The FERS Supplement (2024 Update)

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[@bucklaughlin906]

So many Feds don’t know this exists. If you understand the supplement early enough, you can plan so that you don’t have to forfeit the supplement by working after retirement.

[@leonardhusser5167]

You taught me more than anyone about Fers your video's are very informative .

[@chrisdryden4740]

Great info! I have 4 years to go with USPS and will be 57. Looking forward to my retirement. Started not long out of highschool all postal years 36 total 32 career.😊

[@rosanavarro4003]

Love your videos. They are always very informative. Thank you for all you do!

[@PlanYourFederalBenefits]

So nice of you

[@mcz68l]

It's more like a quasi bridge, the 85 percent rule of taxation on SS, as well as the COLA rules don't apply.

[@13hiker]

As expensive as things are today, it's a shame that your supplement is reduced if you make over $22,320 in a retirement job.

[@ThisFriggenGuy-li5ui]

Thank your congresspeople

[@michaelroy925]

Same as Social Security

[@ThisFriggenGuy-li5ui]

More like social insecurity

[@AD-ui2pz]

@@michaelroy925what is the limit for those collecting social security ?

[@luisaymerich9675]

The same would apply to social security until you reach full retirement age but who wants to work after 67?

[@Borderpig]

I’m special provision who retired in 2021. I have been “working” and getting paid way over the limit of $22,320 with no test as I was not 57 yet. I just turned 57 yesterday, but I think that getting free $1,275 a month is not worth losing the potential for earning over $4,000 a month doing my gig. That’s fine…they can keep my supplement.

[@David-cv3bp]

It takes about a full year before you see the reduction. The letter OPM sends is only once a year and it’s usually @february asking about the year prior earnings. Now everyone’s position is different, In my case the $4000 is not worth it because you’re only getting $2725 a month for work after factoring in the supplement. Also depending on what type of special provision you were, your costs for work may have substantially gone up. For example, if you were an LEO with a take home car, chances are your new job does not provide so you have vehicle expenses. If you are doing 1099 work, then you are/should be paying the FICA and SSA costs which is @ 12% off the top. So you are really after additional costs maybe making $2000 a month. Which for me is not worth the headache of working anymore and believe me I did retire 6c and did the consultant gig at a great rate.

[@ray.d.oeaux1230]

Another great informative video.

[@bradh9800]

When obtaining you SS estimate to figure out your FERS Supplement, please keep in mind that the SSA assumes that you will continue working, earning and paying into social security until age 62. Since you are retiring early, any years between retirement and 62 will potentially be $0, so your actual PIM will be lower than the SSA estimate provided. This means that your estimated FERS supplement will also be lower.

[@cr8blitz22]

Thank you so much for sharing this info Mr. Haws. This video really helped me better understand the FERS suppliment

[@PlanYourFederalBenefits]

Glad it helped!

[@Vicshade]

I’m not getting the FERS supplement because I spent 20 years in Army so I have that retirement and got into government late BUT I appreciate this great information. Keep it coming.

[@rangerstyleisme]

According to my 2024 Benefits Statement I'll have 24.58yrs at age 60...so I guess I'll be in luck. Before I saw this video figured my military would get me the 30 (but no)

[@williamthone9678]

So helpful! As I am thinking a question you answer it. Love your thorough, clear, animated explanations. Good job on the production quality, too.

[@PlanYourFederalBenefits]

Awesome, thank you!

[@zenawarrior7442]

Excellent info again, good verifications for sure. Thanks! 😊✨️💰📃

[@runner2008]

Thank you. This video is very helpful.

[@jamesestrada7972]

Yeah it's ridiculous they penalize us for wanting to work another gig. Just retired from usps at 56 and 6 with the supplement. 34 yrs with usps

[@Yette]

Downside to Pension & Supplement is no COLA

[@testtesting2868]

Special category employees get retirement "Diet COLA" but zero Supplement COLA.

[@darlaland6018]

I retired at age 60 with 26yrs in service and gave Opm all my SS information which stated I should have gotten 300.00 more than what they gave me they went back into my SS information and figured my fers supplement from the year I started working full time with the government even though the OPM specialist stated I would get the 300.00 more than what the government gives me I wrote the OPM department five times and all they tell me is that it goes back to when you started working full time with the government so in other words they have been for over a year pocketing my 300.00 somewhere or someone’s pocket

[@pattyk8594]

Great video thank you!

[@PlanYourFederalBenefits]

My pleasure!

[@allenwilliams1169]

Great video. Thank you

[@PlanYourFederalBenefits]

You bet

[@stephenstafford6240]

Very helpful! I was wondering when it would end, and now I know!

[@PlanYourFederalBenefits]

Great to hear!

[@RB-tm7ox]

Nice overview! Thank you!

[@PlanYourFederalBenefits]

Glad it was helpful!

[@wildzeke]

You also do not get any COLAs when collecting the FERS supplement.

[@mcz68l]

Yep, I know someone who went the 60/40 route because of that

[@laenvirolatina4763]

Oh no!

[@parler8698]

😢

[@acap5399]

You get a COLA on your pension (LEO, ATC, FIRE) , not the supplement since that is a fixed amount

[@wildzeke]

@@acap5399 You do not get a COLA until you are 62.

