FERS Supplement vs. the 10% Pension Bonus

September 22, 2025

Every FERS employee has to make this choice at some point — even if they don’t realize it:

1) Do you want a bridge check that helps cover income until Social Security? Or…

2) Would you rather wait and secure a permanent raise in your pension for the rest of your life?

That’s the trade-off between the FERS Supplement and the 10% Pension Bonus.

Both are valuable, but they serve very different purposes.

The Supplement: Money Now

The FERS Supplement is designed to “fill the gap” for employees who retire before 62.

It’s meant to mimic the Social Security benefit you’ve earned through federal service, paying you until you’re eligible to collect Social Security itself.

Here’s what to know:

  • You must retire with an immediate, unreduced pension — typically at your Minimum Retirement Age (MRA) with 30 years, or at age 60 with 20 years.

  • The payment ends the month you turn 62, whether you claim Social Security or not.

  • It’s tied to your years of creditable service. For example, if your age-62 Social Security benefit is projected at $1,600/month and you have 30 years of service, the supplement would be about $1,200/month.

The benefit is temporary, but for those leaving government before 62, it can make a big difference in covering living expenses without tapping the TSP too aggressively.

The Bonus: More Forever

The 10% Pension Bonus is different. It rewards employees who stay until at least 62 and complete 20 or more years of service.

Instead of multiplying your years of service by 1.0% of your high-3 salary, OPM uses 1.1%.

That sounds small, but the effect is permanent:

  • A $2,000/month pension becomes $2,200/month.

  • Over 20 years of retirement, that’s nearly $50,000 more — not including annual COLAs.

  • Because the higher pension becomes your new base, it also increases any survivor annuity you leave behind.

Where the Supplement is short-term, the Bonus compounds over the rest of your life.

The Trade-Off

So, which is better?

  • If you retire early, the Supplement is often essential. It provides steady income for those “gap years” when you’re not yet eligible for Social Security.

  • If you can hold out until 62+ with 20 years, the Bonus usually wins in the long run. Even though you miss the Supplement, your higher pension keeps paying you — and your spouse, if you choose a survivor benefit — for decades.

Think of it this way:

  • The Supplement = a short-term bridge.

  • The Bonus = a long-term raise.

Which one works best for you depends on your retirement timing, health, financial needs, and whether you want income sooner or later.

The Bottom Line

You can’t collect both. But either benefit can add tens of thousands of dollars to your retirement income.

So ask yourself:

👉 Do I want more money now… or more money indefinitely?

The right answer is the one that aligns with your timeline, your health, and your family’s financial picture.

Best,
—FWR