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Actual FERS Soc Sec Supplement
- Thread starter jak834
- Start date
FundSurfer
Well-known member
The formula is as follows:
Calculate the amount of social security benefits the employee would have recieved if they were currently 62 divided by 40 times the number of years of service under FERS. This number will vary for everyone based on income and number of years of social security based quarters and number of years of federal service.
Calculate the amount of social security benefits the employee would have recieved if they were currently 62 divided by 40 times the number of years of service under FERS. This number will vary for everyone based on income and number of years of social security based quarters and number of years of federal service.
I've read that military time is subtracted from that formula, even though we have payed the deposit on the military time in FERS. So instead of getting credit for 30 FERS years I will only get credit in the formula for 26 years, because of 4 of those years being military time. So if I am to receive $1300 in SS at 62, you would think I would get $975 in the supplement now, but I believe I will only get $845. (Retired from USPS on 5/31/11 and obviously haven't gotten final numbers from OPM yet.)
So is there anyone who has payed the deposit on their military time and who is already receiving their supplement, who can speak to this specifically? thanks
So is there anyone who has payed the deposit on their military time and who is already receiving their supplement, who can speak to this specifically? thanks
Frixxxx
Moderator
From OPM
Computation of Annuity Supplement
The FERS annuity supplement is computed as if you were age 62 and fully insured for a social security benefit when the supplement begins. OPM first estimates what your full career (40 years) social security benefit would be. Then we calculate the amount of your civilian service under FERS and reduce the estimated full career social security benefit accordingly. For example, if your estimated full career social security benefit would be $1,000 and you had worked 30 years under FERS, we would divide 30 by 40 (.75) and multiply ($1,000 x .75 = $750). The result would be your FERS annuity supplement, prior to any reductions.
Link
Section 51A2.1-3 Computing the Retiree Annuity Supplement (Cont.)
Shows no penalty for military time. The only credit you need to buy in is for the actual annuity.
Computation of Annuity Supplement
The FERS annuity supplement is computed as if you were age 62 and fully insured for a social security benefit when the supplement begins. OPM first estimates what your full career (40 years) social security benefit would be. Then we calculate the amount of your civilian service under FERS and reduce the estimated full career social security benefit accordingly. For example, if your estimated full career social security benefit would be $1,000 and you had worked 30 years under FERS, we would divide 30 by 40 (.75) and multiply ($1,000 x .75 = $750). The result would be your FERS annuity supplement, prior to any reductions.
Link
Section 51A2.1-3 Computing the Retiree Annuity Supplement (Cont.)
Shows no penalty for military time. The only credit you need to buy in is for the actual annuity.
"Then we calculate the amount of your civilian service under FER..."
That's what's the confusion point. Even though a person pays for his military time by making the deposit into FERS, you still don't get credit for it as "civilian service" time when figuring the supplement. So the military time is figured for retirement, but not when calculating the SS supplement. Correct? I was told that I wouldn't receive 75%, but about 65% of the SS that I would get at age 62.
Anyone reading this have actual figures from their actual FERS payments?
That's what's the confusion point. Even though a person pays for his military time by making the deposit into FERS, you still don't get credit for it as "civilian service" time when figuring the supplement. So the military time is figured for retirement, but not when calculating the SS supplement. Correct? I was told that I wouldn't receive 75%, but about 65% of the SS that I would get at age 62.
Anyone reading this have actual figures from their actual FERS payments?
Last edited:
Forgot to add this section to last post:
Comments on this topic from myfederalretirement.com:
2. Total civilian service under FERS (in figuring the supplement) does not include: (a) a period of leave without pay exceeding six months; (b) those years of FERS service in which a departed employee requested a refund of employee FERS contributions but no redeposit was not made subsequent to the employee's return to federal service; and (c) military service on which an employee made a deposit.
Comments on this topic from myfederalretirement.com:
2. Total civilian service under FERS (in figuring the supplement) does not include: (a) a period of leave without pay exceeding six months; (b) those years of FERS service in which a departed employee requested a refund of employee FERS contributions but no redeposit was not made subsequent to the employee's return to federal service; and (c) military service on which an employee made a deposit.
