Most people are not sure about what they are likely to get regarding monthly pension from Social Security and CSRS, and this typically leads to a lot of confusion. However, there is no need to worry- it is possible to estimate your off-set amount and annual annuity accurately.
To begin with, you can get your annuity estimate from your HR office. The HR office has the responsibility of ensuring that you have access to your annuity estimate anytime you need it. However, it is important to point out that OPM has the final say when it comes to your annuity payments as the HR office only provides estimates.
As long as the agency has all the required information from the employee, its estimates can be very accurate. The calculation of Offset retirements is similar to a full CSRS annuity computation. The amount of the SS benefit is usually reduced from Offset retirements depending individuals Offset service.
Although the computation of Offset and CSRS is almost similar, offset retirement ends up being the lesser amount because of the deductions. You have to divide an employee’s offset service by 40 to determine the factor that is multiplied by the full SS benefit when finding the difference between the SS benefit without the offset time included and the total SS benefit with offset.
The smaller offset amount is attributed to the use of the factor in the computation. Credit for unused sick leave is part of the factor that is used in the computation of the monthly service for annual salary changes. An annuity can only be calculated using months of service and full years. In this case, odd days are not considered in the calculation. On the other hand, you can sign up for an annual statement on official Social Security website to get an accurate Social Security figure.
According to the current law, you must be ready for a reduction in your annuity if you qualify to receive SS benefits. Drawing SS benefits at that particular time do not exempt you from the annuity reduction. Also, those drawing on their spouse’s record have to face a similar fate. Your service record determines what you will receive from SSA and this forms the basis for your Offset amount. Therefore, an Offset retiree can take the SS benefit after 62 or at 62 years when they are retiring.