Last Updated: October 25, 2026 Reading Time: 7 min

The FERS supplement earnings limit for 2027 is $25,560, up from $24,480 in 2026. The Social Security Administration published the number in its 2027 determinations notice, which appears in the Federal Register on October 26, 2026, and OPM's earnings test borrows it directly.

If you retired before 62, collect the supplement and plan to work in 2027, this is the number to plan around. Earnings above it don't cut your checks right away. They cut them starting in July 2028.

What SSA Published for 2027

SSA's notice for 2027 sets these figures (91 FR 67380, FR Doc. 2026-21796):

Figure 2026 2027
Earnings-test exempt amount, under full retirement age (annual) $24,480 $25,560
Same, monthly $2,040 $2,130
Exempt amount in the year you reach full retirement age (annual) $65,160 $67,920
Social Security wage base $184,500 $192,300
One Social Security credit (quarter of coverage) $1,890 $1,970
SSDI substantial gainful activity, non-blind (monthly) $1,690 $1,770

The FERS supplement uses only the first line. Everyone who gets the supplement is under 62, so the lower, under-full-retirement-age amount is the one that applies. The $67,920 figure doesn't apply to the supplement.

How the FERS Supplement Earnings Test Works

The test is in 5 U.S.C. § 8421a. It uses Social Security's definitions of "earnings" and "exempt amount," and cuts your supplement by half of what you earned above the exempt amount.

Three rules shape when and how much:

  • It's annual, not monthly. OPM compares your 2027 earnings to the $25,560 annual amount, counting only earnings from the period when you were entitled to the supplement (and, for special-provision retirees, not earnings before your MRA). The $2,130 monthly figure is a Social Security detail that doesn't change the supplement math.
  • The cut comes later. OPM tests 2027 earnings in 2028, and the reduction applies to the 12 months starting the following July, July 2028 through June 2029, but only while you're still entitled. In the year your supplement ends, OPM divides by the number of months it's payable that year instead of 12 (5 CFR 842.505(a)(2)).
  • It can't go below zero. The yearly reduction is normally spread over 12 months (fewer in the year the supplement ends), and the monthly cut can never take more than the full supplement (5 CFR 842.505).

What a 2027 job does to your supplement

2027 earnings Amount over $25,560 Yearly reduction Monthly cut, July 2028 to June 2029
$25,560 or less $0 $0 $0
$30,000 $4,440 $2,220 $185
$40,000 $14,440 $7,220 $602
$50,000 $24,440 $12,220 $1,018

The monthly column assumes 12 months of entitlement: it's the yearly reduction divided by 12, rounded to the dollar, and it's capped at your supplement amount. If your supplement is $800 a month, the $50,000 row zeroes it out rather than going negative.

Example. Dana retired at 57 with a $950 monthly supplement and takes a consulting job paying $35,560 in 2027. That's $10,000 over the limit, so the yearly reduction is $5,000, or about $417 a month. From July 2028 through June 2029, her supplement drops from $950 to $533.

What Counts as Earnings

OPM uses Social Security's definition: wages from a job plus net earnings from self-employment (20 CFR 404.429). These don't count:

  • Your FERS annuity
  • TSP withdrawals
  • Interest, dividends and capital gains
  • Any other income that isn't wages or net self-employment income

If you work for yourself, it's your net profit after business expenses that counts, not your gross receipts.

Who's Exempt Before Their MRA

If you retired under one of the provisions below, earnings before your minimum retirement age don't reduce your supplement at all (5 U.S.C. § 8421a(b)(4)(B)(ii); 5 CFR 842.502). The exemption covers retirements under:

  • 5 U.S.C. § 8412(d)(1): law enforcement officers, firefighters, nuclear materials couriers, Customs and Border Protection officers, Capitol Police and Supreme Court Police, at 50 with 20 years or at any age with 25
  • 5 U.S.C. § 8412(e): air traffic controllers
  • 5 U.S.C. § 8414(c): mandatory separation of military reserve technicians

Once you reach your MRA, the regular test applies. In the year you reach it, only earnings after that date count.

Retired air traffic controllers working certain FAA contract instructor or contract controller jobs are outside the test even after their MRA (5 U.S.C. § 8421a(c)). Our 6(c) exemption guide walks through the special-provision rules in detail.

When the Supplement Starts and Stops

  • It stops at 62, at the end of the month you turn 62 (or earlier if you could first collect Social Security sooner), whatever you earn.
  • VERA and discontinued service retirees don't get the supplement until they reach their MRA. Special-provision retirees get it from retirement.

So the earnings test matters most in the years between your MRA (or retirement, if you're special-provision and past MRA) and 62.

The 2027 Wage Base, for High Earners

Federal employees under FERS pay the 6.2% Social Security tax on wages up to the base. In 2027 the base is $192,300. Once your 2027 Social Security wages reach it, the 6.2% stops for the rest of the year.

Your pre-tax FEHB premium comes out of your Social Security wages (5 CFR 892.102), so it lowers the amount that counts toward the base. A GS-15 paid at the 2026 pay cap of $197,200 (if 2027 pay stays at 2026 rates) who pays FEHB premiums pre-tax may never reach $192,300 in Social Security wages.

If your Social Security wages exceed both bases, you pay $483.60 more in Social Security tax for 2027 than for 2026 ($7,800 × 6.2%).

Estimate Your Supplement

Our free FERS Supplement Calculator estimates your supplement from your age, service and Social Security estimate, and shows how earnings above the limit reduce it. It currently applies the 2026 limit of $24,480, so for 2027 earnings, use the table above or add $1,080 to the limit it shows.

Frequently Asked Questions

What is the FERS supplement earnings limit for 2027?

$25,560. That's Social Security's 2027 annual exempt amount for people under full retirement age, which the FERS supplement earnings test uses. For every $2 of countable 2027 earnings above it, your supplement is reduced by $1, starting with payments in July 2028.

When does a 2027 reduction show up in my supplement?

OPM tests 2027 earnings in 2028. Any reduction applies to monthly payments from July 2028 through June 2029 while you remain entitled; if your supplement ends in that period, the final-year math uses the number of months it's payable.

Does the $2,130 monthly limit apply to my supplement?

No. The FERS supplement test compares your countable 2027 earnings (earnings from the period you were entitled to the supplement, excluding pre-MRA earnings for special-provision retirees) to the $25,560 annual amount. The monthly figure is part of Social Security's own rules.

Do TSP withdrawals or my FERS annuity count as earnings?

No. Only wages and net self-employment income count. Your annuity, TSP withdrawals and investment income don't.

I retired as a law enforcement officer at 50. Does my 2027 job reduce my supplement?

Not before your minimum retirement age. Special-provision retirees under 5 U.S.C. § 8412(d)(1) or (e), and reserve technicians under § 8414(c), have earnings before their MRA excluded from the test.

What is the 2027 Social Security wage base?

$192,300, up from $184,500 in 2026. FERS employees stop paying the 6.2% Social Security tax for the year once their Social Security wages reach it.

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