Many individuals wonder, “Do Federal Employees Under Fers Get Social Security?” This question is crucial for understanding your overall retirement and financial security. For a significant portion of the federal workforce, the answer involves a nuanced understanding of the Federal Employees Retirement System (FERS) and its relationship with Social Security. Let’s delve into the specifics to clarify this important aspect of federal employment.
Understanding FERS and Social Security Eligibility
The core of the question “Do Federal Employees Under Fers Get Social Security” lies in how FERS integrates with the Social Security system. Unlike many private sector employees who only contribute to Social Security, most federal employees hired under FERS also participate in Social Security. This dual participation provides a layered retirement benefit.
Here’s a breakdown of how it typically works:
- Social Security Contributions Federal employees under FERS have a portion of their salary automatically deducted for Social Security taxes, just like most other American workers.
- FERS Pension In addition to Social Security, FERS provides a defined benefit pension, which is a monthly payment based on your years of service and average salary.
- Thrift Savings Plan (TSP) Many federal employees also contribute to the Thrift Savings Plan, a 401(k)-style retirement savings and investment plan, which further supplements their retirement income.
It’s important to note that there are exceptions, particularly for certain categories of federal employees hired before 1984 who might be covered by the older Civil Service Retirement System (CSRS) and not participate in Social Security. However, for the vast majority of federal employees hired under FERS, the answer to “Do Federal Employees Under Fers Get Social Security” is a resounding yes. The importance of understanding this dual coverage cannot be overstated, as it forms the foundation of your retirement income.
For a detailed comparison and to see how your specific federal service may be covered, refer to the official resources provided by the U.S. Office of Personnel Management (OPM).