So you’ve put in your years as a federal law enforcement officer, and retirement is finally here. But here’s a question that comes up all the time: Can you go back to work? Maybe you want to start a second career, do some consulting, or just stay busy. The short answer is yes, you can work after retiring from federal service. But there are some important rules you need to know about, especially when it comes to your benefits.

Let’s break down what you need to understand about working after retirement as a federal LEO under FERS.

Understanding the FERS Special Retirement Supplement (SRS)

First things first: if you’re a law enforcement officer who retired under FERS before age 62, you’re probably getting something called the Special Retirement Supplement. This is basically a bridge payment that’s designed to help fill the gap between when you retire (often in your 50s) and when you can start collecting Social Security at age 62.

The SRS is meant to approximate what you’d get from Social Security if you could claim it early. It’s a nice benefit that recognizes the fact that LEOs retire earlier than most federal employees.

But here’s where it gets tricky: the SRS comes with strings attached if you decide to work.

The 2026 Earnings Limit You Need to Know

If you’re under age 62 and receiving the Special Retirement Supplement, you need to pay attention to the earnings limit. For 2026, that limit is $24,480.

What does this mean? If you earn more than $24,480 from working in a year while you’re receiving the SRS, your supplement gets reduced. And it’s not a small reduction: it’s dollar-for-dollar. For every $2 you earn over that limit, your SRS gets reduced by $1.

Let’s say you earn $30,480 from a part-time job in 2026. That’s $6,000 over the limit. Your annual SRS would be reduced by $3,000 (half of the amount over the limit). If your SRS was $10,000 per year, you’d only receive $7,000 after the reduction.

This earnings limit is tied to the Social Security earnings test, which is why it changes every year based on inflation adjustments.

Once you hit age 62, your SRS stops completely anyway, so this earnings limit no longer applies to that particular benefit. At that point, you can earn as much as you want without affecting your FERS annuity.

What Counts as Earnings (and What Doesn’t)

This is super important, and a lot of people get confused about it. When we talk about the earnings limit for the SRS, we’re only talking about specific types of income.

What DOES count toward the earnings limit:

• Wages from a job (W-2 income)
• Self-employment income (if you start your own business or do consulting work)

What DOES NOT count toward the earnings limit:

• Your FERS pension/annuity
• TSP withdrawals or distributions
• Investment income (dividends, interest, capital gains)
• Rental income from real estate
• Social Security benefits (if you’re receiving them)

So if you’re living off your FERS annuity, taking money out of your TSP, and collecting income from investments, none of that counts toward the $24,480 limit. You could have a million dollars coming in from these sources and it wouldn’t affect your SRS at all.

The limit only applies to money you earn from actually working: either for an employer or for yourself.

Special Exemption for Law Enforcement Officers

Here’s something that’s specific to law enforcement officers and other special category employees: there’s an important exemption you should know about.

For regular FERS employees, if they return to work for the federal government after retirement, their annuity typically stops and they go back on regular payroll. But there’s a different situation for LEOs who haven’t reached their Minimum Retirement Age (MRA).

The key point is that special category employees like law enforcement officers have different rules because they can retire earlier than regular federal employees. Most LEOs can retire at age 50 with 20 years of service, or at any age with 25 years of service. This is well before the MRA that applies to regular federal employees (which ranges from 55 to 57 depending on your birth year).

However, the earnings limit for the SRS still applies to LEOs just like everyone else who receives it. The special treatment for LEOs is mainly about eligibility for early retirement and the enhanced annuity calculation, not about exemptions from the SRS earnings test.

It is very important to understand your specific situation and how these rules apply to you personally. The rules can be complex, and your individual circumstances matter.

Rehired Annuitant Rules: Returning to Federal Service

What if you want to go back to work for the federal government after you retire? This is called being a “rehired annuitant,” and there are specific rules that apply.

If you’re rehired by the federal government after retirement:

• Your annuity will generally continue
• You’ll receive a salary for your new position
• However, your salary will typically be reduced by the amount of your annuity (this is called a “salary offset”)
• You won’t earn additional retirement benefits in most cases
• You won’t make FERS contributions or have TSP matching

There are some exceptions to these rules, particularly for positions that are hard to fill or in certain emergency situations. Some agencies can request a waiver of the salary offset for critical positions.

If you later leave federal employment again, your annuity continues as before (with possible adjustments based on any cost-of-living increases you missed while working).

The rehired annuitant situation is different from working in the private sector, where your annuity continues unchanged (though the SRS earnings limit still applies if you’re under 62).

Planning Your Post-Retirement Work Strategy

Given all these rules, how should you think about working after retirement as a federal LEO?

If you’re under 62 and receiving the SRS:
Consider keeping your earnings under $24,480 if you want to preserve your full SRS payment. This might mean part-time work, seasonal work, or consulting that you can control the timing of.

If you’re 62 or older:
Your SRS has already ended, so you can earn as much as you want without affecting your FERS annuity. This is a good time to pursue that second career if you want to.

If you’re considering federal reemployment:
Understand the salary offset rules and whether the position might qualify for a waiver. Sometimes the math works out, sometimes it doesn’t.

For everyone:
Remember that working longer (even part-time) delays when you might need to tap into your TSP, which can be a good strategy for long-term financial health.

Do your own research and analysis on your specific situation. Everyone’s retirement income needs are different, and what makes sense for one person might not make sense for another.

How Federal Benefits Service Can Help

Navigating all these rules can be complicated, especially when you’re trying to figure out how much you can earn without losing benefits. That’s where Federal Benefits Service comes in.

We specialize in helping federal employees: including law enforcement officers: understand their benefits and make informed decisions about retirement and post-retirement work. Our team can help you:

• Calculate exactly how additional earnings will affect your SRS
• Plan a work strategy that maximizes your total income
• Understand your options if you’re considering federal reemployment
• Project your retirement income from all sources
• Make informed decisions about when to claim Social Security

You can schedule a benefits review at https://federalbenefitservice.com/benefits-review to discuss your specific situation with someone who understands federal benefits inside and out.

Important Legal Notices and Disclaimers

This content is for informational and educational purposes only. Nothing in this article constitutes financial advice, investment advice, legal advice, or tax advice. We are not advising you to take any specific action or make any particular decision regarding your retirement, employment, or benefits.

Do your own research. It is very important that you conduct your own analysis before making any decisions about post-retirement employment. Your individual situation, financial needs, and retirement goals are unique to you.

No warranty or guarantee. The information provided here is believed to be accurate as of the date of publication, but federal benefits rules can change. We make no warranty or guarantee regarding the accuracy, completeness, or applicability of this information to your specific circumstances.

Seek professional guidance. You should consult with qualified financial advisors, tax professionals, and legal counsel regarding your specific situation before making important decisions about retirement and employment.

No liability. Federal Benefits Service and its representatives are not liable for any actions you take or fail to take based on this information. All decisions regarding your employment and retirement are your personal responsibility.

OPM is the official source. For official information about FERS, the Special Retirement Supplement, and federal retirement benefits, you should consult the Office of Personnel Management (OPM) and your agency’s HR department.

Retirement planning for law enforcement officers requires careful consideration of multiple factors. By understanding the rules about the FERS Special Retirement Supplement, the 2026 earnings limit of $24,480, and how different types of income are treated, you can make informed decisions about whether and how much to work after retirement.

Set a meeting through our Benefits Review service if you need personalized guidance on your retirement planning. We’re here to help federal law enforcement officers make the most of their hard-earned benefits.