Monthly Archives: March, 2010

Q. It is my understanding that members of Congress must now participate in the health insurance exchange under the new health care bill recently passed. Since members of Congress were under FEHBP previously, does that mean federal employees must also participate in this exchange? If not, is there going to be any changes to our health benefits under the new health care bill? Other than increased costs, of course A. No, it doesn’t mean that you must also participate in the exchange. Federal employees retirees and survivor annuitants will be able to keep the insurance coverage they have now.

Q. I have two questions if you don’t mind. 1. When I retired (CSRS), I elected full survivor benefits for my wife. Will her survivor benefit be based on the amount of my annuity when I retired or when I died? 2. With all the talk of private retirement funds being decimated by the economic downturn, is there any way of knowing or determining how financially solvent the CSRS retirement fund is? A. If you were to die before your wife, she would receive 55 percent of the annuity you would have received if you hadn’t elected a survivor annuity,…

Q. I joined the National Guard in March 1981. I served with no breaks in service. I have deployed twice, May 2002- May 2003 (Title 10) and January 2007-May 2008 (Title 10). I also served active status from November 2008-present. I am currently on active duty (Title 32) and it could be possible that I may be found unfit to continue service due to heath issues. I may not return to my previous job because of the restrictions brought on by my recent health issues. I am worried I will not be able to provide for my family as I…

Q. I understand that my stateside locality pay will not count towards my retirement calculation for time that I serve in Naples, Italy. I am about to start a 3-year tour there, and when I return to the U.S., plan to retire. How will my annuity be calculated — based on my “high-3” from my last three stateside years, or does the more current base salary in Naples have something added to it as well for annuity calculation purposes? A. Your annuity will be based on your highest three consecutive years of average base pay, regardless of when that occurs…

Q. I retired from civil service at the end of 1985. I chose at that time to take a reduced annuity to ensure my wife would receive an annuity if I died before her. She is still with me. My question is whether or not I can at this time discontinue the reduced amount. If so, will she still be eligible for some annuity to her in case I die before her? I ask this because I have received the reduced amount for the 25 years since my retirement, and it seems logical to me that stopping after this length…

Q. I work for the USPS. Last night a co-worker and I talked. We both are in FERS and have active military time and guard or reserve time to retire from there. If our active military time is used for USPS retirement, does that effect our military retirement? A. As FERS employees, you will only get credit for your active-duty military service if you make a deposit to the civilian retirement fund for that time. (Reserve duty time isn’t generally creditable, so no deposit is required.) If you do make a deposit, you’ll get credit for that time in determining…

Q. My husband, age 56, has worked on the railroad for 29 years and is now on a disability from the railroad. I am working under CSRS and have been a federal employee for 30 years (age 57). Can my husband collect any benefits under CSRS and railroad retirement at the same time? When I retire, are we able to collect half of each others retirement or is it the greater of the two? A. The only CSRS benefits that are payable to a spouse are survivor benefits. At retirement you would need to elect that benefit and have your…

Q. Per the new Health Reform Act, the FEHB has been extended for FEHB dependents till 26 years old; would the temporary continuation of coverage (TCC) be available for these dependents aged 26 for three years, as currently designed for dependents 22 years old? My son was under the TCC from 22 to 25. Currently, he is 25 and under an individual health insurance policy. He turns 26 years old on Nov 29, 2010; unfortunately, before this new reform law becomes effective. Would he be eligible for another three-year TCC term since he is still a full-time student, at medical…

Q. My husband is retired civil service, and receives a civil service annuity retirement. When we filed our federal tax return, $250 was deducted from our return even though we did not receive $250 in January 2010. Is this correct? So we did not get a $250 tax credit, I suppose. A. To better understand the mechanics of the stimulus payment, I recommend that you read the well-written summary provided by the National Association of Active and Retired Federal Employees (NARFE). Just go to www.narfe.org/departments/home/articles.cfm?10=1989.

Q. I am a federal CSRS retiree and my 2010 monthly Medicare deduction increased from $96.40 to $110.50. My husband is a Social Security retiree only and his Medicare deduction remained the same for 2010 as was withheld in 2009, which was $96.40. In trying to find an answer to this disparity, one Web site tells me: “If you make less than $85,000.00 per year, it will be $96.40 per month. If you make more per year, see the link below for those amounts:” Since my gross monthly annuity is $3514.00 (annual total annuity of $42,168.00), is far less from…

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