The following is from the Akron Beacon Journal and is written by Joe Paukovich, Social Security Administration, Akron, Ohio
Q: I am retiring from the U.S. Postal Service with a Federal Employee Retirement System (FERS) pension. Friends who called the Social Security office were told that our pension must be reported for a pension offset. I thought only Civil Service Retirement System (CSRS) pensions were subject to offset provisions. Is there a deduction from Social Security for FERS pensions?
A: You are correct. People eligible under FERS paid Social Security taxes on their wages and are not subject to the public-pension offset provisions. Federal workers covered under CSRS do not pay Social Security taxes on their wages and are subject to a public-pension offset. Federal employees hired since the mid-1980s are covered by FERS.