The FERS Annuity Supplement — also called the Special Retirement Supplement (SRS) — is one of the most valuable and least understood benefits in the FERS system. If you retire before age 62, this monthly payment bridges your income until Social Security begins.
Yet many federal employees reach retirement without knowing it exists. This guide covers everything.
What Is the FERS Supplement?
The FERS Supplement is a temporary monthly payment from OPM for FERS employees who retire before age 62. It is designed to approximate the Social Security benefit you earned during your years of federal service — filling the gap between retirement and the age when you can collect actual Social Security.
It is NOT Social Security. It is paid by OPM from federal funds, calculated separately, and ends automatically at 62.
Who Qualifies?
To receive the supplement, you must retire with an immediate, unreduced FERS pension:
Regular FERS employees qualify if:
- Retiring at your MRA with 30+ years of service
- Retiring at age 60 with 20+ years of service
Special provisions employees (LEO, firefighters, ATC) qualify if:
- Retiring at age 50 with 20+ years of special service
- Retiring at any age with 25+ years of special service
Who does NOT qualify:
- MRA+10 retirees (MRA with 10–29 years, accepting the 5% reduction)
- Deferred retirees
- Disability retirees (in most cases)
The Calculation Formula
(FERS Civilian Service Years ÷ 40) × Projected Social Security Benefit at Age 62
Example: Employee with 25 years of FERS service, projected SS benefit of ,800/month at 62.
- Service ratio: 25 ÷ 40 = 62.5%
- Monthly supplement: 62.5% × ,800 = ,125/month
The 40-year denominator represents a full civilian career. The supplement compensates you for only the portion of that career spent in federal service.
The Earnings Test
The supplement is subject to an earnings test. If your annual earned income (wages or self-employment) after retirement exceeds the limit, your supplement is reduced:
- 2025 earnings limit: approximately ,320/year
- Reduction rate: for every earned above the limit
Example: You earn ,000 after retirement.
- Excess: ,000 - ,320 = ,680
- Annual reduction: ,680 ÷ 2 = ,340
- Monthly reduction: ,340 ÷ 12 = /month
Investment income, TSP withdrawals, rental income, and your FERS pension do NOT count toward the earnings test.
OPM requires an annual earnings report. Your supplement for the next year will be adjusted based on what you reported earning.
Key Facts About the Supplement
| Fact | Detail |
|---|---|
| Taxable? | Yes — federally taxable as ordinary income |
| COLA? | No — the amount is fixed at retirement |
| When does it end? | Automatically at age 62 |
| When does it start? | Usually 2–3 months after retirement (backpay provided) |
| Part of pension? | No — it is a separate payment |
Planning Around the Supplement
The supplement can represent a significant portion of your retirement income. An employee with 30 years of FERS service and a projected Social Security of ,900/month would receive: 30/40 × ,900 = ,425/month — or ,100/year — until age 62.
This makes the choice between MRA+30 and MRA+10 retirement especially important. MRA+10 retirees get no supplement, and also take the 5% per year pension reduction.
Use our FERS Pension Calculator to estimate your basic benefit pension and review your overall retirement timing.