I retired with a (gross) $4600 per month Civil Service Retirement System (CSRS) annuity from the US Postal Service in December 2022. I am 66 and will attain full retirement age in November of this year. I know at that point I will not be subject to the “earnings” test, but I will be affected by the dreaded “government offset.” I HAVE earned enough quarters and will be eligible for a small social security benefit. First question: will my Social Security benefit just be reduced, or will it be eliminated? Second: will it make a difference if I apply in November or when I turn 70? I am currently working parttime and paying Social Security FICA taxes. Third: if my SS is being eliminated, do I even have to apply? Fourth and last: I am married, filing jointly and my wife is currently receiving SS benefits (only). Could I also be affected by the “windfall” provision if my wife predeceased me? Signed: Upset to Offset and Downfall to Windfall 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 ...
