Thread: Retirement Income : CSRS vs FERS...What's The Social Security Impact ?

If I had it to do over and switch to FERS I would not, but I would have invested the max into the TSP!

Good questions Stoplight. I have one. I'm under FERS and none of it counts against the earnings limit of SS. Do CSRS people lose $1.00 for every $2.00 for every dollar earned over $23,500 from SS because CSRS was not SS based? IE: $43,000 - $23,500 = SS benefit - $9,750 or $60,000 - $23,500 = SS benefit - $18,250

Originally Posted by nnuut

If I had it to do over and switch to FERS I would not, but I would have invested the max into the TSP!

Agree, Nut ! Although I didn't say that, it seems like a CSRS pension, coupled with maxing out a TSP contribution (even without a match !) was an AWESOME deal for you Guys !!! I think NASA went that route...sweet !!!



Stoplight...

Originally Posted by Bquat

Good questions Stoplight. I have one. I'm under FERS and none of it counts against the earnings limit of SS. Do CSRS people lose $1.00 for every $2.00 for every dollar earned over $23,500 from SS because CSRS was not SS based? IE: $43,000 - $23,500 = SS benefit - $9,750 or $60,000 - $23,500 = SS benefit - $18,250

WOW ! GREAT QUESTION, Bquat ! Never thought of that, either !!!

CSRSers that get SS benefits ?? Care to weigh in ?


Stoplight...

I get SS benefits, but mine was cut 60% because I had less than 30 years payed in. They cut all CSRS SSA by 60% if you have less than 20 years then prorate it to 30 Years and there is no deduction. I paid for 18.5 years and they give me 40% of what a FERS would get.

Originally Posted by nnuut

I get SS benefits, but mine was cut 60% because I had less than 30 years payed in. They cut all CSRS SSA by 60% if you have less than 20 years then prorate it to 30 Years and there is no deduction. I paid for 18.5 years and they give me 40% of what a FERS would get.

Isn't this because of the government pension (CSRS) offset (penalty) that Reagan signed way back when? I don't remember the exact name of it though.

I will be eligible for SS only because I have worked part time outside the government; 4 years Air Force, 8 years coaching high school soccer, 10 years at Best Buy and however long I want to work as a contractor. My CSRS retirement DOES NOT include social security. But because I have a government pension my SS will be reduced (when I decide to collect it).

Originally Posted by nasa1974

Isn't this because of the government pension (CSRS) offset (penalty) that Reagan signed way back when? I don't remember the exact name of it though.

I will be eligible for SS only because I have worked part time outside the government; 4 years Air Force, 8 years coaching high school soccer, 10 years at Best Buy and however long I want to work as a contractor. My CSRS retirement DOES NOT include social security. But because I have a government pension my SS will be reduced (when I decide to collect it).

Your SS benefits are based on your contributions, not your retirement plan. Sign on to SS web site to get your participation rates and expected payout. www.ssa.gov

Edit: you may want to check the WEP notes on the site. Make sure youre earnings meet the qualifications.

Originally Posted by Frixxxx

Your SS benefits are based on your contributions, not your retirement plan. Sign on to SS web site to get your participation rates and expected payout. www.ssa.gov

Edit: you may want to check the WEP notes on the site. Make sure youre earnings meet the qualifications.

Yes you are right there. I was just pointing out that retirement income from a retirement plan that doesn't have a SS tier to it counts toward annual income for the SS limit test.

Originally Posted by Frixxxx

Your SS benefits are based on your contributions, not your retirement plan. Sign on to SS web site to get your participation rates and expected payout. www.ssa.gov

Edit: you may want to check the WEP notes on the site. Make sure youre earnings meet the qualifications.

So what your saying is that more than likely the SS credits earned outside the government won't have a WEP penalty but will be calculated on the years worked and paying into SS. The last pamphlet I got from SS (maybe 2012) did show how much I would make per month at 62.

Originally Posted by nasa1974

So what your saying is that more than likely the SS credits earned outside the government won't have a WEP penalty but will be calculated on the years worked and paying into SS. The last pamphlet I got from SS (maybe 2012) did show how much I would make per month at 62.

The WEP basically calculates what was put in and if it is qualifying contributions. If you had a part time job but didn't put in enough "qualifying" funds, then there would be an issue. But I think the pamphlet, as best as I could make out, says it best.