The FERS Supplement (2024 Update)

[@leonardhusser5167]

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

[@rosanavarro4003]

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

[@PlanYourFederalBenefits]

So nice of you

[@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.😊

[@christalisaias7236]

Do ptd years count towards our 30 year requirement?

[@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.

[@ray.d.oeaux1230]

Another great informative video.

[@kalel282012]

Thank you 🙏🏼 for the info! First time hearing about this. You’re awesome 👏🏽 👏🏽 👏🏽

[@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!

[@mrslatham]

Thank you for your detailed presentations! Easy to follow and understand.

[@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?

[@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!

[@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

[@Bbbbbbbbbbxxxx]

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

[@dejackson104]

I missed my supplemental income because my retirement date was miscalculated by 2 months and 19 days. So I had to come back into the government after being retire and on social security . So now I'm not sure how long i have to stay in to meet all the retirement requirements again.

[@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.

[@thepigwillfly5869]

@2:30 - Correct me if I am wrong, but I also think there is another group that gets FERS Supplement. If you retire under a VERA and when you reach MRA, you get the Supplement until you are 62. Correct??

[@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.

[@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!

[@cathydale2191]

@@PlanYourFederalBenefits The only thing I wasn't certain about in this video was the years in service...is that the total years or the "retirement" years? I love all your videos and I am going to tell all my coworkers about how awesome your videos are. They definitely are way, way, way better than any training we get.

[@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

[@runner2008]

Thank you. This video is very helpful.

[@juanhurtado4712]

I can retire as a LEO in 3 years, this video helps a lot. Thanks. 🙏

[@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

[@allenwilliams1169]

Great video. Thank you

[@PlanYourFederalBenefits]

You bet

[@pattyk8594]

Great video thank you!

[@PlanYourFederalBenefits]

My pleasure!

[@Yette]

Downside to Pension & Supplement is no COLA

[@testtesting2868]

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

[@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.

[@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).

[@zenawarrior7442]

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

[@grizmba]

great explanation... thanks

[@PlanYourFederalBenefits]

Glad it was helpful!

[@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)

[@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.

[@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.

[@RonnieShepard-p1v]

how much the supplement is tax

[@PlanYourFederalBenefits]

Great question. "Yes, it certainly will be taxed. And unlike Social Security, 100% of your FERS supplement will be subject to tax. Note: For those that don't know, “only” up to 85% of your Social Security can be subject to taxes." Source: hawsfederaladvisors.com/the-fers-supplement-the-ultimate-guide/#:~:text=see%20the%20money.-,Is%20The%20FERS%20Supplement%20Taxed%3F,can%20be%20subject%20to%20taxes.

[@md-crab7379]

If you take a Vera, you have to wait to apply for supplement once you met its requirement

[@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.

[@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.

[@avantpearson6896]

Any special provisions for retired military personnel who is now working in federal government position pertaining to a supplement.

[@qtip7345]

My question is what if I have a MRA 57, I have 27 years civilian service and additional 11years military years time I bought back for total 38 years government service. Do I qualify for the fers supplement pay?

[@PlanYourFederalBenefits]

Great question. Yes, it will qualify you to receive the FERS supplement, but it will not add to your years of service when calculating your FERS supplement amount. Here is a great article with more information: hawsfederaladvisors.com/qa-will-my-military-time-reduce-my-fers-supplement/

[@HongBuhmDoh]

Does dividend income count as an active working income?

[@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.

[@alwells7629]

They got me!

[@Wink527]

Does time as a student count toward the computation? I have a service computation date (SCD) for leave that counts my time as a student and a SCD for retirement that does not count my time as a student.

[@PlanYourFederalBenefits]

Great question. Feel free to schedule a one-on-one meeting with us through this link to answer your questions/concerns: app.hawsfederaladvisors.com/whatservicemakessense

[@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/

[@fishing_gimiks_az]

with Pension + FERS supplement - Fed. tax withheld, is SSS tax also withheld???

[@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

[@mikelittle5913]

If I buy my military time back and it adds on to my civilian time...or is it strictly civilian time regardless if u bought you military buyback

[@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/

[@scottkearney6027]

By taking the FERS Supplement, assume we are disqualified from getting the 10% pension bump at age 62. Is that correct?

[@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.

[@mariamdn7]

I get a survivorship annuity, and I will retire and get my annuity based on personal service . Can I get FERS SUPPLEMENT

[@jayd87ram]

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.

[@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.

[@michaelrodriguez1909]

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

[@jeffreyblanton9877]

I’m pretty sure military time is calculated into this as long as you bought your time back.

[@carisimington-lairson9847]

I am a special provisions retiree as an air traffic controller. I have recently read that you are not subject to an earnings cap for a FERS supplement even after age 57 if you work in a training position after retirement, in my case a contract air traffic instructor. Anyone else know about this ?

