FERS Supplement Eligibility: Complete 2026 Guide
Who qualifies for the FERS supplement, how much you get, and who is excluded. Calculation formula, examples, earnings test, and the 29 vs. 30 year cliff.
FERS Supplement Eligibility: Complete 2026 Guide
Last Updated: February 8, 2026 Reading Time: 11 min
The FERS Special Retirement Supplement can be worth $800 to $1,500 per month. Roughly half of FERS employees who think they qualify actually don't. The eligibility rules are not intuitive, and one wrong assumption about your years of service can cost you six figures. This guide breaks down who qualifies for the FERS supplement, who is excluded, how to calculate your amount, and the retirement timing decisions that matter most.
Key Takeaways
- You must retire on an immediate, unreduced FERS annuity before age 62 to qualify
- MRA+10 retirees are completely ineligible, even if they postpone their annuity
- The difference between 29 and 30 years of service at MRA can mean $50,000 to $100,000 in lost supplement income
- The 2026 earnings test limit is $24,480 (only wages and self-employment count, not TSP or investment income)
- The supplement gets no COLA, so inflation erodes it every year until it ends at age 62
- Use the FERS Retirement Calculator to see how the supplement fits into your total retirement income
Who qualifies for the FERS supplement
The supplement goes to FERS employees who retire before age 62 on an immediate, unreduced annuity. Those three words do all the work. If your retirement is not immediate, or if it carries an age reduction, you are out.
| Retirement type | Requirement | Supplement starts |
|---|---|---|
| Voluntary, MRA + 30 years | MRA (55-57) with 30+ years | At retirement |
| Voluntary, age 60 + 20 years | Age 60-61 with 20+ years | At retirement |
| Special provision (LEO/FF/ATC) | Age 50 with 20+ years, or any age with 25+ years | At retirement |
| VERA (early retirement authority) | Any age, agency authorization | At MRA (not at retirement) |
| Involuntary (RIF) | Before MRA, due to RIF or reorganization | At MRA (not at retirement) |
One additional requirement: you must have at least 1 full calendar year of civilian service creditable under FERS computation rules.
If your annuity has a CSRS component (transferred employees), you can still qualify as long as you completed one full calendar year under FERS.
VERA and involuntary retirees, read carefully: You qualify, but the supplement does not start until you reach your MRA. If you take VERA at age 52 and your MRA is 57, you have a 5-year gap with zero supplement income. Plan for that.
Who does NOT qualify
| Category | Why |
|---|---|
| MRA+10 (immediate or postponed) | Annuity is reduced for age, not an unreduced retirement |
| Disability retirement | Separate benefit category, supplement explicitly excluded |
| Deferred retirement | Not immediate, benefits start years after separation |
| Postponed MRA+10 | Even avoiding the 5% reduction, still ineligible |
| Age 62+ at retirement | Already eligible for Social Security |
| Age 60-61 with under 20 years | Does not meet the 20-year threshold |
| CSRS-only employees | Not covered under FERS |
For more on the deferred and postponed distinction, see our deferred vs. postponed retirement guide.
The 29 vs. 30 year cliff
If you only read one section of this article, make it this one.
An employee who retires at MRA with 29 years falls under MRA+10 rules. Their annuity is permanently reduced by 5% per year under age 62. They get no supplement at all.
An employee who retires at MRA with 30 years gets a full, unreduced annuity plus the full supplement until age 62. One year. That is the difference.
| 29 years at MRA (age 57) | 30 years at MRA (age 57) | |
|---|---|---|
| Annuity | Reduced 25% (5 years x 5%) | Full, unreduced |
| Supplement | None | $1,200/month (example) |
| Supplement value to age 62 | $0 | $72,000 |
| Combined cost of leaving 1 year early | $100,000+ | -- |
If you are at 28 or 29 years and approaching your MRA, stay. The math is not close. One more year of federal paychecks plus $50,000 to $100,000 in supplement income is not a tradeoff most people need to think about for long.
