting me know you found it helpful.

[@E-ZE-DUZIT]

When I retire at age 56 1/2 with my 30 yrs. They will automatically start sending my Fers supplement, correct?

[@gregthomas2448]

Hi, question, I retired September 30, 2022 age 55. I won’t be eligible for the bridge until 56.6 in August 2023. I started government work in 1988. However I paid into social security prior to that working in high school and through college. Do those years get credited or just my FERS employment years which is 34 years if they counted all the years I paid into social security I would have 40 years. Thank you.

[@debbiehatch8016]

I'm going to say "kind of" both. Here's why. The simply Supplement estimate has four lines. Line 1, your estimated age 62 Social Security benefit (this includes all of the years you paid into SS - even prior to the government). Line 2, your years under FERS (only) - this of course is only your government time. Line 3, divide line 2 by 40. Line 4, multiply the decimal from line 3 by the SS on line 1.

[@gregthomas2448]

@@debbiehatch8016 Thank you ! The government finds a way to make it somewhat complex 😉 hopefully they figure out the debt ceiling issue which comes to head this June. Apparently a little known 1996 law allows the gov to tap SS funds to pay all debts. I’m confident no political party wants to touch SS benefits 🇺🇸

[@bwayne4656]

your boxes are still disconnected. I retired at 60. Received my first FERS interim check eight weeks later while OPM determines my final retirement check. Not receiving the supplement check. Retirement still not assigned to OPM for processing. How long will the Federal government delay processing in order to not have to pay the supplement check I was promised?

[@debbiehatch8016]

Hi there. Trust me when I say this, "I have no dog in the fight". I have no reason to support or not support OPM. The interim payments are currently lasting 6 months or so. When OPM is done adjudicating your pension and you start receiving the full amount, you will receive your Supplement and it will be retroactive to your retirement date. They do not pay it with your interim.

[@bwayne4656]

@@debbiehatch8016 Thank you. It is good to know that I will receive my full two years of supplemental pay as promised

[@lumo9701]

I have a question…. I want to get a loan to carry me until the pension start coming to stay afloat. Is it wise to borrow from tsp or just get a loan from my credit union? I’m planning retirement, I’m 60 with 37 yrs of service.

[@debbiehatch8016]

Hi Lu Mo. First my standard disclaimer: I am not a Certified Financial Planner and I don't play one on the internet. It's a very low interest rate (currently 3.125%). You pay the principle and interest back to your own account. You can take out a general purpose loan for any reason and don't need documentation. You CAN use that money to carry you until the regular annuity payments start coming. Depending on what the market is doing, if you pull money out of TSP, it's no longer invested or making you money (it's also no longer invested or losing...). If you have already retired, you cannot take out a TSP loan; although you can continue to make payments on any outstanding loan you took out while working. Whether you are working or not, since you are 60, you can make withdrawals from TSP without penalty. The program is very flexible right now so you could elect monthly payments for a period of time; start, stop, and restart those at will. This would carry you through getting regular annuity payments and the money wouldn't have to be paid back. Here's a link to more information if this interests you. www.tsp.gov/living-in-retirement/distribution-options/ Don't hesitate to let me know if this information isn't clear.

[@lumo9701]

@@debbiehatch8016 Thank you so much for your response. I haven’t retired yet. I’m scheduled with a retirement specialist on Monday. I’m going to do a loan to get me over the gap. If I can ask one more question? I have 562 sick leave hours. I set a retirement date September 30, 2022. A coworker said I should push back my retirement date and use up my sick leave. I told her it’s not easy to just walk in a dr office asking for that amount of time of to use up the sick leave. What’s you take on this? You’ve really been helpful in your videos and I wish you in Ga to assist me. Thank you

[@ScottUSAGame]

When calculating the FERS Supplement in step two when you identify how many full years of service you have OPM will actually ROUND to the nearest year. So if the person in your example retires on or before 30 June they ROUND DOWN to 25 years, but if they retire on or after 1 July they ROUND UP to 26 years. So even though I am eligible to retire on 30 June, if I just wait one more day my supplement jumps up by $40-something dollars per month. $40 per month every month for 5 years is a lot of money to lose for only 1 day of work. Of course FERS employees are supposed to retire on the last day of the month to get full credit for that month, so I will retire 31 July instead of 30 June. I never hear anyone mention this, and I'm surprised how many people don't know about this.

