Q: Your recent article on the Personal Advisor in the Nov. 2 issue of Federal Times described retirement benefits. You note that in 1983, “Those already covered by [Civil Service Retirement System] had the option of electing full coverage under both CSRS and Social Security …” However, your description doesn’t seem to recognize the Windfall Elimination Provision, such that those who elected to be covered by both get the severe reduction on their Social Security from the WEP. Is my understanding correct, or is something on WEP changed? I understand that I will get the WEP reduction on my Social…
Yearly Archives: 2009
Q: I am a retired Civil Service Retirement System annuitant who is currently employed in the private sector. Due to the economic downturn, I am going to have to work longer than I had planned and have been tentatively offered a job with the government. I know that previously, if I returned to work for the government, my salary would be reduced by the amount of my annuity, i.e., I would only draw a salary for the difference. I saw an article that indicated this might be changing with the new Defense Authorization Bill that the president was expected to…
Q: My son has recently been dropped from my health care because he reached the age of 22. I have heard that there might be an extension of health benefits for dependents. Has there been any decision on this? Also, are there any provisions of adding dependents after the open health benefits period, which is approaching. A: Extending the age at which dependents may be covered by the Federal Employees Health Benefits program would require a change in the law. Although such a change was proposed by the previous Office of Personnel Management director, Congress has so far has taken…
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
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…