Post-Retirement

OPM will contact the Social Security Administration (SSA) to obtain an entitlement determination when you are close to age 62 (the normal age of Social Security eligibility), or during OPM’s retirement adjudication process if you are over the age of 62 when you retire. If you are eligible to receive Social Security benefits, SSA will provide OPM with information concerning your Social Security benefits. Please note that even if you do not apply for Social Security benefits when first eligible, the reduction in your annuity must still be made if you are entitled or would on proper application be entitled to Social Security benefits.

1. The offset reduction is subtracted from the annuity rate to become your new gross annuity rate. The offset reduction is the lesser of: The difference between the Social Security monthly benefit amount with and without Federal earnings; or
2. The product of the Social Security monthly benefit amount, with Federal earnings, multiplied by a fraction where the numerator (top of fraction) is the employee’s total CSRS Offset service rounded to the nearest whole number of years and the denominator (bottom of fraction) is 40.

Example:

• Social Security benefit with Federal Earnings: $1,500
• Social Security benefit without Federal Earnings: $1,000
• 20 years of CSRS Offset service

Calculation 1:
   $1,500 – Social Security benefit with Federal Earnings
− $1,000 – Social Security benefit without Federal Earnings
   $500 – Result of Calculation 1

Calculation 2:
   $1,500 – Social Security benefit with Federal Earnings
× 20 / 40 – 20 years of CSRS Offset service / 40
$750 – Result of Calculation 2

CSRS Offset reduction amount would be $500.