The SRS earnings test does not start when you think it starts.

[FERS Ready]

Every week I post a retirement discussion based on one single retirement/financial decision. You can see my past scenarios HERE.

The SRS earnings test does not start when you think it starts.

I modeled a LEO (also special provisions 6(c) like ATC) this week, call him Carl. He retires this year at 49 with 25 years in, a $148K high-3, and $520K in the TSP. His supplement is $1,337.50 a month until 62. He's weighing a $60K a year consulting offer, and the standard warning came up fast: the earnings test withholds $1 for every $2 over $24,480, so $60K of wages means a $17,760 reduction. That's more than the whole supplement. Sounds like the job wipes it out on day one.

Here's what that warning misses. LEOs, firefighters, and air traffic controllers are exempt from the test until they reach their MRA. Carl's MRA is 57. So from 49 through 56, eight full years, he keeps the entire $16,050 a year supplement AND the paycheck. Nothing withheld.

At 57 the test kicks in, and for him it zeroes the supplement for ages 57 through 61. Totals by 62: $208,650 in supplement if he skips the job, $128,400 if he takes it. His federal benefit checks at 57 run $6,228 a month with the gig versus $7,348 without (the consulting paycheck sits on top of that, of course).

The job still comes out well ahead. But if you're eyeing a second career, the shape of this matters: free years up front, a cliff right at MRA. Worth knowing before you set your hours or your rate.
I ran this in FERS-Ready. Estimates based on current law and the inputs shown, not financial advice. Run your own numbers and confirm with OPM/SSA before making a decision.
Anyone here already past their MRA with a second job? How did the clawback actually land for you?

What scenario should I run next week?