[@debbiehatch8016]

Thanks so much for your input Scott. I appreciate it. There are a ton of rules to try to keep track of and everything is a bit more complicated than it appears at first blush. It's not surprising to me that we (mere humans - myself included) may overlook one or two. The worksheet I use in classes and this video came directly from the OPM CSRS/FERS Handbook. Chapter 51 states, as you have said, "The reduced PIA obtained in paragraph C is multiplied by the following fraction. - The numerator is the retiree's total civilian service creditable under FERS, rounded to the nearest whole number, but not exceeding 40 years; and - The denominator is 40. That said, though the total supplement amount is a bit more complicated. The Handbook reads, "To compute an annuity supplement, you must complete the following steps: First, create a 'full career' earnings history using the employee's basic pay during civilian service that is creditable under FERS and deemed wages for years after the employee turned 21 and before the first full year of FERS service. Second, update the earnings history for inflation. Third, compute the supplement, using the same formula that would be used by the Social Security Administration to compute a Social Security benefit, including the maximum reduction for early retirement under Social Security. Fourth, multiply the result of the third step by a fraction to approximate the proportion of a full career Social Security benefit earned under FERS." Here's a link if you're interested in reading the chapter. www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c051.pdf

[@ps-ic8pm]

Great presenter Debbie! Love the analogies :).

[@debbiehatch8016]

Thank you, sincerely, for your feedback.

[@michaelvadney5803]

Question: If I make enough money working as a contractor after federal retirement to kill off the supplement during the first year of Federal retirement, do I get to keep what supplement money that was paid or do I have to pay it back? I know that the following year I probably would not get any of the supplement.

[@debbiehatch8016]

No, Michael, you would not need to pay that money back. Your supplement would "simply" be reduced or go away that next year.

[@michaelvadney5803]

Thanks! Glad that someone really knows this stuff.

[@davidharrell7787]

Thanks 👍

[@gregthomas2448]

How do you calculate the amount you would get in the social security supplement bridge payment. I just retired at age 55 with 34 years service. Federal law enforcement civilian position I received an early out Vera/VSIP I know I need to wait until my MRA which is 56.6 years old. I turn 56 in February 2023. Thank you.

[@debbiehatch8016]

Here’s a simple way to compute the FERS Supplement. (1) Divide your FERS calendar years of service (start counting with your first January and stop with your last December) by the number 40. (2) Multiple that ^^ decimal by your estimated age 62 Social Security benefit. Get this from a recent SS statement after you create a My Social Security account at SSA.GOV The amount you calculate is monthly. You will receive it in your regular monthly annuity deposit from the Office of Personnel Management until you are 62, or exceed an annual earnings limit.

[@gregthomas2448]

@@debbiehatch8016 Thank you for the detailed information and response, I sincerely appreciate it.

[@aeamissouri8518]

If you sell your home after you retire and make money that goes over the threshold, is that considered income? Or would it be due to a job itself (i.e.) via w2 income?

[@debbiehatch8016]

That would not count as earnings, Amy. Wages or a profit from self-employment do count.

[@NANCO1999]

Will my supplement be based on INDEXED social security earnings?

[@debbiehatch8016]

Your Supplement is based on the Social Security Administration's age 62 amount which, yes, is based on indexed earnings.

[@NANCO1999]

@@debbiehatch8016 thanks soo much. Now I have to contact HR seeing I had part time work for 2 yrs and how that affects my retirement comp date. I planned on retiring 1/2023.

