The FERS Annuity Supplement is one of the most frequently misunderstood federal retirement benefits. It pays eligible FERS retirees who retire before age 62 a monthly amount that approximates the Social Security benefit they earned during their federal service — acting as a bridge until they can claim actual Social Security. But it comes with an earnings test, ends automatically at 62, and is not available to everyone who retires under FERS.
You qualify if you retire on an immediate unreduced FERS annuity — meaning you meet standard retirement eligibility (age 60 with 20 years, MRA with 30 years, or MRA+10 without penalty). You do NOT qualify if you: retire under MRA+10 (voluntary early retirement with the age reduction penalty), take a deferred retirement, retire on disability, or are already 62 when you retire. Special provision employees (LEOs, firefighters, ATCs) also qualify and face the earnings test only after reaching their MRA.
Section I FERS Supplement Estimator
Estimate My FERS Annuity Supplement
Section II Earnings Test — 2026 Scenarios
The table below shows how post-retirement earned income affects a sample $1,125/month supplement ($13,500/year) at various income levels. Adjust for your own supplement amount using the calculator above.
| Annual Earned Income | Over Limit | Annual Reduction | Remaining Annual Supplement | Monthly Remaining |
|---|
* Assumes $1,125/month ($13,500/yr) sample supplement and 2026 earnings limit of $24,480.
Section III Eligibility Rules
Four conditions that must all be true
- Immediate unreduced FERS annuity: You must retire on an annuity that begins immediately — not a deferred or postponed annuity. The retirement must be voluntary or due to involuntary separation under specific conditions, not disability.
- Under age 62 at retirement: If you are 62 or older when you retire, you are eligible for actual Social Security retirement benefits and do not receive the supplement. The supplement is specifically for the gap period before 62.
- Not MRA+10 with penalty reduction: Employees retiring under the MRA+10 provision (MRA with 10–29 years of service) with the 5%/year age reduction applied do NOT receive the supplement. If you postpone the annuity under MRA+10 to avoid the reduction, you also do not receive the supplement during the postponement period.
- Not disability retirement: Disability retirements do not receive the FERS supplement. They receive FERS disability retirement benefits instead, which have their own computation rules.
Section IV Frequently Asked Questions
No. TSP withdrawals — whether from traditional or Roth balances — are not earned income and do not count toward the FERS supplement earnings test. The same applies to investment income (dividends, interest, capital gains), rental income, pension income, annuity payments, Social Security benefits, and any amount shown on a Form 1099. Only wages from employment (W-2 income) and net self-employment income (Schedule SE) count. If your post-retirement income is primarily from investments, TSP, or rental properties, you can earn significant amounts without affecting your supplement at all.
The reduction is one year delayed. If you exceed the earnings limit in 2026, your supplement will not be reduced until July 2027. OPM sends an annual Annuity Supplement Earnings Report (Form RI 92-22) in April, which you complete by early June. Based on your reported earnings, OPM adjusts your supplement starting the following July. This delay means you have a window between when you earn the income and when your supplement is affected — but it also means you cannot immediately stop a reduction by earning less the following year until the next adjustment cycle.
Yes, 100% of the FERS supplement is subject to federal income tax. This is different from actual Social Security benefits, where only up to 85% may be taxable depending on your combined income. The supplement is treated as ordinary income, not as a Social Security benefit for tax purposes. Many FERS retirees are surprised by this distinction — their actual Social Security benefit at 62 may be partially tax-free, but the supplement is fully taxable.
Yes. If your earnings in a prior year exceeded the limit and your supplement was reduced or eliminated, and your earnings in a subsequent year drop below the limit, you can request reinstatement. Submit proof of lower earnings (your Form 1040 tax return and W-2s) to OPM. The supplement will be reinstated at the appropriate level for the new earnings year. Remember that the supplement ends permanently and automatically at age 62 — reinstatement is only relevant if you are still under 62.