What Is The Civil Service Retirement System Offset Exactly?

Many people do not know what CSRS Offset is, even some who are under this particular system. So what exactly is it?

The Offset is the reduction in your Civil Service Retirement System annuity, which is from the amount that you earned from your Social Security while under the CSRS Offset. If you earned more SS benefits from another job that was covered by Social Security, that would not be touched by this Offset.

So when does this Offset begin? The moment you are eligible for your SS benefits. Workers that retire at or before 62 years of age will see an automatic reduction when they reach the minimum age to receive Social Security benefits, which is 62. This reduction will still happen at 62, even if they do not claim SS payments.

This is why it is best for those under the Offset system that are retired before 62 to enroll for their Social Security payments months ahead of them becoming 62. If these retirees to not enroll for their SS benefits, their Civil Service Retirement System benefit would still be reduced.

If you plan to retire after the minimum age limit for SS benefits, the reduction will start once you claim retirement. It is still recommended that these individuals enroll for their Social Security payments months ahead of their retirement date so that their SS benefits will cover the reduction seen in the CSRS benefit.

Technically, what you should be receiving in benefits will not change or may even increase just a little when the Offset starts as the payments are just coming from two entities instead of just the pension.