Talking about "the bridge" once again. Understanding the FERS Supplement

[@vvatc]

Just used the quick formula to calculate my FERS supplement and it's off by about $1,200 from what the Air Force provided in an official FERS benefit estimate. I ran the calculation again using my total FERS service credit (which includes my military time) and it's only off by about $100. I'm ATC and had to request my official estimate THREE times before they finally got it correct and it still seems they messed up the FERS supplement. Very helpful information as always, Debbie!

[@debbiehatch8016]

Thank you very much Bud. I do know that the Air Force’s supplement calculation is quite typically over-estimated.

[@Ludatajuju]

Hi Debbie, You explain things better than any one else. I am receiving SSDI & I am a part time fed. Will I still be eligible for the supplement? I am retiring in 1 year. I will have MRA & 30 years.

[@debbiehatch8016]

Thank you so much. Your FERS retirement benefits are separate from your Social Security benefits (there is an bit of an exception if people retire on a FERS Disability but that's not applicable to you). Under MRA +30, yes, you will be eligible for the FERS Supplement.

[@leotube1963]

Hi Debbie, great information. I'm retiring in 2 months and the question i have is, once this contract is approved which will probably be in another 3 months will i get backpay even if I'm retired already? Thank you.

[@debbiehatch8016]

Thank you for joining me and congratulations on your impending retirement. I'm not sure what you mean about a "contract". Can you explain? Once your retirement is processed, will you be paid back to the retirement date? Yes.

[@leotube1963]

Sorry..Nalc contract

[@debbiehatch8016]

@@leotube1963 If a contact is approved and if it provides for a pay raise and if they make it retroactive, yes. If they make it effective on the date signed, and you've retired, no of course.

[@leotube1963]

@@debbiehatch8016 Thank you Debbie

[@claudemerritt1306]

If we do 37 years and reach our MRA and when we get to age 62 years of age, I feel we should have 1.1, not 1.0, and if we did over 30 years, we should not get reduced until we reached age 62, that is 25 percent reduced

[@debbiehatch8016]

You are absolutely correct. Age 62 or older with 20 or more years, the formula would be 1.1% and there would be no penalty until the person decided to draw SS (which would be 25% OR 30% depending on whether the person's FRA is 66 or 67. BUT This video was not about the FERS Annuity; it was about the FERS Supplement. A person who retires age 62 or older is NOT eligible for this benefit at all. Nothing I said in this video applies to people who retire at age 62 or older.

[@unknownorigin9517]

I retired under early out and recently reached my MRA in April 2024. I received my first supplement payment in June for the month of May per a letter I received from OPM. However, I later received an annuity adjustment letter informing me that my July supplement payment for the month of June and the coming months would be $165 less per month. Would the payment I received in June have not only included the supplement for the entire month of May but also a prorated amount for April? Is that why I received $165 more only in the month of June? I didn’t think the supplement was prorated. The letter I received failed to include any details as to why the amount changed. I have contacted OPM about this to no avail. Very frustrating. Also, prior to my retirement I attended two of your seminars in person. They were tremendously helpful. Thank you.

[@debbiehatch8016]

I'm thrilled you found the training helpful. Thank you so much for letting me know. Sad OPM is not getting back to you but most definitely not surprised. The Supplement is prorated. When we do the calculation in class, and most certainly here in 15-20 minute snippets, I should you how to do just an estimate so we do round to full calendar years. Here is a link to Chapter 51 of the OPM handbook if you'd like to see the "factual" way this computation is done. www.opm.gov/retirement-center/publications-forms/csrsfers-handbook/c051.pdf

[@arcas2829]

Can I retire prior to 20+ 60 under MRA + 10 and at 60 yo file for the 20+ 60 FERS supplement even though initially filed for retirement at age 58 yo under MRA + 10 ? thanks

[@debbiehatch8016]

No you can't. If you retire under MRA+10, that does not ever come with the Supplement.

[@davidowens1607]

Debbie - will my FERS supplement be included in my monthly FERS payment, or will it be included in a separate payment? Thank you.

[@debbiehatch8016]

It is in the same monthly deposit as your FERS.

[@davidowens1607]

@@debbiehatch8016 okie dokie - thank you. 🙂

[@nicholasrunowich371]

Debbie: At the 19:13 mark on this video you say that "you do not add any of your sick leave to the calculation.. Yet Chapter 51 page 11 says: Total Civilian Service Creditable under FERS divided by 40. So, I understand that total credible service is inclusive of sick leave". Do you disagree ? I understand that you are matching the examples starting on page 32 - when they use the phrase: "Enter total years of FERS civilian service (rounded to nearest whole number)." But those examples are inconsistent with the phrase used on page 11. Can you comment on this please - someone might have over 1 year of sick leave - and that will be a larger SRS if allowed to add it in. Thank You.

[@debbiehatch8016]

Hi Nicholas, We do not subtract any sick leave you’ve earned/used, of course. When we retire, the sick leave on the books is added to creditable service for the computation of our federal annuity. It results in a larger FERS annuity. Sick leave (on the books) is not added to, does not increase, the Supplement.

[@nicholasrunowich371]

OPM, when I talked to them said that the SRS is considered an "annuity", though it goes away at age 62. So the sick leave is counted is what they said for the SRS. Can you please confirm that with your own points of contact. No where in that Chapter 51 does it state that Sick leave is counted or not counted. OPM pointed me to the page 11 equation for credible service and then we talked about just what you said S/L is used for the annuity part - and OPM told me that the SRS is considered an "annuity". Thanks @@debbiehatch8016