FERS Introduces Retirement Supplement for Younger Federal Employees
The Federal Employees Retirement System (FERS) has introduced a 'supplement' to its basic retirement benefit. This supplement, acting as a bridge to Social Security entitlement, is available to certain employees retiring younger than age 62. Unlike other support systems like Germany's 'Grundrentenzuschlag' or 'Mütterrente', specific details about FERS supplement recipients are not provided.
FERS, a three-tiered system including Social Security, Thrift Savings Plan, and a government retirement benefit, offers this supplement to eligible retirees. Administered by the Office of Personnel Management, the supplement is included with the FERS basic retirement benefit and requires no special application.
Eligibility criteria include an immediate, unreduced retirement, specific service requirements, and certain special coverage employees who may retire as early as age 50. About half of all FERS employees are entitled to the supplement upon retirement, with it ending when the recipient turns 62. However, employees aged 62 or older at retirement, those resigning without qualifying for an immediate retirement, and disability retirees are not eligible.
The FERS supplement is subject to an earnings test by the Office of Personnel Management. This test can reduce or eliminate the supplement between the minimum retirement age and age 62. Additionally, a surviving spouse of a FERS retiree may also be eligible for the supplement under certain conditions.
The FERS supplement, while smaller than the CSRS benefit for any given length of service and level of compensation, provides a valuable bridge to Social Security entitlement for certain younger retirees. Its eligibility criteria and earnings test ensure it targets those most in need, contributing to the overall robustness of the FERS retirement system.
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