Q: I am going to retire when I am 62 in roughly 2 1/2 years. I will receive my FERS retirement, a small retirement from North Carolina that is similar to FERS and my TSP annuity. Will any of these “retirement” payments affect my Social Security benefit that I also plan on applying for at 62?
A: Income derived from your TSP will not affect your Social Security benefit.
3 Comments
Answer is incomplete since it only address TSP. The Windfall Elimination Provision might very well apply. That, of course, would reduce the Social Security benefit.
The “affect” you refer to is the Windfall Elimination Provision (WEP) which is an alternative benefit calculation. The FERS and TSP will not cause WEP. The North Carolina pension may, depending on whether that employment was covered (you paid OASDI taxes) under Social Security while you worked there.
Seems great that FERS is not affected, but I worked 22+ years under social security, yet because I receive a CRS annunity, I am only able to receive a small percentage of my 22+ years of contributions to social security benefits. When is this going to be corrected? There are non-citizens who are receiving benefits from social security, yet they have made no contribution. Not fair to those of us to contributed.