[@debbiehatch8016]

@@NANCO1999 part time service will not change your retirement computation date. It will decrease the amount of your pension. Once FERS is computed, they’ll divide the total hours you worked over your career and divide by the full time hours possible. That will be the percentage you receive. For example, if you worked 30 years, 28 of which were full time and 2 of which were half-time, you’d receive 96.67% of your FERS pension. Once HR looks at it for you, let me know if you have questions. I should do a video on this!

[@NANCO1999]

@@debbiehatch8016 So I started 11/30/1988 and part time seasonal work from 11/30/88 to 4/15/1991. So 34 yr mark is 11/30/22(but they have my SCD as 12/27/1988). 34 yrs = 70958 hrs, total hrs worked during 34 yrs was 68864 so I'd get 97% of my high 3 yrs average. Do I get any credit for the 2 months I am over the 34 yr mark? ie 11/30/2022 to 1/28/2023(my projected retirement date).

[@NANCO1999]

@@debbiehatch8016 Also is the percentage they use the EXACT percentage for example 96.439 or do they round up or down? I am concerned I might get "rounded down" lol and lose one percent. Thanks in advance !

[@donmccune2583]

Ok got this. Question With me taking my supplement unity from age 54 to 62 it stops and my ssi starts? With no deductions

[@debbiehatch8016]

Hi Don. Please note that Social Security retirement is not the same thing as SSI. SSI stands for Supplemental Security Income. It is a monthly benefit payable to people with limited income and resources who are disabled, blind, or age 65 or older. SS retirement is based on money you paid into the system while working. The FERS Supplement is completely separate from Social Security. If you retire from FERS under an option that pays the Supplement, you receive that until age 62 (or until you exceed the earnings limit). At 62 the Supplement ends. Yes. You personally decide when to sign up for Social Security which could be any time between age 62 and 70. If you draw under your full retirement age though, yes, there is a reduction. I did a video about that here: kzbin.info/www/bejne/m2PImoKweKl3ntE Don't hesitate to let me know if you have further questions.

[@barrymitchell7732]

Low volume??

[@debbiehatch8016]

Thanks for letting me know.

[@jamessproull5131]

left the federal service 3 months and 15 days shy of 30 years, turned downed for my supplement, Been told i can write to legal reconsideration any tips.

[@debbiehatch8016]

You're certainly always free to request reconsideration but to receive the Supplement, one must retire under an option that comes with it. Those ways are (1) Voluntary Retirement at MRA + 30 years of creditable service, or at least age 60 with 20 years or more (2) Early Voluntary Retirement or Discontinued Service Retirement - only once the individual attains his/her MRA though (3) Special Provisions of LEO, FF, or ATC at 50 or older with 20 years or more, or any age with 25 years of creditable service. How did you retire, James? How old were you? Let me know so I can provide you documentation. If you retired under MRA+10, Disability, or Deferred, you do not qualify for it.

[@shedfitnessstudio1460]

I’m thinking you cannot access your TSP PORTION without PENALTY until your 59.5 retired or not early

[@debbiehatch8016]

Thanks so much for stopping by. Most people think that's true but it isn't. The additional 10% tax does not apply to: • Payments made after you separate from service during or after the year you reach age 55 (or the year you reach age 50 if you are a public safety employee as defined in section 72(t)(10)(B)(ii) of the Internal Revenue Code), or • Annuity payments, or • Substantially equal payments over your life expectancy. There are other limited times when it doesn't apply as well. Read page 3 of this document: www.tsp.gov/publications/tspbk26.pdf

[@bthompson8467]

This is great. Thank you

[@debbiehatch8016]

Thank you so much.

[@sharkandtheoldmanshooting4040]

Question for the supplement, as it relates to special category employees (law-enforcement). At what age does the test actually happen? Does it happen at 56 and then reduced at 57 or does it happen at 57 and reduced at 58? I have heard both and can’t seem to find the answer anywhere. Thank you.

