What changed: the 2027 earnings limit for the FERS Supplement rises to $25,560

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Published October 28, 2026 · By the OnPAR Federal Retirement Education editorial team · Last updated October 28, 2026

Short answer: On October 26, 2026, the Social Security Administration published its official 2027 numbers in the Federal Register. The one that matters most to FERS retirees under 62 is the earnings limit, which rises to $25,560 for 2027 (up from $24,480 in 2026). The FERS Supplement uses this same limit. If you earn more than that from work, OPM cuts your supplement by $1 for every $2 over the limit. The cut comes the year after you earn the money: 2027 wages are judged against $25,560 and affect your supplement in 2028.

What changed

Social Security figure	2026	2027
Earnings limit, under full retirement age all year	$24,480 a year ($2,040 a month)	$25,560 a year ($2,130 a month)
Earnings limit, year you reach full retirement age	$65,160 a year	$67,920 a year
Maximum wages taxed for Social Security	$184,500	$192,300
Earnings needed for one Social Security credit	$1,890	$1,970

SSA set these amounts from the national average wage index for 2025 ($72,800.33). The new limit is published in SSA's notice "Cost-of-Living Increase and Other Determinations for 2027" (91 FR 67380).

Who it affects

FERS retirees getting the supplement who work after retirement. That includes people who retired at MRA with 30 years, at 60 with 20 years, under an early-out (VERA) or discontinued service retirement, or under special provisions (law enforcement, firefighters, air traffic controllers).
Employees planning a second career after an immediate, unreduced retirement before 62.
Not affected: MRA+10, deferred and disability retirees. OPM says they don't get the supplement.

How the FERS Supplement earnings test works

Same limit as Social Security. OPM's rules use the Social Security "applicable exempt amount." The supplement stops at 62, so the lower limit ($25,560 for 2027) is the one that matters.
$1 for every $2. OPM takes half of your earnings above the limit (the rule calls this "excess earnings"). It then cuts your supplement by that amount divided by 12 each month (5 CFR 842.502 and 842.505).
The cut comes a year later. The rules measure earnings in a "test year," the calendar year before the year the cut is made. In 2027, your supplement depends on what you earned in 2026, measured against the 2026 limit of $24,480. What you earn in 2027 counts against $25,560 and affects 2028.
Only pay from work counts. That means wages (including overtime, bonuses and severance) and net self-employment earnings. Your FERS annuity, TSP withdrawals, other pensions, Social Security, interest, dividends and most 1099 income do not count, according to OPM.
Earnings before your MRA don't count. The rules leave out earnings before you reach your minimum retirement age. This mainly helps early-out and special-provision retirees who leave before their MRA.
Your pension isn't touched. OPM says only the supplement can be reduced, possibly to $0. Your FERS annuity is not reduced.
You have to report. OPM mails a FERS Annuity Supplement Survey asking about last year's earnings. If you don't return it when you're supposed to, OPM can suspend your supplement.

Worked example (using the official 2026 and 2027 limits)

Dana retired at 57 under MRA+30. Dana's supplement is $1,350 a month ($16,200 a year). Dana takes a part-time job that pays $31,560 in 2027.

Over the limit: $31,560 − $25,560 = $6,000.
Excess earnings (half): $6,000 ÷ 2 = $3,000.
Monthly cut in 2028: $3,000 ÷ 12 = $250, so the supplement is about $1,100 a month during 2028.
The new limit helps a little. At the old 2026 limit ($24,480), the same pay would be $7,080 over. That would mean $3,540 in excess earnings, a cut of $295 a month. The higher 2027 limit saves Dana $45 a month ($540 a year).
In the year you turn 62, the supplement ends. The rule then spreads the cut over only the months the supplement is still paid, so each monthly cut is bigger.

This is an example only. Your real supplement comes from OPM's calculation.

What to do next

Check your pay against the limit. If you're on the supplement and working, try to keep your 2027 earnings from work under $25,560, or plan for the cut in 2028.
Keep your W-2s and self-employment records. You'll need them for OPM's survey.
Run your numbers: the FERS Supplement calculator already uses the 2027 limit. To pick your retirement date, use the Retirement Date & MRA calculator. If you're weighing work against TSP withdrawals, use the TSP Withdrawal calculator.
Read more: What is the FERS Supplement? and the 2027 COLA and Open Season.