I just got my FERS Benefit Estimate Report last Friday, Aug 5th. The FERS Annuity Supplement was less than I thought. Came to this sight for the answer and this string of post explains why it was less than I thought.
I bought back my six years of military service and have a 30 years I need to retire.
I thought I would get 75% (30/40) but it was only 60% (24/40).
I bought back my six years of military service and have a 30 years I need to retire.
I thought I would get 75% (30/40) but it was only 60% (24/40).
jimijr
Member
There is a widget at http://fedbens.us/ which will calculate it. Using it I estimated $1000. It came through last week, $850. I, too, failed to subtract my military time. In twelve months when I turn 62 and apply fo SS, I will get a nice raise, from $850 to ~$1500.
Elgallo
Member
Lemeeeeeeeseeeee now ifn i got this straight. Your military don't count even though you PAID the deposit. (CHECK). AND, as was the case with my time in the military, you paid into SS the whol time. (CHECK). So how the F(**&(& do they justify this disallowance? Oh yeah...the snakes in suits don't have to!
113 and a wake up!
113 and a wake up!
Viva_La_Migra
Well-known member
If you bought back your military time, you'll get more in your federal retirement pension than SS will give you. At least, I know I will.
driz
Member
Yea, inquiring minds want to know here too. Are you guys telling me that I paid into yet aren't getting credit for it??????? At least I was in during the early so called all volunteer army so I got paid enough to live on unlike a lot of you. Now all I need to do is see some TeaBagger on TV inferring that we are getting TOO GOOD A DEAL on our retirement and it's time to fly off the handle myself. Somebody pinch me and wake me up....
PessOptimist
Well-known member
You get another bennie. Look at your SCD Leave date. Block 11 on my statement. The date should be before you became a Fed Civilian even if you didn't "buy back" the time. That gets you in to earning more AL earlier.
Military annuitants do not get that adjustment for the SCD Leave date. We are making too much all ready.
Off subject and possibly a hijack of the thread. Annuitants (retired lifers to some of you) were told that the annuity would stop. It was implied that it would stop when we paid the deposit. I have since been told the military annuity would NOT stop until I began collecting a FERS annuity. This has been discussed elsewhere. I know of no one who has actually tested it. The deposit would have been five figures for my era. Most who retired from the military at that time would not have had that sum lying around in spite of that generous BAQ/BAS allowance. They call it something else now and it is based on where you are stationed. I surmise they rolled the mythical (to me) VHA in to it.
Driz and others, yeah, you paid in to SS while serving but that just doesn't count. Thank you for your service. Now shut up and carry on.
Military annuitants do not get that adjustment for the SCD Leave date. We are making too much all ready.
Off subject and possibly a hijack of the thread. Annuitants (retired lifers to some of you) were told that the annuity would stop. It was implied that it would stop when we paid the deposit. I have since been told the military annuity would NOT stop until I began collecting a FERS annuity. This has been discussed elsewhere. I know of no one who has actually tested it. The deposit would have been five figures for my era. Most who retired from the military at that time would not have had that sum lying around in spite of that generous BAQ/BAS allowance. They call it something else now and it is based on where you are stationed. I surmise they rolled the mythical (to me) VHA in to it.
Driz and others, yeah, you paid in to SS while serving but that just doesn't count. Thank you for your service. Now shut up and carry on.
Frixxxx
Moderator
If you served military time it counts toward your leave computation date REGARDLESS if you buy back the time.
If you buy back the time, it only counts for the annuity (FERS).
Even though you paid into SS while on active duty the time is NOT applied toward your supplement.
The provision to do the computation EXCLUDES military time.
The only reason I can think they don't give you the credit is to save money from being withdrawn from the system.
If you buy back the time, it only counts for the annuity (FERS).
Even though you paid into SS while on active duty the time is NOT applied toward your supplement.
The provision to do the computation EXCLUDES military time.
The only reason I can think they don't give you the credit is to save money from being withdrawn from the system.
Kaufmanrider
Member
You are correct. However, when you do become eligible for SS itself, the military time is calculated in, giving you more years and hopefully more $$$
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