How to Calculate Your FERS Supplement: Estimate What You’ll Receive Before Age 62

The FERS Special Retirement Supplement (SRS) is an additional payment made to certain federal employees who retire before they’re eligible for full Social Security benefits. It’s designed to bridge the income gap from the time you retire under FERS until you turn age 62, when you can begin receiving Social Security.

‍

How to Calculate the FERS Supplement?

‍

The formula to estimate your FERS supplement is straightforward:

FERS Supplement = Estimated Social Security benefit at age 62 × (Years of FERS service ÷ 40)

This means the supplement is a pro-rated portion of what you'd receive from Social Security at age 62, based solely on your federal civilian years of service (military time typically doesn't count unless it's bought back).

Example:

• Estimated SS benefit at 62: $1,600/month
  
  
• Years of FERS service: 30
  
  
• FERS Supplement = $1,600 × (30 ÷ 40) = $1,200/month
  

This supplement will begin at retirement (if you meet eligibility) and ends at age 62, regardless of whether you apply for Social Security then.

‍

Calculate your FERS supplement

‍

When Does the Supplement Start and End?

‍

• Begins: The month your regular FERS retirement begins (you must meet MRA + 30 or age 60 + 20 conditions).
  
  
• Ends: The month you turn 62, whether or not you file for Social Security.
  

If you’re under the Minimum Retirement Age +10 (MRA+10), you won’t qualify for the supplement.

‍

The Earnings Test: Working After Retirement Could Reduce Your Supplement

‍

The FERS Supplement is subject to the same earnings test as Social Security before full retirement age. In 2025, if you earn over $22,320 in wage income (not pensions or TSP withdrawals), your benefit will be reduced by $1 for every $2 over the limit.

Example:

• You earn $30,320 working a part-time job.
  
  
• You exceed the limit by $8,000.
  
  
• Your FERS supplement is reduced by $4,000/year (or approx. $333/month).
  

This makes post-retirement employment a crucial factor in deciding whether you rely on or defer the supplement.

‍

‍

How It Differs from Your Main FERS Annuity?

‍

It’s important to note that the FERS Supplement is separate from your main annuity:

• Your FERS annuity = 1% × high-3 average salary × years of service (1.1% if retiring at 62 with 20+ years)
  
  
• FERS Supplement = Only based on your Social Security estimate and federal service years
  

FERS Supplement and Future Uncertainty

‍

The FERS Supplement has faced multiple proposals for repeal especially for new hires. As of mid-2025, no official repeal has passed, but some bills in Congress have sought to eliminate the benefit for those retiring after 2027.

Federal employees nearing retirement should stay informed on legislative developments.

‍

Takeaway: What Federal Employees Can Do Now

‍

1. Request a Social Security estimate (via SSA.gov) for your age 62 benefit.
   
   
2. Count your federal civilian years of service.
   
   
3. Use the formula above to estimate your FERS Supplement.
   
   
4. Consider whether you plan to work after retirement income may reduce your supplement.
   
   
5. Monitor policy changes that may affect your eligibility.
   

The FERS Supplement can be a helpful bridge but like all retirement benefits, understanding how it’s calculated ensures you don’t leave money on the table.

‍

FAQ'S

‍

What is the formula for the FERS calculation?

‍

The basic FERS annuity calculation is: (High-3 Average Salary) x (Years of Creditable Service) x (Pension Multiplier)

‍

How much is the average FERS supplement?

‍

Generally, your FERS benefit is 1% of your “high-3” average salary multiplied by your years and months of service. 

‍

What is an example of a FERS supplement?

‍

if your estimated annual Social Security benefit at age 62 is $20,000 and you have 20 years of FERS service then your SRS will be $10,000 ($20,000/40 x 20).

‍

What is the income limit for the FERS supplement?

‍

You have received the FERS Annuity Supplement Survey to determine if you earned more than then exempt amount ($19,560 for 2022) set by the Social Security Administration.

‍