[@debbiehatch8016]

The answer can be found in Chapter 51 of OPM's CSRS/FERS Handbook. Subpart 51A3.1 reads: "A reduction in the retiree annuity supplement in a given year is based on excess earnings in the previous year. The reduction is assessed beginning with the year immediately after the first year during which a retiree became entitled to the annuity supplement (or reached the MRA if already receiving the annuity supplement before the MRA)." It lists this example specifically: "Bruce retired on May 2018 at age 52 under the firefighter provisions. He started receiving an annuity supplement immediately. It was not subject to the earnings test until he reached his MRA in June 2021."

[@sharkandtheoldmanshooting4040]

@@debbiehatch8016 thank you for the reference and example. So in this example would the testing start in January 2021 since that is the year Bruce turned the MRA? Or would it start the month and year he reached the MRA?

[@debbiehatch8016]

@@sharkandtheoldmanshooting4040 The month and year he reaches MRA. Here is a link so that you can look at the 2021 Form www.opm.gov/forms/pdf_fill/ri92-022_2021.pdf Look at (3) to see exactly how it's worded.

[@mikedv39]

At a Gov. retirement class. WE were told if we retire at MRA, mine 56.5 and I have 39 years with Gov. and collect the Annuity we are not paying into SSI anymore and each year it will decrease till I hit 62 and will be much lower than is projects now.. as of now I should get about $1,800 at 62. He said it could drop about 2-3 hundred when I reach 62 because I'm not paying into it I'm retired too early and receiving the Annuity instead. What is your opinion Mike Vose

[@eltigre5469]

I hadn’t thought about a yearly recalculation unless you worked another job like she mentioned. The SSA payment is based on your highest 35 earning years. If you have 39 already I don’t see why it would go down. I’m still knocking off extremely low earning years where I could take this supplement probably 3 or 4 years out of a max of 6 and see my projected payment go up. The only way I could see it going down would be by someone working all 30 years of their working career and retire missing out on 5 full years of income. That would be a pretty rare situation.

[@debbiehatch8016]

For some reason I'm just now seeing your post. I'm sorry it's been a month. Not sure why/how that happened. Your SS statement shows you the amount, having already made two assumptions (a) that you will continue to work until 62 and (b) that you will continue to make what you're making right now. If you change either variable, your SS amount will be less. That's true. I would never tell someone they retired too early. I would ask (a) what are your reasons for wanting to retire? Many have absolutely nothing to do with money (b) are you just leaving your government work and going to continue to work or not? (c) Are you okay trading a couple more years of your life to get a bigger SS check? ((not being rude here; that's a real question. Working longer will always result in bigger benefits but there is also a hidden cost.)) Be aware, too, that if you work until age 62 AND have at least 20 years of creditable service, while you would not get the Supplement, you would have an annuity calculated at 1.1% of your high 3 times length of service. If you leave prior to 62, your formula is 1%.

[@debbiehatch8016]

You're correct. SS is based on your highest 35 years of paying in. That said, our statement shows an amount, having already made two assumptions (a) that you will continue to work until 62 and (b) that you will continue to make what you're making right now. If you change either variable, your SS amount will be less. Essentially if you didn't work for those 5 years, your high 35 will shift backwards. Does that make sense?

[@jenzanoni9305]

I thought it's .75

[@debbiehatch8016]

It’s years under FERS divided by 40. If you had 30 years, it would be .75. In my example it was only 25 years. 25/40 = .625

[@flex2of4]

Thanks for the video. Here's a question. When you have sick leave, they convert it into months, weeks and days based on an 8 hour day or a 6 hour day. Here's another one. How accurate are the "estimates" they initially give you for retirement and how soon do they give you your "final true estimate"?

[@debbiehatch8016]

As promised, I did a video today regarding sick leave. I apologize for the delay but I took vacation last month. Here's a link to the video. kzbin.info/www/bejne/d52QoKB6rdeHjKs

[@richardberdecia6541]

This is information I have been looking for for a while now. OPM does not make it easy, but you did. Thank you

[@debbiehatch8016]

Thank you so much for letting me know. I'm glad it was helpful.

