Do Federal Employees Pay Social Security Tax? FERS & CSRS Calculator
Federal employees have retirement benefits and payroll tax obligations that differ from those of private-sector workers.
Their retirement programs determine how employees contribute toward their pensions and qualify for retirement benefits.
Federal Employee Social Security Calculator
Your FERS Social Security & Pension Contributions
| Feature | FERS | CSRS | CSRS Offset |
|---|---|---|---|
| Social Security tax | Yes | No on CSRS-covered wages | Yes |
| Medicare tax | Yes | Yes | Yes |
| Retirement income | Pension + Social Security + TSP savings | Mainly CSRS pension | CSRS pension + Social Security |
| Pension amount | Generally lower pension formula | Generally higher pension formula | CSRS formula, then applicable offset |
| Social Security from federal work | Yes | No | Yes, for covered earnings |
| Pension reduction at Social Security eligibility | No direct offset | No CSRS Offset reduction | Yes, CSRS pension is reduced under offset rules |
| Spousal Social Security | Normal eligibility rules | WEP/GPO no longer reduce benefits under current law | Normal eligibility rules |
| Usually best described as | Three-part retirement system | Traditional federal pension | Combination of CSRS and Social Security |
FERS vs. CSRS: Who Pays Social Security Taxes?
| Tax or benefit | FERS | CSRS |
|---|---|---|
| Social Security tax | Yes, 6.2% | Usually no |
| Medicare tax | Yes, 1.45% | Yes, 1.45% |
| Social Security from federal work | May qualify | Generally not |
| Federal pension | Yes | Yes |
| CSRS Offset exception | Not applicable | Pays Social Security tax |
Both generally pay Medicare taxes. CSRS Offset employees are an exception: they pay Social Security taxes and may qualify for benefits.
Can Federal Employees Collect Social Security and a Federal Pension?
Yes, federal employees can receive both Social Security benefits and a federal pension, but eligibility depends on their retirement system and work history.
| Retirement system | Federal pension | Social Security | Can receive both? |
|---|---|---|---|
| FERS | Yes | Based on covered work | Yes, if eligible |
| Traditional CSRS | Yes | Based on other qualifying work or eligible family benefits | Yes, if eligible |
| CSRS Offset | Yes, subject to an offset | Based on covered work | Yes, but the pension may be reduced |
If you are a FERS retiree who worked enough years, you can claim a Social Security retirement benefit at age 62 or later, unaffected by the FERS pension.
Because they are eligible for both a worker benefit and possibly a spousal benefit, the dual-entitlement rule applies: SSA will combine benefits but offset the smaller against the larger.
Example: Your Own Benefit vs. Spousal Benefits
For example, if a spouse qualifies for both their own Social Security benefit and a benefit as a current spouse, they generally receive one combined monthly payment, not two full benefits.
CSRS Employees and Social Security Benefits
A CSRS-only federal retiree generally does not receive Social Security benefits based on CSRS-covered federal service but may qualify through other employment or a spouse.
CSRS-Only Employees
- Earn no Social Security credits from CSRS-covered federal service
- May qualify through other covered work or a spouse
- No longer face GPO reductions on eligible benefits
- Generally receive their full CSRS annuity
CSRS-Offset Employees
- Pay Social Security taxes on covered earnings
- May qualify for Social Security retirement benefits
- Have their CSRS annuity adjusted under the CSRS-Offset formula
- No longer face WEP reductions on eligible benefits
- May qualify for spousal or survivor benefits without GPO reductions
Do Federal Retirees Pay Social Security Taxes?
Federal retirees do not pay Social Security taxes on their federal retirement annuity.
FERS employees and CSRS-Offset employees typically paid Social Security taxes while working, whereas CSRS-only employees generally did not.
| What is being paid? | Do retirees pay? |
|---|---|
| Social Security tax on pension | No |
| Medicare payroll tax on pension | No |
| Social Security tax on wages from a new job | Usually, if the job is covered |
| Medicare Part B and D premiums | If enrolled |
| Federal income tax on pension | Generally, on the taxable portion |
| State income tax on pension | Depends on state law |
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