Do FERS Employees Get Social Security?

The Federal Employees Retirement System (FERS) is a comprehensive retirement plan for most federal civilian employees. FERS employees generally participate in Social Security and are eligible for its benefits. This article explains how Social Security integrates with the FERS plan, detailing its components and how to estimate benefits.

The Federal Employees Retirement System (FERS)

The Federal Employees Retirement System (FERS) became effective on January 1, 1987, covering most federal civilian employees hired after 1983. This system provides retirement income from three distinct sources, often called a “three-legged stool.” These components work together to offer a comprehensive retirement package.

The first component is the FERS Basic Benefit Plan, a defined benefit pension. This plan provides a guaranteed monthly annuity based on an employee’s years of service and their “high-3” average salary. Employees contribute a percentage of their salary, with the agency also contributing on their behalf.

The second component is the Thrift Savings Plan (TSP), a defined contribution plan similar to a private sector 401(k). The agency automatically sets up a TSP account and contributes 1% of the employee’s basic pay each pay period. Employees can also make pre-tax or Roth contributions, and the agency provides matching contributions up to an additional 4%.

The third part of FERS is Social Security. Unlike its predecessor, the Civil Service Retirement System (CSRS), FERS mandates participation in Social Security. FERS employees pay Social Security taxes on their earnings, making them eligible for Social Security benefits upon meeting program requirements.

How Social Security Integrates with FERS Benefits

Social Security benefits are a key part of FERS retirement income. FERS employees contribute to Social Security through regular payroll deductions, via FICA tax (Social Security and Medicare taxes). These contributions enable employees to earn Social Security credits throughout their careers.

To qualify for Social Security retirement benefits, an individual needs 40 credits, earned by working and paying Social Security taxes for 10 years. The Social Security Administration (SSA) directly pays these benefits. Social Security benefits are calculated based on an individual’s lifetime earnings, adjusted for inflation, with the 35 highest-earning years used in the calculation.

This integration means FERS retirees receive income from their FERS Basic Benefit, TSP savings, and Social Security. The FERS Basic Benefit is generally a smaller percentage of pre-retirement income than the older CSRS system, as Social Security supplements it. For those who retire before becoming eligible for Social Security at age 62, a FERS Special Retirement Supplement may provide a bridge payment. This supplement approximates the Social Security benefit, continuing until age 62.

Understanding Social Security Benefit Reductions

Historically, two provisions, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), reduced Social Security benefits for individuals also receiving a government pension from employment not covered by Social Security. The Social Security Fairness Act, signed into law on January 5, 2025, officially repealed both WEP and GPO, with retroactive effect to January 2024.

WEP affected individuals who received a pension from a job where they did not pay Social Security taxes and also had sufficient earnings from Social Security-covered employment to qualify for Social Security benefits. WEP was designed to prevent an unintended “windfall” for these workers, as the Social Security benefit formula provides a higher proportion of earnings to lower-wage earners. It reduced the worker’s own Social Security retirement or disability benefits.

The Government Pension Offset (GPO) applied to individuals who received a government pension from non-covered employment and were also eligible for Social Security spousal or survivor benefits based on someone else’s earnings record. GPO aimed to ensure fairness between those who received their own Social Security benefits and those who received a non-covered pension. GPO would reduce or eliminate those spousal or survivor Social Security benefits by two-thirds of the non-covered pension amount.

With the enactment of the Social Security Fairness Act, FERS employees who previously had their Social Security benefits reduced by WEP or GPO will no longer be subject to these offsets. Affected individuals may receive higher Social Security benefits and could be eligible for retroactive payments dating back to January 2024.

Accessing and Estimating Your Social Security Benefits

For FERS employees, understanding your Social Security benefits begins with accessing personalized information from the Social Security Administration (SSA). Create a “my Social Security” online account on the SSA’s official website. This account provides access to your earnings record and estimated future benefits.

Through your “my Social Security” account, you can review your earnings history for accuracy, crucial for benefit calculations. The account also provides estimates of your Social Security retirement benefits at different claiming ages (e.g., age 62, full retirement age, and age 70). These estimates consider your earnings and aid in retirement planning.

While the “my Social Security” account is a valuable tool, these are estimates. Actual benefits depend on your complete earnings record, future earnings, and claiming age. For specific questions or personalized assistance, contact the Social Security Administration by phone or visit a local office.