[@pedrogutierrez4654]

Great information! I’m eligible to retire at age 561/2 years on April 2022, with 261/2 years of service as a city carrier, My understanding is I don’t get the supplemental?

[@debbiehatch8016]

Hi Pedro. In order to receive the supplement, a federal employee has to retire on an immediate retirement. That means (a) Voluntary/Optional at MRA (55-57) with at least 30 years of service OR at least 60 years of age with at least 20 years of creditable service. (b) Early Voluntary Retirement - if approved and offered by the agency - or Discontinued Service but the supplement comes only once the individual reaches his/her MRA. The supplement does NOT come with an MRA +10, Disability, or Deferred Retirement.

[@joeaguilar-teacherofthewor4166]

Excellent explanation. Thousand times better than others I have heard.

[@debbiehatch8016]

Great to hear! Thank you so much.

[@leondelsur]

I retired early at 52 yrs. with 28 yrs. of service, I am drawing a FERS pension and SRS but do not get annual COLA increases; will I get COLA increases once I turn 62 years and the SRS stop?

[@debbiehatch8016]

Hi there. Since you are not your MRA and are receiving the supplement, I assume you retired as a LEO or FF. If that's true, you should be receiving a COLA in January - the only people who receive it under age 62 are LEOs/FFs or individuals who retired on a disability (although they do not receive the SRS).

[@TM-ui9gt]

Thank you. Is the supplement taxable?

[@debbiehatch8016]

Yes. It is taxable.

[@jamesholtz4489]

Are medicare and ss taxes taken out of the supplement??

[@angelvereen1399]

This video was so informative!! Phenomenal job

[@bhatch9093]

Thank you so much for your feedback.

[@stephendove2850]

Thank you, very helpful. Is the outside earnings figure used to determine a possible reduction or elimination of the supplement a gross income number, or is it your AGI for the year?

[@bhatch9093]

Thank you Stephen. Per Chapter 51 of the OPM Handbook, "Earnings, for purposes of calculating the earnings reduction, consist of the sum of wages for services performed in the year, plus all net earnings from self-employment for the year, minus any net loss from self-employment for the year. (See 42 U.S.C. 403.)"

[@Noname-fw7uo]

Hello Debbie, Does rental income count against the Social Security Supplement?

[@debbiehatch8016]

It does not - unless you own a business renting out property, and there is a profit you pay to yourself as part of that business.

[@atilesmo]

What happens if you go over the earning limit and the following year you turn 62 years old and no longer receiving the supplement? Are you going to be required to pay the amount that was not deducted from the supplement?

[@debbiehatch8016]

Absolutely not. The Supplement simply goes away when you turn 62 - you would not be required to pay anything "back".

[@teeduck]

The bridge is weak. No COLA with supplement. No COLA with FERS pension until 62. CSRS blows away FERS. A 2.0 multiplier at 55. With COLA starting at 55. FERS sucks.

[@debbiehatch8016]

As I tell my students in class, FERS was created to save the government money, it wasn't created for the employees.

[@jivefive99]

FERS was created because SS was going broke and they needed new money coming in from new employees for 30 years without having to pay out any benefits out to them/us (now the 30+ years are up, and we start getting our social security benefits -- just had to wait) Yes, CSRS gave you 2% of pay roughly for every year you worked and FERS gives you 1%. But again, money started coming into SS in 1987 and it wouldnt pay out anything till now. You also take on some risk with TSP (in C Fund specifically) but you can also do very well being brave and doing stocks/the C fund for 30+ years. There are million dollar TSP accounts now, and they didnt get that way via the G Fund. :)

[@ntelectronicsandotheroddit3857]

so I'm trying to find some information on this .....if you get a final leave payment (sold back leave in retirement) does that count as income towards the $18,900 earning limit?

