Q: I am a federal employee with almost 50 years of service. Are the excess contributions that I have made since reaching the 80 percent maximum at 41 years, 11 months, taxable when I retire? A: Any refund of excess contributions you made to the retirement fund won’t be taxable. You already paid taxes on them. On the other hand, any interest you receive will be taxable. — Reg Jones
Monthly Archives: November, 2009
Q: The new Defense Authorization Act gives full credit to Federal Employes Retirement System employees for their unused sick leave if they retire after Jan. 1, 2014. I know that the new law also allows FERS employees to get credit for half of the unused sick leave if an employee chooses to retire before Jan. 1, 2014. But what happens if you will reach your mandatory retirement age under the 6-C law enforcement coverage before 2014? Your assistance is appreciated. A: Without exception, any FERS employee who retires voluntarily or involuntarily before Jan. 1, 2014, will only get credit for…
Q: I was drafted in January 1966 spent 1967 in Vietnam. I have been a civil servant with the Defense Department since April 1985. I’m 63 and would like to retire in the next 3 years. To have the 18 months of my Vietnam service added to my retirement, I have to pay back with interest the money I made during those 18 months. Why does the government hate me so much for going to Vietnam, that they would want all their money paid back with interest? A: For Federal Employees Retirement System employees, there are no exceptions to the…
Q: I was a former Merchant Marine cadet, and have been a Navy Reserve officer for eight years. I just started to work for the Federal Aviation Administration. I know the Civil Service/Federal Employees Retirement System handbook leaves out the Merchant Marine Academy as one of the academies eligible for military service credit, however, I have a “statement of service” in my Navy Reserve folder stating I was a midshipman in the Navy Reserve during those four years. The dates are also listed in my annual statement of service history. It does say that those dates are not creditable, but…
Q: My wife retired at the age of 58 with a Civil Service Retirement System annuity. If she has 40 quarters in the Social Security system before she is 62, will she be able to collect her Social Security at age 62 without a reduction in her CSRS annuity? A: If she was covered by CSRS alone, her CSRS annuity won’t be reduced. However, her Social Security benefit will be reduced through the workings of the Windfall Elimination Provision. The WEP reduces — but doesn’t eliminate — the Social Security benefit of anyone receiving an annuity from a retirement system…