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The Federal Employees Retirement System (FERS) Supplement is a benefit that provides additional retirement income to eligible federal employees who retire before becoming eligible for Social Security. The supplement is designed to bridge the gap between the time of FERS retirement and the time when Social Security retirement benefits begin. The question that has been on the minds of federal employees for quite some time now is whether the FERS Supplement is going away, and if so, when.
The short answer is that the FERS Supplement is not going away in the immediate future. However, there has been some discussion about potentially phasing out the benefit for future federal employees. This is part of larger discussions about reforming the federal retirement system to address some of the financial challenges facing the federal government.
The current understanding is that the FERS Supplement will remain in place for those who are currently eligible for the benefit. However, those who are not yet eligible for the benefit may see changes to the program in the coming years. Some proposed changes have included reducing the benefit for those who retire after a certain date, or only providing the benefit to those who meet certain criteria.
As for when these potential changes could take place, it’s difficult to say. While some lawmakers have expressed a desire to reform the federal retirement system, it’s unclear if and when those reforms will actually be implemented. Some proposals have suggested changes could take place as soon as 2023, while others speculate it may take several years for any changes to take effect.
It’s worth noting that the FERS Supplement is just one part of the federal retirement system, and any changes to this benefit would likely be part of larger reforms to the system as a whole. Federal employees should stay informed about potential changes to the system, and consult with retirement specialists to ensure they are making the best decisions for their own retirement plans.
In conclusion, while the FERS Supplement isn’t going away in the immediate future, there is potential for changes to be made to the benefit for future federal employees. As with any potential changes to retirement benefits, federal employees should stay informed and be proactive in planning for their retirement.
Vote Democrats out
I split at 57 yrs old and have no regrets….Now if you leave early and you take the supplement you are not entitled to cost of living increases until you turn 62. So make sure you have some extra mulla $$$ put away just in case !!!!
If the FERS supplement go away I can’t afford to retire. I have no money to live on unless I work.
I usually agree and applaud everything you say and advocate on your videos. That being said, I have 2 years, 11 months till my MRA (4 years active duty and 32 years civil service). You commenting that you need "wiggle room” because things may "change”. Ah….if the FERS supplemental went bye-bye, I would NOT be able to retire at MRA because I would loose $2200/month from 56 to 62. I believe losing $2200/month is more than ANYONE can overcome and shouldn't be in the same breath as "wiggle room”. Just about anyone can overcome 300-500/month, but losing out and changing the rules were you lose $2200/month is not overcomable.
Aren’t they trying extremely hard to compete with the private sector for talent? It seems like all the benefits are not what they used to be. Even if you retired after 30 years at 62 and your high 3 average was 150k, which is way more than most make there, you are looking at a pension of only $49,500, which is literally only 1/3 of your salary to live on. You would need to be maxing out the TSP the whole time to compensate for that, but those fees have increased to be now less competitive than private sector 401k expense ratios and also, most employees do not make enough to max it out. In the private sector you can make well over 200k for a lot of the same roles whereas in the feds you won’t touch 200k ever. What incentive is there to go federal versus private sector then if the few perks making the difference are being dwindled away slowly? Also, medical benefits for those I know in the feds cost literally 2x what my private sector friends pay. Lets also not forget if Social Security will even exist by then which they tell FERS employees they will need to rely on as part of their retirement
Hi, I turned 62 May 2023. I still received my FERS supplement on June 1st. I am eligible for SS payments to start July 2023. So was June 2023 last FERS supplement? Thanks
My recommendation; fund that tsp as much as you can.
STOP voting Democrat.
So you are bringing this up. So yes it could happen. It’s been talked about for a few years. So have you heard something new? I’m retiring next year. Age 58 with 36 years. Depending on the supplement
It should go away once they allow us to withdraw from social security early.
If there are such changes, I think they would be for new employees. There would be a massive retirement landslide as employees would rush to get out the door before it became effective, if something like the "High 3" was changed to a "High 30" for current employees. If something like that did happen, I also think there would be a bunch of litigation.
Being a Federal employee become a shittier deal with every passing year
I'm not convinced there will be much left by the time I retire.
We are going to end up working till we drop dead.
I make almost nothing on my FERS annuity! The main part of my retirement will be my TSP once I tap into it!
"Oh, I hope not!" – Jose Jimenez
Hopefully if they take away some of the Federal benefits it will be phased in over a long time or will apply to newly hired Federal Employees. Due to high inflation .. must federal employees under FERS should and probably need to work till 62 .. and not any time sooner.
I will forever be indebted to you you've changed my whole life continue to preach about your name for the world to hear you've saved me from a huge financial debt with just little investment, thanks so much Mrs. Debra Hindman
The Supplement is part of how my retirement is calculated. Special Category Employee unfortunately there is no wiggle room.
Everything changes eventually, be ready just in case….
Let's keep giving Ukraine hundreds of billions of dollars!!
The High 3 Versus High 5 comes up allot. Many FEDS after 25 plus years are at the top of their grade (say a 13/10 for example) and have been for years; would make little to no difference but likely not happening. The FERS Supplement was put in place mainly for people who were forced to retire before eligible for Social Security; not going anywhere anytime soon. What is forgotten is how newer FEDS are being screwed over with increased FERS contributions.
I'm curious about all the money we put into FERS during our tenure with the Federal Government. Will Federal Retirees get a refund, or would that be gone with zero recourse/reimbursement?
Just to be clear the Supplement going away wouldn't be a small change!!!
I heard in a retirement seminar that the FERS supplement was created to benefit members of Congress who wanted to retire early.