TRANSCRIPT:

Paul: Okay, what is the FERS Supplement? This is what’s called the FERS Annuity Supplement, and this is a wonderful benefit that you have as a Federal Government employee.

This allows you to get part of what you’re gonna earn on Social Security at the age of 62 at an earlier age, as long as you have at least 20 years of service.

This is the way it works. The formula’s simple. You’re gonna take your years of service. In our example, our employee had 30 years of service. You divide it by 40. So our employee is going to get 75% of what he’s gonna earn on Social Security at the age of 62 when he retires at the age of 60. So at the age of 62, we know that he’s gonna get $1,600 a month from Social Security. So 75% of that $1,600 is $1,200 per month that you will draw before you reach the age of 62, as long as you have 20 years of service.