How do you report when you exceed the FERS supplement limits?

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If a FERS retiree left federal service in 2017, was eligible for and received the supplement throughout 2018, but takes a job in 2018 earning a salary above the limit thus failing the earnings test – who should he notify of employment earnings? And, Once it is determined that 2018 earnings were too high, does he have to pay back the excess?

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Asked on September 28, 2018 2:56 pm
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Technically, the FERS Retiree Annuity Supplement earnings test can run up to a year behind because income is reported after it has been earned. There’s really no test until year 2 of retirement, meaning that even if you retire at your MRA and get a big money job, you might get the supplement for up to a year because under OPM rules the annual earnings reduction cannot exceed the total annuity supplement to which the individual was entitled to in the first year. After your first year, OPM will send you Form RI 92-22, “Annuity Supplement Earnings Report.” It’s a simple one-page form with 4 questions. You report to OPM all of your earned (nonpassive) income. OPM cross-matches your responses with Social Security’s earnings. They will stop your supplement, confirming it with a letter, and there will be no money owed as it is based on the previous year’s earnings.

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Posted by (Questions: 0, Answers: 353)
Answered on October 1, 2018 12:16 am