[@grizmba]

great explanation... thanks

[@PlanYourFederalBenefits]

Glad it was helpful!

[@markmurrell1894]

Your video covers taxes twice lol. I think you missed it during your edit. Thank you for the information!

[@PlanYourFederalBenefits]

Haha, taxes are important

[@jeffreyfourier8434]

You stated that military service years do not count towards the FERS Supplement. I attended an OPM retirement seminar, and the facilitators commented that military service does count IF the military deposit was made. Do you agree?

[@Ponchofan400]

What do you mean by “ if the military deposit was made “? As in, you bought your time back?

[@jeffreyfourier8434]

Military Buy-Back is another term used for Military Deposit. I served 5 years active duty, and when I started civil service, DFAS computed my military deposit (buy-back) amount to have that time count towards retirement. I then paid xx amount over 2-3 years.

[@Ponchofan400]

@@jeffreyfourier8434I’m going through this confusion right now with the Postal Service HR Department. My MRA of 56 years 8 months will occur on December 10 2024. I will have 29 years 8.5 months of Postal Service time. I bought back my 4 years of Marine Corps time so I’m well over 34 years with sick time come December. Am I going to get the Fers supplement only having 29 years and 8.5 months of postal service time? The retirement articles on this Fers supplement are very straightforward sounding by saying “ military time does not count and you MUST have your MRA and 30 Postoffice years of service??? I don’t want to wait till April 1 2025 to get my 30 years of postal service time!! I want out this December 2024 but want to make absolutely sure I’m taking my supplement with!!

[@Ponchofan400]

I too want this answer. I’ve watched his videos for awhile now and it irritates me when he throws out statements and when you question him on what he meant, he never responds back.

[@PlanYourFederalBenefits]

Thanks for the question. We wrote an article that answers this question. "In most cases bought back military time will not count when calculating your FERS Supplement". Article Link: hawsfederaladvisors.com/buying-back-military-time-the-ultimate-guide/#:~:text=No%2C%20you%20can%20not%20buy,when%20calculating%20your%20FERS%20Supplement.

[@EAFBCCTLR]

Was really looking forward to the FERS supplement after retiring from ATC, unfortunately looking at disability retirement after 15 years of federal service. Special provision FERS employes taking disability retirement do not qualify for the FERS supplement (pretty sure I learned that from one of your other videos, so thank you).

[@alwells7629]

They got me!

[@jeepinwithjim9894]

Great video and explanation. Retiring mailman next year at age 57. I meet the MRA+30. Do I need to apply for the supplement separately, or is it automatic?

[@markdillard4422]

automaticcccccc

[@edwardgrobe2848]

I'm retiring from being a mailman in june2024. FERS supplement is automatic .

[@kevinedward-jt2vs]

Military conversion time does not count toward the supplement years.

[@Ben78255]

I think that's how they estimate then supplement...not how the final calculation. There's a publication that goes into detail...but basically it uses the same methodology social security uses...except only your federal service is considered...it is NOT years of service divide by 40 mutiplied by social security at 62 (that's a gross estimate)

[@HeatherButz]

This is so helpful! Does spouse active income apply towards the 22,320 reduction amount? LOVE YOUR VIDEOS!

[@PlanYourFederalBenefits]

Great question. Here is a great article about that: hawsfederaladvisors.com/qa-will-my-spouses-income-decrease-my-fers-supplement-and-social-security/

[@Sermo_Fin_Grp]

Great info, thanks. What happens to my FERS contribution if I don't retire from federal government or if I only work 2 or 3 years for federal government.

[@delbrett2257]

You can get what you paid in back.

[@ndiandy]

Great video. Question: Is there a reason I have never seen a video by you or other fed retirement advisosr KZbin channels covering the topic of Duel Status, T-32 retirees? They are different then Special provisions or regular T-5 employees.

[@PlanYourFederalBenefits]

Here's a great video about that: kzbin.info/www/bejne/rYSQgaFtjJ6Dg5o&ab_channel=HawsFederalAdvisors

[@smedrano1964]

Since your pension is taxed and your FERS Pension is taxed. Does this add to years of . paying social security taxes to potentially raise your social security payment.

[@mattl5503]

No it does not. You pay income tax but no FICA tax because it is not earned income.

[@jaydrewery9641]

So if you’re retired a Fed Govy receiving the FERS Supplement and living in Maryland where the minimum wage is $15.00 per hour you could only work about 31 hours per week and GRO$$ (pre tax) every two weeks about $930.00

[@David-cv3bp]

The supplement gets totally washed at @ $43,000.

[@lazylop1966]

I called OPM, being special provision, and was told didn't matter if I was special provisions still penalized

[@parler8698]

😮

[@Dapperdave-gg6vx]

I would double check that. I am special provision and we were all told you wouldn't be penalized until after age 57.

[@lobodiamond2487]

Hello Sir, question is that $22,320 a gross income or net. Asking for a friend thank you appreciate all your videos.