How the supplement is calculated
The formula:
FERS Supplement = Estimated Social Security benefit at age 62 x (Years of FERS civilian service / 40)
Step by step:
- Go to ssa.gov/myaccount and get your Social Security Statement
- Find the "At age 62" monthly benefit estimate on page 2
- Count your years of FERS civilian service (rounded to nearest full year)
- Divide your FERS years by 40
- Multiply that by your age-62 SS estimate
Example calculations
Sarah, MRA (57) with 30 years, SS estimate $2,000/month:
- $2,000 x (30/40) = $1,500/month for 5 years = $90,000 total
Tom, age 60 with 20 years, SS estimate $1,800/month:
- $1,800 x (20/40) = $900/month for 2 years = $21,600 total
Officer Martinez, age 50 with 25 years LEO, SS estimate $1,600/month:
- $1,600 x (25/40) = $1,000/month for 12 years = $144,000 total
Lisa, VERA at age 52, MRA is 57, 27 years, SS estimate $1,900/month:
- $1,900 x (27/40) = $1,282/month, but not paid until age 57
- Paid from 57 to 62 = 5 years = $76,920 total
- Gap with no supplement: age 52 to 57
What does NOT count toward the formula
- Military service (even if bought back via deposit)
- Unused sick leave credit
- Non-FERS civilian service
- Part-time service may be prorated
This trips up a lot of people: buying back military time increases your FERS pension, but it does not increase your supplement. The supplement formula only counts civilian FERS years.
A note on OPM's actual calculation
OPM does not simply use your SSA statement number. OPM independently computes your estimated Social Security benefit using your actual FERS-covered earnings. Your SSA estimate is close enough for planning, but the final number may differ slightly because SSA includes all covered earnings (private sector, military) while OPM isolates your FERS-covered service.
When the supplement starts and stops
The supplement ends on the last day of the month you turn 62. No exceptions. Whether or not you actually file for Social Security at that point is your choice.
When it starts depends on how you retired:
| Scenario | Starts |
|---|---|
| MRA+30 or Age 60+20 | First month of retirement |
| Special provision (LEO/FF/ATC) | First month of retirement |
| VERA (retired before MRA) | When you reach MRA |
| Involuntary/RIF (before MRA) | When you reach MRA |
One thing to plan for: OPM typically takes 3 to 6 months to finalize retirement cases, and the supplement is not included in interim payments. Once your case is finalized, you get back pay for all missed months. But that means 3 to 6 months of smaller checks upfront.
The income cliff at 62
When the supplement ends, your monthly income drops by the full amount. If your supplement is $1,200/month, that is a $14,400/year cut.
You have three options at 62:
| Option | What happens |
|---|---|
| Claim Social Security at 62 | Receive about 70% of your full benefit, permanently reduced |
| Wait until 67 (full retirement age) | No SS income for 5 years, but 100% of your full benefit |
| Wait until 70 | No SS income for 8 years, but 124% of your full benefit |
For most FERS retirees with a healthy TSP balance, delaying Social Security past 62 is the better long-term play. The breakeven is typically around age 80 to 82, which is below average life expectancy. But it depends on your savings, health, and whether you can stomach a few years of lower income for a permanently higher benefit. See our tax planning guide for federal retirees for more on timing this decision.
The earnings test: 2026 rules
If you work after retiring, the earnings test can reduce or eliminate your supplement.
2026 limit: $24,480. For every $2 you earn over this limit, your supplement drops by $1.
Only earned income counts. Here is what is safe:
| Reduces your supplement | Does NOT reduce it |
|---|---|
| W-2 wages, salary, bonuses | FERS pension/annuity |
| Self-employment net income | TSP withdrawals |
| Consulting fees | Investment income (dividends, capital gains) |
| Rental income | |
| Lump-sum annual leave payout |
The earnings test does not apply until you reach your MRA. Special provision employees (LEO, FF, ATC) who retire before their MRA can earn unlimited income with no reduction until they hit MRA.
The test operates on a delay: your 2026 earnings are surveyed by OPM in spring 2027, and reductions begin with your July 2027 payment.
For a deep dive on the earnings test, see our FERS Supplement Earnings Limit 2026 guide.
