1. What is the FERS Annuity Supplement?

The FERS (Federal Employees Retirement System) Annuity Supplement is a special benefit paid to eligible federal employees who retire before age 62. It's designed to bridge the gap between retirement and eligibility for Social Security benefits.

2. How Does the Calculator Work?

The calculator uses the FERS supplement formula:

Where:

• Social Security — Estimated Social Security benefit amount
• Reduction — Any applicable reductions or offsets
• Supplement — The resulting FERS annuity supplement amount

Explanation: The supplement approximates the Social Security benefit you earned during your federal service, reduced by certain factors.

3. Importance of FERS Supplement Calculation

Details: Accurate supplement calculation is crucial for federal employees planning early retirement, as it helps estimate total retirement income and plan for the transition to full Social Security benefits.

4. Using the Calculator

Tips: Enter your estimated Social Security benefit amount and any applicable reductions. Both values must be non-negative numbers. The calculator will compute your estimated FERS annuity supplement.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for the FERS annuity supplement?
A: Generally, federal employees who retire under immediate retirement provisions before age 62 with at least 30 years of service, or at age 60 with 20+ years of service.

Q2: How is the supplement reduced?
A: The supplement may be reduced by earnings from wages or self-employment above certain limits, similar to Social Security earnings tests.

Q3: When does the supplement stop?
A: The supplement stops the month you become eligible for Social Security benefits at age 62.

Q4: Is the supplement taxable?
A: Yes, the FERS annuity supplement is taxable as ordinary income for federal tax purposes.

Q5: How accurate is this calculator?
A: This provides an estimate based on the inputs provided. For precise calculations, consult with your agency's benefits administrator or OPM.