Federal Retiree Asks About His Social Security – Ask Rusty

Dear Upset: You are correct that when you reach your full retirement age (FRA) in November you will no longer be subject to Social Security’s “earnings test,” which limits how much you can earn while collecting early benefits. But if you apply for your Social Security to start in November, your SS benefits will be affected by the Windfall Elimination Provision (WEP) due to your non-covered CSRS pension (because you didn’t pay into SS while earning your CSRS pension). As you may know, only those federal employees who retired under CSRS (Civil Service Retirement System) are affected by WEP; newer Federal employees who retire under the more recent FERS (Federal Employee Retirement Program) program are not affected.  

Because of your CSRS pension, your Social Security benefit will be reduced, but not eliminated. The amount of reduction will be based on the number of years of non-government employment you had (where you paid into Social Security). Usually, those who have spent a lifetime earning a pension without contributing to SS, but who have a separately earned SS pension, will see their SS benefit cut approximately in half.  

To answer your second question, your benefit will, indeed, continue to grow if you wait until you are age 70 to claim Social Security. Benefits taken after one’s full retirement age earn “delayed retirement credits” (DRCs), which add to your final benefit amount. Your benefit will still be reduced by WEP, but your final amount will be more because you waited longer to claim. 

Re your third question, your SS benefit will only be reduced (not eliminated), so it’s always worthwhile to apply. Otherwise, you are forfeiting Social Security money you are entitled to. 

And lastly, if your wife dies before you, your CSRS pension will also cause another provision called the Government Pension Offset (GPO) provision to apply. The GPO will reduce your surviving spouse benefits by 2/3rds of the amount of your government CSRS pension, which will likely eliminate any spousal benefit you are entitled to (except the so-called “death benefit” – which is a one-time lump sum $255 benefit paid to a surviving spouse).  

Thank you for submitting your question to our Social Security Advisor department. Be sure to share our link with your family and friends. 

This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at [email protected].