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You are here: Home / FAQs: SRS

FAQs: SRS

Choose from the subcategories below to review the Frequently Asked Questions.  Click on a question to expose the answer below.   

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Eligibility

How do I become eligible to draw the Special Retirement Supplement?

An employee must perform at least 1 full calendar year under FERS, AND retire on an immediate, non-disability pension.  NOTE: Deferred retirees and those retiring under MRA+10 rules are not eligible to receive this benefit.

If I retire after the age of 62, am I still entitled to this benefit?

No.  This benefit is only payable up to age 62.  Any employees retiring after the age of 62 are not eligible to receive this benefit.

Do I need to apply for the Special Retirement Supplement when I retire?

There is no need to apply for this benefit.  It is paid automatically by OPM to those who qualify.

Can I still get the Special Retirement Supplement if I am receiving a disability retirement?

No.  Employees retiring under a disability retirement are not eligible for the Special Retirement Supplement.

Can I still get the Special Retirement Supplement if I retire under an Early Out?

Yes.  Just know that employees retiring under an Early Out are not eligible to receive this benefit until they reach their MRA (age 55-57).  

Are employees who retire under MRA+10 rules eligible for the Special Retirement Supplement?

No.  Employees retiring under MRA+10 rules are NOT eligible for this benefit.  

Calculations

If I am eligible for this, do I get this benefit immediately upon retirement?

Technically, yes.  The Special Retirement Supplement is payable immediately, but you will not actually receive this benefit until OPM has finalized your retirement claim (which typically takes several months).  

Will I receive this benefit while OPM is finalizing my retirement paperwork?

No.  Although it is payable to you during this time, you will receive a lump sum payment for the payments OPM missed while they were processing your retirement claim.

If I work after retiring from federal service, does this change how much I'll receive from the Special Retirement Supplement?

Perhaps.  Depending on how much you make, you may be subject to the Earnings Test.  It applies if both of these are true:

  • Person is drawing SRS benefits, AND
  • Their wages exceed the limit of $17,040/year (for 2018)

Their Special Retirement Supplement benefit will be reduced by $1 for every $2 of earnings over the allowable limit of $17,040/year (for 2018).

NOTE: “Wages” do not include income from a pension, TSP, other investments, etc.

How does OPM know how much I make to determine if I am subject to the Earnings Test?

You will receive a survey similar to this one each year from OPM that requests you to report your earned income for the prior year.  If you make too much, the following year's benefit will be affected.

Does the Special Retirement Supplement affect my Social Security benefit?

No.  The Special Retirement Supplement benefit affects Social Security in absolutely no way.  

Taxes

If OPM misses payments and pays me in lump-sum, which tax year do I claim the money in?

You will claim the income in the year in which you receive it.

Do states tax the Special Retirement Supplement benefit?

The income from the Special Retirement Supplement is subject to the same rules as your pension.  If your state taxes your pension, it will tax the Special Retirement Supplement.

How is the Special Retirement Supplement taxed?

The Special Retirement Supplement is taxes as ordinary income (just like your CSRS or FERS pension).

Cost of Living Adjustments

Does the Special Retirement Supplement receive a COLA?

No.  There are no adjustments made the the Special Retirement Supplement benefit.  Once it is calculated, the benefit amount stays the same until it stops at age 62.

I am a Special Provision Employee.  Do I receive COLAs on the Special Retirement Supplement?

No.  No employees (regardless of type) receive cost of living adjustments to their Special Retirement Supplement.

Special Retirement Supplement & Social Security

Once my Special Retirement Supplement stops at age 62, am I required to take Social Security benefits at that time?

No.  You retain the same choices as any other person entitled to Social Security as far as when you choose to begin drawing benefits.  However, you should note that the Special Retirement Supplement will stop at age 62 when you are eligible for Social Security (even if you choose not to draw Social Security benefits at that time.

Is the Special Retirement Supplement considered taking my Social Security benefit "early"?

No.  Although the Special Retirement Supplement shares many of the same characteristics of Social Security, they are two completely separate programs.

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