[@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)

[@mikeindseth5065]

Does a TSP distribution count as earned income against this supplement. More importantly, if I do ROTH conversions during the two year window in which I would be getting the supplement, will they count as earned income?

[@PlanYourFederalBenefits]

Great question. Feel free to schedule a one-on-one meeting with us to answer your questions/concerns: app.hawsfederaladvisors.com/whatservicemakessense

[@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

[@WrvrUgoThrUR]

Valuable information, but the title makes it seem like there’s something you could do wrong or forget to do when you’re on the cusp of retirement-like not filing the paperwork correctly-causing you to not receive it at all regardless of your eligibility.

[@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/

[@patriciarockfan6717]

Would I lose the supplement as a widow of a federal law enforcement law enforcement officer at 62?

[@PlanYourFederalBenefits]

Great question. Feel free to schedule a meeting with us to best answer your questions/concerns: app.hawsfederaladvisors.com/whatservicemakessense

[@md-crab7379]

Is the supplement considered as a retirement because certain states do not tax retirement income?

[@PlanYourFederalBenefits]

Great question. Feel free to schedule a meeting with us to get personalized help: app.hawsfederaladvisors.com/whatservicemakessense

[@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)

[@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

[@johnpatti3560]

It’s a fraction of what you’ll get until you start collecting SSAN at 62. Don’t make it sound like it’s a great thing.

[@kevinedward-jt2vs]

Military conversion time does not count toward the supplement years.

[@mclovinzoombie]

I have a few quetions about calculating "service". It's my understanding that unused sick leave does not count. Is this correct? Also let's say someone has 31 years and 9 months service or 31.75 yers of service. Would the formula be 31.75 divided by 40 OR 31 divided by 40? It makes a difference, not a huge difference but a difference. Thanks

[@Fedupgarbageguy]

Sick Leave does not count for the purposes of the FERS supplement. It is also whole years, so your formula will be 31/40.

[@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😔

[@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?

[@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.

[@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.

[@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.

[@mattlawson4727]

what if you have 30 years at 55 are you at MRA? and is that income ( from another job income) reduction just temporary for that year, or is it a permanent fers supplement reduction?

[@PlanYourFederalBenefits]

Great question. Feel free to schedule a one-on-one appointment to discuss your questions and concerns here: app.hawsfederaladvisors.com/whatservicemakessense

[@offerlefamily2795]

If I was to take MRA +10 (w/ 24 years of service) and defer my retirement until age 60 (3 years), would I be able to receive the supplement between the ages of 60-62?

[@PlanYourFederalBenefits]

Great question. No, you must retire with an immediate retirement to get the FERS supplement.

[@twong3255]

How would this work if you are LEO with mandatory retirement at age 57, but instead of retiring, you transfer to a non Leo position to add more civilian time. Would this extra time count in the FERS supplement?

[@raycabrera941]

I bought back my military service (11 years) with 22 years of federal service,which will take me 33 years combined at age 58. Do I qualify for the fers supplement?

[@PlanYourFederalBenefits]

Great question. Your military time does not count when your FERS supplement is calculated but it does count when it comes to be eligible for the FERS supplement.

[@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

[@20noldi]

If you retire at age 50 and are on FERS supplement and do not work anymore, does your social security amount at age 62 decrease since your not earning anymore?

[@PlanYourFederalBenefits]

Great question. If you retire before your full retirement age, the social security benefit estimate might be lower that its estimate.

[@hallhv01]

What if I make $30,000 in stock day trading? Is that the same as income from a job therefore my supplement would be reduced?

[@JamesMundo-z8q]

My supplement has been reduced to $0 due to the earnings test. However, this year I will earn only about $10,000. I am 59 yoa and am under special provision (Law Enforcement). Will OPM automatically reinstate my supplement next year or will I have to notify them and prove my income?

[@PlanYourFederalBenefits]

Great question. It would be good to contact them. If you would like any personalized help with any other questions, feel free to schedule a meeting with us through this link: app.hawsfederaladvisors.com/whatservicemakessense

[@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

[@tonyt793]

37 yrs divided by 40 gets me 92 percent multiplied by 2166. which means it should be getting 2003 dollars per month. BUT I GET ONLY 1806 PER MONTH,, SOMEBODY RIPPING ME OFF!!!

[@melissacarter5834]

Can you talk about Republicans agenda to get rid of it? How they can do it? Can Trump sign an executive order? Does it need to pass congress? Majority vote? What would mean to retirees? Other implications? Would they grandfather in current recipients?? Any other issues? Concerns?? THANK YOU!!!

[@hallhv01]

Congress must pass a bill a d trump most sign. There are several bills in Congress right now to reduce the pension, increase what we pay in, remove locally Kay from pension calculations etc. It's a Republican majority now so better chances of passing.

[@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)

[@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.

[@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