The Federal Employees Retirement System (FERS) annuity supplement is a special benefit payable to eligible FERS employees who retire before age 62 and have completed at least 30 years of service, or have reached their Minimum Retirement Age (MRA) with at least 30 years of service, or have reached age 60 with at least 20 years of service. It approximates the Social Security benefit earned during federal service. Its computation involves a complex formula based on creditable service, estimated Social Security benefit at age 62, and other factors. This calculation aims to provide an income bridge between retirement and Social Security eligibility.
This supplemental income plays a vital role in ensuring financial stability for early retirees. By providing a stream of income before Social Security benefits commence, it allows individuals to retire earlier without a drastic reduction in their living standards. Historically, this provision was designed to encourage earlier retirement and incentivize employees to remain in federal service long enough to qualify, contributing to workforce renewal and efficiency. The supplement’s existence underscores the federal government’s commitment to its employees’ retirement security.