[@debbiehatch8016]

I'm so sorry for the delayed response. You Tube sometimes notifies me with people leave comments, and other times they don't. I'm just seeing this now. Any money you earned an entitlement to prior to retirement (even if it's paid after you go) does NOT count as earnings against the Supplement.

[@ntelectronicsandotheroddit3857]

@@debbiehatch8016 . Thank you, I started working for a contractor and did one job so far and already a third of the way to the 18900 figure, I'm definitely relieved of that fact

[@danieljustdaniel9550]

I turn 62 on July 23 this Year. My 1st SSA check will be 23 Sept . when will my supplement stop.

[@debbiehatch8016]

Hi Daniel. Your Supplement ends the month you turn 62 - so, July.

[@MegaAlex010101]

Good content but a bit hard follow. You should stop sumarize each statement with an example before transitioning whe saying or.

[@debbiehatch8016]

Thanks for your feedback and suggestion. I do appreciate it. 99% of people like the way I teach.

[@WDFH]

Is it better to get under DSR or retire disabled?

[@debbiehatch8016]

Not sure what you mean by "better". These are two different retirement option. You only qualify for DSR if you "lose your job through no fault of your own". It also requires employees be 50 or older with 20 or more years of creditable service; or any age if s/he has 25 years. Disability is when one is found to be "unable to do the job s/he was hired to do". It does not have an age criteria and the length of service required under FERS is 18 months or more, under CSRS 5 years or more. DSR pays the Supplement (the topic of this video) once the person is his/her minimum retirement age (55-57) until age 62. Disability does not come with the Supplement.

[@albanavarro430]

I'm 61 years old I working full time and the ss office at NC tell me I cant collect my husband social security benefits as survivor cause I make 1% more of the amount he make he was military retire and worker in federal and I just custodian worker. How this work..they tell me I have to quit my job in available to collect..please explaining to me

[@debbiehatch8016]

Alba, Social Security survivor benefits have an earnings limit when the person is under his/her full retirement age. At 61 you are under your full age - it is likely because you're still working, and earning too much, that you're not able to receive a benefit. You may find this booklet helpful. www.ssa.gov/pubs/EN-05-10084.pdf

[@albanavarro430]

Please I need your advice asap I want retire next year sept 30 22 I will have 62 years old in march 22 and I love collecting my husband deacead December 14 2020.social security in the same years 2022 after I retire ..what is your advice for me please.. I'm so confusing with all this

[@debbiehatch8016]

Do you work for the federal government, Alba? How long have you been working?

[@flex2of4]

Do you believe that we can get grandfathered in if they threaten to take it away with the new fiscal year?

[@debbiehatch8016]

I don't have a crystal ball and the fact is NO ONE can tell you whether we'd be grandfathered or not. The law would have to change and then we'd need to read it. That said, I believe that we would be grandfathered in if they take it away.

[@drobins8166]

I was just notified my SSA supplement was to be paid but seems too high. In fact, it is $435 higher than my age 62 benefit. I am dumbfounded. It is higher than my FERS annuity. The breakdown at services online shows two entries for the supplement while the mailed statement shows only the sum of those two entries. Crazy.

[@debbiehatch8016]

Yikes! That's definitely an error. The Supplement will be a percentage of your age 62 benefit. If they send you more, I'd advise you to hold onto it - they will ask for it back at some point.

[@SK-mz9pc]

This was very helpful! thank you. If retirement age is 57 but I will hit my 30 year mark at 50. Will I qualify for FERS annuity supplement at 50 or 57?

[@debbiehatch8016]

I'm so glad you found the video helpful. Thank you for letting me know. If you are a firefighter, LEO, CBPO or ATC, you can retire at 50 or older with 20 or more; or at any age if you have 25 years of creditable service, and you would qualify for the Supplement right away. If you're not under Special Provisions, the only way you could retire under your minimum retirement age (57) is if you do a Deferred Retirement. Deferred does not come with the Supplement. OR if your agency offered you an Early Out. If that happens, you could retire at 50 or older with 25 years or more but you would not qualify for the Supplement until you had your MRA birthday. Don't hesitate to let me know if you have further questions.