[@PlanYourFederalBenefits]

Here is a great article that explains that: hawsfederaladvisors.com/the-fers-supplement-the-ultimate-guide/

[@ArabellaPottery]

If you get survivors benefits, before your spouse retires. Do you still pay the insurance premiums that you would have paid if the spouse did retire? Do those payments ever stop?

[@PlanYourFederalBenefits]

Great question. Here is a great video about that: kzbin.info/www/bejne/eJnJiatvgapgipI&ab_channel=HawsFederalAdvisors

[@ArabellaPottery]

​@@PlanYourFederalBenefits It was a simple yes or no. Which should take about a 10 second video. You don't have any 10 second videos.

[@michaelrodriguez1909]

I work for postal. Who do i contact to get started?

[@Constellasian]

How does this affect federal employees who were retired by disability? I have a friend who retired this way around 6 months ago. He is also a Veteran. I recall him saying his federal service years continue to accumulate even in disability retirement, so he'll have at least 30 years by the time he's 57.

[@PlanYourFederalBenefits]

Great question. We have many videos on that topic here: kzbin.info?search_query=haws+federal+advisors+disabiltiy

[@E-ZE-DUZIT]

When you say years of civilian service. Is that all working years prior to me completing 30 yrs at the post office. Then I divide that by 40?

[@PlanYourFederalBenefits]

Yes, you take your total years. This would entail for you, your 30 years at the post office. Here is the formula: (Years of Credit Service) / 40 ) X (Your Age 62 SS Benefits)

[@SailOnFlyBy]

Hypothetically, if I owned 5 rental properties at retirement, that would NOT be considered earned income right? Therefore not affecting the supplemental threshold.

[@PlanYourFederalBenefits]

Correct, rental income will not affect your FERS supplement

[@SailOnFlyBy]

​@@PlanYourFederalBenefitsNoted, thank you.

[@tomahawktom7595]

Is a special category retiree who just retired this December, do I have to request the FERS supplement or is it automatic?

[@PlanYourFederalBenefits]

Once you have applied for retirement, the FERS supplement should come automatically.

[@dollyobanor8752]

Does FER count your years of service in private jobs before working for the Federal government?: I have only worked for the Federal government for 5.5 years but 27 years total.

[@PlanYourFederalBenefits]

Great question. No, they do not count your years working in a private job.

[@jamesjarmon7150]

Will a TSP withdraw totaling 30K a year effect the $22,320 reduction rate?

[@PlanYourFederalBenefits]

Great question. Here is a good video on that topic: kzbin.info/www/bejne/infQY4erhriojac&pp=ygUoaGF3cyBmZWRlcmFsIGFkdmlzb3JzIHRzcCB3aXRoZHJhd2xzIHRhWA%3D%3D

[@gummo3q524]

Does the fers supplement have COLA? Or it stays the same from the time you retire to age 62?

[@PlanYourFederalBenefits]

No. It does not get COLA😔

[@qtip7345]

I plan to retire in the next three years st the age of 57 with 38 years government service. I also qualify for the Fers supplement. If i decide to take up another government job like the post office does my Fers supplement and other benefits remain in my retirement or does it go away?

[@PlanYourFederalBenefits]

Great question. In 2024, for any $2 earned over $22,320, you will loose $1 of your FERS supplement.

[@richardt8278]

What about if you retire early under VERA?

[@PlanYourFederalBenefits]

Great question. Here is a great article about that: hawsfederaladvisors.com/the-easiest-ways-federal-employees-can-retire-early/

[@BillSolmo]

Does Military Deployment pay affect your FERS Supplement?

[@PlanYourFederalBenefits]

Great question. It might, especially if you make more than $22,320 a year with it.

[@PlanYourFederalBenefits]

Great question. It might, especially if you make more than $22,320 in taxable income.

[@BillSolmo]

Thanks

[@sallypizan1343]

If I retire at the age of 61 can I get a supplement?

[@PlanYourFederalBenefits]

Great question. Yes, if you retire with a full retirement, you will be eligible for the FERS supplement from age 61 to 62.

[@sallypizan1343]

If I would like to retire at the age of 61 is it okey I leave my TSP traditional and then just withdraw my Roth?

[@smedrano1964]

Do T$P withdrawals affect your FERS supplement.

[@Agent_G_33]

no. its not "earned income"

[@rzel107]

So...this is entirely free money? There is no future reduction to your fers pension? No penalty for taking this money?

[@PlanYourFederalBenefits]

It's a benefit for being a federal employee (as long as you qualify)

[@Dapperdave-gg6vx]

If you work as an insurance agent (or other agent positions) and you open a corporation and your income is not consistent-would your FERS supplement be reduced? @HawsFederalAdvisors

[@PlanYourFederalBenefits]

Great question. It could be reduced if you pass the earnings limit of $22,320 (in 2024).

[@sidneypeterman4101]

How do i claim my postal time from 20 years ago

[@bryonfaust5243]

You talk about civilian time served in integers. What about if actual time served is 37.5 years?? What does the half year of extra work time get you, if anything?

[@PlanYourFederalBenefits]

Great question. OPM would not round the year up or down. They consider it by months of service.

[@David-cv3bp]

You get 6/12 of 1% added calculation.