Offset and Its Impact on CSRS and FERS Employees

Does the offset impact FERS employees or just those in the Civil Service Retirement System?

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.