[@mikedv39]

over the years we are told this is going away. even our government retirement classes some instructors will not discuss do to its going to be removed. what do you think?

[@debbiehatch8016]

Mike, I think that's ridiculous. Yes, for a number of years there have been proposals to do away with the Supplement. It has not been taken away at this point though. Not discussing an actual available benefit makes no sense. IF the Supplement goes away, we'd need to read the new law to determine for sure but - likely - there would be some amount of grandfathering for those folks currently under the system. I can't guarantee that, of course, but it is likely.

[@Retired-jr3qs]

Great video!! Keep them coming!!

[@bhatch9093]

Thank you so much for your feedback. I really appreciate it.

[@PRChris69]

Nobody ever talks about the Special Provision Employees. LEOs, Fire Fighters, Air Traffic Controllers. We can retire at any age with 25 years of service. I am illegible to retire at 48, but will work to 50 to be illegible to withdrawal from TSP.

[@debbiehatch8016]

Thanks so much for watching, and for you input, Christian. I actually talk about Special Provision Employees all the time. Yup. 50 with 20 or any age with 25 for the retirement. 50 of older if retirement was SPE for TSP without having the 10% early withdrawal penalty tax.

[@keshiaperez5432]

That was fantastic information. You answered a question for me that I've always thought about. Thank you

[@debbiehatch8016]

Glad it was helpful! Thank you so much for letting me know.

[@johnhansen8272]

Excellent “live” although I didn’t catch it live. Thank you nonetheless. Your clear information was appreciated, but not unfortunately applicable. I do however appreciate your content as information is power, as I learn every day.

[@debbiehatch8016]

Sincerely appreciate your feedback John. Thanks so much.

[@debbiehatch8016]

Thank YOU!!! I’m going to do a video on sick leave and will tag you when it’s up. The answer is, “neither 8 nor 6.” It’s actually 5 point something. The estimates are accurate PROVIDING the assumptions they have made are true for you. The calculator assumes you never had a temporary (non-deduction) appointment and that you do not have any non-deposited military time included in your leave SCD.

[@Dapperdave-gg6vx]

Great presentation. When you talk about the means test at your MRA, do you mean literally right at your birthday or the start of the next year. My birthday is in May, does the means test start in June or in January of the following year? I have heard people who hit their MRA (let say 57) do not have to retire until December 31 of that year. I am wondering if the same concept applies to the FERS supplement.

[@debbiehatch8016]

@@Dapperdave-gg6vx Thank you so much for your kind words. Chapter 51 of OPM's CSRS/FERS Handbook specifically reads, "after reaching the MRA, retirees who are receiving the annuity supplement are required to report earnings annually to OPM." Say you retire under FF/LEO prior to MRA and start receiving the supplement right away. You then reach your MRA in May of 2022. You submit your reported earnings (for June - December 2022) to OPM through Services Online any time between February and June 2023 (after you've filed your taxes). Just to be clear too, MRA = minimum retirement age (not maximum). If you're not a FF/LEO, once you hit MRA with 30 years, you're eligible to retire if you want to but you don't have to.

[@JC-tm6wh]

Will your SS estimate for 62 , be much less when you turn 62 because you retired at 56 and got supplement and no longer paid into SS for the 6 years (56-62) ??

[@debbiehatch8016]

I love how you worded your question. Many people assume their SS will be less because they receive the Supplement. That isn't true. It will be less because the individual retired and didn't pay into SS for those 6 years from (in your example age 56-62). Our SS Retirement benefits are computed by applying a 3 line formula to our highest 35 years of reported earnings. The statement makes two assumptions in giving us the amounts. (a) That we will continue working until 62 or later and (b) that we will continue making what we're making right now. If I change one of those variables (e.g. I stop working) I change my amount. Let me know if you have further questions.

