CSRS offset calculation

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Topic Author
mookie
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Joined: Sun Jul 12, 2015 1:35 pm

CSRS offset calculation

Post by mookie »

Does anyone have a formula or online calculator to determine the CSRS offset amount?
stan1
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Joined: Mon Oct 08, 2007 4:35 pm

Re: CSRS offset calculation

Post by stan1 »

This CSRS offset? I'm not sure what you mean by calculation since your pension is the CSRS pension, less payments by social security.

https://www.opm.gov/faqs/QA.aspx?fid=73 ... 3ca9949785


Or did you mean FERS supplement?
retiredjg
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Re: CSRS offset calculation

Post by retiredjg »

I think there was a time during the transition from CSRS to FERS where people were put in the "CSRS offset" category or something like that....about 1984. But I think those people were eventually moved into FERS...so that might not be what you are asking about.

Maybe you can tell us more about what you mean.
Topic Author
mookie
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Joined: Sun Jul 12, 2015 1:35 pm

Re: CSRS offset calculation

Post by mookie »

Thanks for your replies. Here is the clarification: For a (now retired) employee in the "CSRS Offset" category, how does one determine the amount that the CSRS gross monthly annuity is reduced by due to social security? Is it the amount of the social security benefit earned while working for the government?

What if one's social security benefit varies over time, for example is reduced due to Medicare Part B IRMAA? Would one's CSRS annuity amount increase then, because the social security benefit amount decreased?
Katietsu
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Re: CSRS offset calculation

Post by Katietsu »

Honestly, I was unaware of this niche category of federal retirees. This article seems to explain it well:
https://www.fedweek.com/retirement-bene ... t-annuity/

As far as IRMAA is concerned, I have no special knowledge. But I believe IRMAA is an increase in the medicare premium not a reduction in social security payments. Therefore, I would think that IRMAA would have no impact on the amount of the CSRS payment.
stan1
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Joined: Mon Oct 08, 2007 4:35 pm

Re: CSRS offset calculation

Post by stan1 »

OPM and SS have had 35 years to plan for this, hopefully they've figured out how to share enough data so that it gets done right.

My read is that SS is basically the first payer based on the amount of the benefit you'd get from your lifetime contributions to SS, then OPM pays the balance of the CSRS pension you are entitled to.
UpperNwGuy
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Re: CSRS offset calculation

Post by UpperNwGuy »

Log into your account at OPM Retirement Services Online. Look at the menu on the left hand side of the screen. Click on Documents. When the next screen comes up, click on Request Booklet. They will mail you a booklet that explains your situation.

If you want pure theory, as opposed to how OPM handled your situation, the benefits team at the National Association of Active and Retired Federal Employees has information that you might find useful. Also, the Fedweek Weekly Newsletter advertises various publications that lay all this stuff out.

Here's an example:
https://www.fedsmith.com/2016/06/26/csr ... alculated/
delamer
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Re: CSRS offset calculation

Post by delamer »

mookie wrote: Tue Oct 12, 2021 7:46 pm Thanks for your replies. Here is the clarification: For a (now retired) employee in the "CSRS Offset" category, how does one determine the amount that the CSRS gross monthly annuity is reduced by due to social security? Is it the amount of the social security benefit earned while working for the government?

What if one's social security benefit varies over time, for example is reduced due to Medicare Part B IRMAA? Would one's CSRS annuity amount increase then, because the social security benefit amount decreased?
Your gross SS benefit isn’t reduced with IRMAA. Your deductions from gross are just increased.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. | | Alexandre Dumas, fils
Topic Author
mookie
Posts: 195
Joined: Sun Jul 12, 2015 1:35 pm

Re: CSRS offset calculation

Post by mookie »

Thanks, these replies have been very helpful. Based on the information in the articles you've mentioned, it generally looks like the net CSRS annuity that OPM calculated is correct. Is the OPM usually correct in their calculations, or has anyone had an experience where they were wrong?
UpperNwGuy
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Re: CSRS offset calculation

Post by UpperNwGuy »

mookie wrote: Tue Oct 12, 2021 9:52 pm Thanks, these replies have been very helpful. Based on the information in the articles you've mentioned, it generally looks like the net CSRS annuity that OPM calculated is correct. Is the OPM usually correct in their calculations, or has anyone had an experience where they were wrong?
They are usually correct when it relates to issues like CSRS Offset where the situation is a standard one. They calculated my own pension incorrectly because they didn't understand my divorce decree, but that's a special situation that was unique to me.
delamer
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Re: CSRS offset calculation

Post by delamer »

mookie wrote: Tue Oct 12, 2021 9:52 pm Thanks, these replies have been very helpful. Based on the information in the articles you've mentioned, it generally looks like the net CSRS annuity that OPM calculated is correct. Is the OPM usually correct in their calculations, or has anyone had an experience where they were wrong?
I had a complex pension calculation (not related to CSRS offset), and OPM got the final amount right.

But I got an estimated annuity (which was very low) for 9 months before OPM got around to calculating the final amount. And that was only after the pension specialist at that agency I retired from intervened.

In other words, OPM was really slow.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. | | Alexandre Dumas, fils
Topic Author
mookie
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Joined: Sun Jul 12, 2015 1:35 pm

Re: CSRS offset calculation

Post by mookie »

I'm going to request the booklet from the online account, as suggested above. If I want to review my specific scenario and numbers with someone, do you recommend contacting OPM, my own employer, or hire an outside consultant?
delamer
Posts: 12491
Joined: Tue Feb 08, 2011 6:13 pm

Re: CSRS offset calculation

Post by delamer »

mookie wrote: Tue Oct 12, 2021 10:12 pm I'm going to request the booklet from the online account, as suggested above. If I want to review my specific scenario and numbers with someone, do you recommend contacting OPM, my own employer, or hire an outside consultant?
At my agency, you could request a pension estimate via the benefits portal on the intranet once you were within 5 years of retirement eligibility (and get an annual update).

This wasn’t from OPM, but from the agency. I assume they just plugged the employee’s information into a calculator and passed that along.

It’s a place to start.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. | | Alexandre Dumas, fils
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