Estimating the amount of an annuity is not particularly difficult. Estimating the Social Security benefit? Social Security will be glad to provide you an individualized estimate of your age 62 benefit, upon request.
However, neither the Social Security estimate nor the annuity itself is related to the annuity supplement. The supplement is calculated and paid by the Office of Personnel Management (OPM), in accordance with different rules.
The Social Security estimate:
- Includes both FERS and non-FERS earnings, in contrast to the OPM calculation, which is FERS only
- Includes earnings prior to age 22, not allowed in the OPM calculation
- Projects (i.e., guesses) how much you will earn in future years, not allowed with OPM
- Fails to “deem” earnings for incomplete years, but OPM does this.
In view of the above, estimates of the annuity supplement attempting to use the Social Security estimate are questionable, at best.
So, for retirements in 2017, how much is the maximum annuity supplement? These variables must be used for the calculation:
- Annual salaries not to exceed the individual Social Security maximum, for all full years as a FERS employee
- Total years of FERS service
- Age at retirement, which pro-rates the hypothetical age 62 benefit
- The Social Security PIA formula, which favors lower earnings.
The only reliable, accurate source for the maximum is software. Please see the attached, documenting a maximum of $1,820 per month.
Readers can get a complimentary copy of the software used for this calculation, from firstname.lastname@example.org (sent to non .gov addresses, only).