[@deplorabledreg2935]

Wow. Your channel is filled with a wealth of information for federal employees. Would I be eligible for the FERS supplemental at age 59 with 28 career years with the post office, 2 years as a Transitional employee carrier and 3 years of military service that I have already bought back the time for? Thank you

[@debbiehatch8016]

Thank you very much for your kind words. I'm glad you find the information helpful. At 59 with 30 years or more you would be eligible for a Voluntary Retirement and, therefore, also the FERS Supplement. If you have 28 career years AND bought 3 years of military service on top of that ( so you have 31 years of creditable service), the answer is yes. Since the transitional employee (TE) category was first created by arbitral award in 1992, and FERS employees cannot typically deposit civilian time if it was after 1/1/89, it is not possible to make FERS deposit for prior TE service. That time counts for leave accrual but nothing else.

[@deplorabledreg2935]

@@debbiehatch8016 Thank you for your prompt reply and the good news about being eligible for the supplemental. There is one hurdle I must jump prior to beginning my retirement process. Are you aware if OPM has grants waivers for those who have not met the "5 year rule"? I carried FEHB from 1994-2016 when I jumped on my wife healthcare plan (2017)which was similar but at a substantial difference in premium costs being she works for a community hospital here. The mistake I made was not researching the "5 year" requirement to carry FEHB into retirement until 2018 when I started researching retirement requirements. I immediately signed back (2019)onto the FEHB and still on it till this day. Upon projected retirement would have been on FEHB for 25 years. Again, I appreciate the work you do to keep us federal employees informed and would love to hear your input and ANY recommendation on my situation. THANK YOU!!

[@debbiehatch8016]

@@deplorabledreg2935 OPM usually grants a waiver for the 5 years of FEHB coverage only in specific situations. That said, it doesn't hurt to ask. Here's their information about the topic: "Public Law 99-251 gave OPM the authority to waive the 5 years of service requirement when, in its sole discretion, it determines that it would be against equity and good conscience not to allow a person to be enrolled in the FEHB Program as an annuitant. An employee's failure to satisfy the 5-year requirement must be due to exceptional circumstances. Employees requesting a waiver must provide OPM with evidence that: the employee intended to have FEHB coverage as a retiree; the circumstances that prevented the employee from meeting the 5-year requirement were essentially outside of the employee's control; and the employee acted reasonably to protect the right to continue FEHB coverage into retirement. (This includes reading and acting on information provided and requesting information if none is given automatically.) OPM's approval of a waiver request depends on the extent to which the individual could have controlled the events leading to the loss of coverage at retirement. When OPM reviews a waiver request, it considers: whether the individual had a compelling reason to believe he/she was covered as a family member of another person enrolled in FEHB during the time in question; evidence that an individual's employing office would not allow him/her to enroll; the extent to which an individual could have controlled the events that led up to the loss of the right to continued FEHB coverage; whether the individual had acted to gain FEHB coverage at the earliest opportunity after learning of the loss of benefits or possible loss of future rights; and whether the individual had substantial FEHB coverage during his/her career even though there was a break in continuity during the last 5 years of service."

[@deplorabledreg2935]

@@debbiehatch8016 Once again thank you for the reply. And thank you for including some very interesting information. I am going to take your advice and make an attempt for a waiver. I have shown my commitment to the FEHB since my conversion to regular back in 1994 and my reinstatement after a family issue that resulted in the lapse of coverage for the short period of time. THANKS AGAIN!!

[@deplorabledreg2935]

Good morning Debbie. Hope all is well. I was searching you videos for specific details on the TSP but couldn’t find anything detailing the tax liability associated with withdrawing from your TSP in retirement. I have read and heard that TSP taxes your TSP withdrawals at a whopping 20% based on your withdrawal options. And I also heard the tax is estimated at married with 3 children if you take a monthly annuity for more than 10 years. I’m hoping your response will bring some clarity to this matter. And thank you again!!