FERS Annuity Supplement (the Social Security Bridge)
The FERS Annuity Supplement is a monthly payment from OPM approximating the Social Security benefit you earned during federal service. It bridges the gap between MRA and age 62. Paid under 5 U.S.C. § 8421; stops the last day of the month before you turn 62.
Most federal retirees know the supplement exists. Few understand the earnings test trap that can erase it overnight when they take a second-career consulting role.
Reviewed by Jonathan Teplitsky · Updated June 2026
Who qualifies
Immediate-pay paths:
- MRA + 30 years
- Age 60 + 20 years
- LEO/FF/ATC meeting the 20/25-year service rule
Delayed-pay paths (supplement begins at MRA):
- DSR
- VERA
NOT eligible:
- MRA + 10
- Deferred retirees
- FERS Disability
- CSRS retirees (FERS-only)
- Anyone retiring after 62
How it's calculated
Estimated SS at age 62 × (FERS years ÷ 40) = monthly supplement
Note: divisor 40, not 35 that SS uses. Formula prorates a 40-year career using federal service only.
Example
Retire at MRA with 25 years FERS service. SS Statement shows estimated 62 benefit $2,200/mo. $2,200 × (25 ÷ 40) = $1,375/mo supplement. Outdated statement can underestimate by 10-20%.
The earnings test (where retirees get burned)
Subject to the same earnings test as early SS:
- 2025 exempt: $23,400
- 2026 projected: ~$24,300
- Reduction: $1 per $2 over
- Reported on annual OPM survey; takes effect July following
- NOT applied in year you reach MRA — only subsequent years
What counts
W-2 wages and self-employment net earnings. NOT: FERS annuity, TSP withdrawals, SS benefits, investment/capital gains/dividends/interest, rental income, other-employer pensions.
The consulting trap
Federal retiree at MRA takes $90,000 consulting role in 2026: ~$65,700 over limit → $32,850 annual reduction. Erases a typical supplement. Many retirees discover this only when July check stops arriving. Plan around the threshold or accept supplement is out of the post-retirement income mix.
Special-category exemption (LEO/FF/ATC)
Earnings test does NOT apply until you reach MRA. A 50-year-old LEO can earn unlimited for ~7 years before the test kicks in at 57. Major value, frequently overlooked.
When it stops
- Last day of month before turning 62 — automatic.
- You die. NO survivor option.
- Earnings test zeros it out.
Tax treatment
Fully federal ordinary income. Most states tax it. No-income-tax states (FL, TX, TN) and broad federal pension exclusions (PA, IL) provide relief. OPM withholds federal per W-4P.
Documentation
- Pull a current statement at ssa.gov/myaccount.
- Confirm all federal service credited correctly.
- Verify estimated age-62 benefit reflects earnings through retirement.
Related planning
Sources: OPM, SSA earnings limits.