Special provision employees: LEO, firefighter, ATC
If you are LEO, firefighter, or ATC, you have the best supplement deal in the federal system.
| Advantage | Detail |
|---|---|
| Earliest start | Can receive supplement from age 50 |
| Longest duration | Up to 12 years (age 50 to 62) |
| Earnings test exemption | No earnings test until MRA (typically 55-57) |
| Higher pension multiplier | 1.7% for first 20 years vs. 1% for regular FERS |
An LEO who retires at 50 with 25 years could receive $1,000/month for 12 years. That is $144,000 in supplement income, and the first 5 to 7 years of it are completely exempt from the earnings test. You could pull in a six-figure second career salary and keep every dollar of your supplement.
If you are a special provision employee considering early retirement under VERA/VSIP, the supplement should be a major factor in your decision.
No COLA means inflation eats your supplement
Unlike your FERS pension, the supplement gets zero cost-of-living adjustments. The amount OPM calculates at retirement is the amount you receive until age 62.
At 3% annual inflation, a $1,200/month supplement loses about $36/month in purchasing power each year. After 5 years, it buys roughly 14% less than it did when you retired. After 10 years (for a special provision retiree), roughly 26% less.
Worth factoring into your retirement budget. The supplement feels like a fixed income stream, but in real purchasing power, it shrinks every year.
The supplement is 100% taxable
The FERS Supplement is taxed as ordinary income at the federal level. All of it. Social Security, by contrast, is only up to 85% taxable depending on your total income. So the supplement actually has a worse tax deal than the benefit it is meant to replace.
The supplement does not trigger FICA or Medicare taxes (it is not earned income). State taxation varies. States with no income tax (Florida, Texas, Nevada, etc.) do not tax it.
When the supplement ends at 62 and Social Security begins, the shift in tax treatment can affect your bracket, your IRMAA premiums, and your Roth conversion strategy. Plan ahead.
Estimate your FERS supplement
The FERS Retirement Calculator estimates your FERS pension, the supplement, and how they fit together with TSP and Social Security. Run your numbers before making retirement timing decisions. Try it now.
Frequently asked questions
Who is eligible for the FERS Special Retirement Supplement?
You must retire on an immediate, unreduced FERS annuity before age 62. That includes MRA with 30+ years, age 60 with 20+ years, special provision employees at age 50 with 20+ years, and VERA retirees. MRA+10, disability, deferred, and postponed retirees are not eligible.
How is the FERS Supplement calculated?
The formula: (Estimated Social Security benefit at age 62) x (Years of FERS civilian service / 40). Only civilian FERS service counts. Military buyback and sick leave credit do not increase the supplement.
Do MRA+10 retirees get the FERS Supplement?
No. If you retire at MRA with 10 to 29 years of service, you are ineligible. Even postponing your annuity to avoid the 5% reduction does not make you eligible. The difference between 29 and 30 years at MRA can mean $50,000 to $100,000 in lost supplement income.
Does the FERS Supplement get COLA adjustments?
No. The amount is fixed from retirement to age 62. Inflation erodes its value every year.
What is the 2026 FERS Supplement earnings limit?
$24,480. Earn more than that in wages or self-employment, and your supplement is reduced by $1 for every $2 over the limit. TSP withdrawals and investment income do not count. Full earnings test guide here.
Does military buyback increase my FERS Supplement?
No. Military buyback increases your FERS pension but does not count toward the supplement formula, which only uses civilian FERS years divided by 40.
Is the FERS Supplement taxable?
Yes, 100% of it is subject to federal income tax as ordinary income. This is worse than Social Security, where only up to 85% may be taxable. It is not subject to FICA or Medicare taxes.
Related resources
- FERS Retirement Calculator: Estimate your pension, supplement, and total retirement income
- FERS Supplement Earnings Limit 2026: Deep dive on the earnings test rules
- Best Dates to Retire 2026: Timing your retirement for maximum benefit
- VERA/VSIP Guide 2026: Early retirement and buyout eligibility
- Deferred vs. Postponed Retirement: Why these retirees don't get the supplement
- Tax Planning for Federal Retirees: Managing taxes across retirement income sources
Sources
Calculate Your 2026 Numbers
Estimate your federal pension and retirement income
Open FERS Retirement Calculator