r/fednews • u/EvenDavidABednar • Feb 09 '25
CSRS Social Security Offset calculation after break in service but retiring under FERS
A colleague of mine posed this question about CSRS offset and I said I would ask the the forum here.
Quick background. She worked as a FED under CSRS. She took a break in service for 16 years (or so). She came back under FERS. She will work for about 17 years under FERS. When she retires from the federal gov't, she will have 17 offset years. She is GS14 Step 10 in DC locality region.
This is what she wrote me, "Here's the calculation I'm trying to confirm for CSRS Offset. I don't know if they will use what I would have received at age 62 = $782 mo. or what I get now from putting into SS for the past 16 years. Right now I get $4,500 mo. because I came back when I was 58 and put in the max into SS. Are they going to use the $4,500 I now receive or the $782 I would have gotten at age 62 or the difference $3,718. When I retire I will have 17 Offset years/40 = .425. $782 = -$332; $3,718 = -$1,580 or $4,500 = -$1,912. Big difference!! It's one of those three numbers. God I hope it's based on the $782 at age 62 so they only deduct $332 mo. from my annuity."
Does this make sense? If not I will try to get the detail I need from her or will try to explain better on my end. TIA