FERS Supplement Earnings Test Calculator (2026)

Federal employees who retire before age 62 receive the FERS Annuity Supplement — a bridge payment approximating the Social Security benefit you earned during federal service. But if you work after retiring, the earnings test reduces your supplement $1 for every $2 you earn above the annual exempt amount. In 2026, that threshold is $24,480.¹

Enter your numbers below. The calculator shows your base supplement, how your planned earned income affects it, and a year-by-year bridge table through age 62 — when the supplement stops entirely.

The $24,480 threshold (2026). Below this, every dollar you earn from work is additive — your full supplement is preserved. Above it, you enter a zone where earning $2 more costs you $1 in supplement — an effective 50% marginal rate on that work income, before income taxes. At the "wipe-out" income level, the supplement is gone entirely. This calculator shows exactly where those lines fall for your numbers.

Your inputs

What the FERS Supplement is (and isn't)

The FERS Annuity Supplement — also called the Special Retirement Supplement (SRS) — is a separate monthly payment from OPM, paid in addition to your basic FERS annuity. It bridges the gap between your retirement date and age 62, when you first become eligible for Social Security.

Key facts:

Paid by OPM, not SSA. It does not affect your eventual Social Security benefit.
Available only under immediate retirement at MRA with 30+ years, or at age 60 with 20+ years — not under MRA+10 (no supplement), deferred retirement, or disability retirement.
Calculated as (FERS years ÷ 40) × estimated SS benefit at 62 — OPM uses a projected full-career SS benefit that may differ slightly from your SSA statement.
Stops at your exact 62nd birthday, regardless of when you file for Social Security.
Subject to FERS COLA? No — unlike your basic annuity, the supplement does not receive annual cost-of-living adjustments.

The earnings test: what counts and what doesn't

OPM applies the same definition of earned income that Social Security uses for recipients below their full retirement age:

Counted (reduces your supplement): W-2 wages from any employer, net self-employment income after legitimate business expenses, consulting and freelance fees, net income from a business you materially participate in
Not counted (no effect on supplement): Your FERS basic annuity, TSP or IRA withdrawals, investment income (dividends, interest, capital gains), Social Security benefits, rental income (unless real estate is your primary trade or business), your spouse's income, pension income from other sources

Consulting trap. Many federal retirees who consult for former agency contacts or private clients assume informal consulting income "doesn't count." It does. Net self-employment income — after legitimate business expenses — is fully subject to the earnings test. Keep clean records; deductible expenses reduce the counted amount.

The OPM survey process — how the reduction actually works

OPM enforces the earnings test through an annual paper survey, not automatic IRS data matching (initially). Understanding the process helps you plan:

After your first full year of retirement, OPM mails the Annuity Supplement Earnings Survey (Form RI 92-22).
You report your prior-year earned income by the survey deadline (typically late spring or summer).
OPM computes the reduction using the exempt amount for the year the income was earned.
The reduced supplement takes effect with the July payment of the following year. Earnings in 2026 affect your supplement starting July 2027.
If you don't return the survey, OPM may suspend your supplement. If you underreport, OPM can recoup overpayments from future annuity payments.

Always report accurately and keep copies. The one-year lag means your first year of retirement typically proceeds at the full supplement — use that year to understand your post-retirement income pattern before the earnings test kicks in.

Structuring post-retirement work to optimize total income

The earnings test creates a band of income where the marginal return on extra work is effectively 50%. Understanding this helps you structure part-time work:

Below $24,480/year: Full supplement preserved. Every dollar of work income is additive to your total retirement income.
$24,480 to the wipe-out level: Each additional dollar earned above the threshold yields only $0.50 net. The other $0.50 is lost from supplement reduction. Combined with ordinary income taxes, effective marginal rates in this band can exceed 60% for some retirees.
Above the wipe-out level: Supplement is $0, but work income is again dollar-for-dollar. The question is whether income earned across the full wipe-out zone was worth the hours worked.

Many FERS retirees find it rational to target income either clearly below $24,480 (to preserve the full supplement) or significantly above the wipe-out income level (where work income fully compensates). Getting "stuck in the middle" — earning $35,000 when the exempt amount is $24,480 and your supplement is $12,000/year — can mean earning a lot of extra income for a relatively small net gain.

Related FERS calculators and guides

FERS Annuity Calculator — estimate your basic annuity, survivor benefit election cost, and base supplement amount
FERS Retirement Planning Guide — MRA tables, 1.0%/1.1% multiplier, three-legged stool, TSP coordination
TSP Rollover Guide — whether to keep G Fund access or move to an IRA after retiring
FERS Annuity & Medicare IRMAA Guide — how annuity + supplement income affects Medicare premiums
Pension + Social Security Strategy — when to claim SS after the supplement ends at 62
457(b) Rollover Guide — if you also have a federal 457(b) deferred compensation plan
Match with a FERS retirement specialist

Get your full FERS retirement picture modeled

The supplement and earnings test interact with your annuity, TSP, eventual Social Security timing, and Medicare IRMAA in ways a one-page calculator can't fully capture. A fee-only specialist who focuses on federal employee retirement can model the complete picture — including when to claim SS after the supplement ends at 62, whether to roll the TSP, and how to structure part-time income without triggering unnecessary supplement reductions.

Sources

SSA.gov — Exempt Amounts Under the Earnings Test: 2026 annual exempt amount for workers below full retirement age: $24,480. OPM applies the same threshold for the FERS Annuity Supplement earnings test. // 2026 FERS supplement earnings test: $24,480 per SSA OACT
OPM.gov — FERS Annuity Supplement Survey FAQ: Annual survey process (Form RI 92-22), reporting deadlines, one-year lag, and how OPM computes the July supplement reduction based on prior-year earnings.
Government Executive — Federal retirees: new COLAs, premiums and earnings limits in 2026: 2026 earnings test threshold ($24,480) for FERS Supplement and Social Security beneficiaries below FRA confirmed.
OPM.gov — Retirement Eligibility Surveys: Survey schedule, reporting requirements, supplement suspension for non-compliance, and recoupment procedures for overpayments.

FERS Supplement earnings test threshold ($24,480) verified for 2026. Threshold adjusts annually with SSA COLA changes. Calculator uses the SSA earned-income definition: wages + net self-employment income only. OPM applies a one-year reporting lag; payment adjustments take effect in July following the survey year. Supplement stops at the retiree's exact 62nd birthday. Consult an OPM retirement specialist or fee-only financial advisor for your specific situation.