Q: I’m a FERS employee. I’ve read information on the OPM website that indicates that I can retire at age 57, based on my birth date. However, I hear fellow colleagues mentioning that early retirement is not available until age 59 1/2. Is there a difference in benefits between retirement at these two ages besides the 5 percent per year pension reduction to age 62? A: FERS employees can retire on an immediate, unreduced annuity at their minimum retirement age, which ranges between 55 and 57, depending on their year of birth. They also can retire at their MRA with…
Monthly Archives: June, 2010
Q: I’m on FERS disability retirement. I am 58 and would like to know, if I work for my local county government, will my annuity be affected if I stay under the 80 percent earnings cap? A: As long as you remain disabled and don’t exceed the 80-percent limit, your disability annuity will continue.
Q: With the ballooning deficits and the fact that the government has regularly “borrowed” from pension funds, should we be worried about actually receiving our full pensions when we retire? A: No, you don’t need to worry, and it doesn’t make any difference whether you are covered by CSRS or FERS. All retirement contributions go into and annuity payments come out of the same place: The Civil Service Retirement and Disability Fund.
Q: I am a 63-year-old CSRS federal employee. My husband is retired and drawing Social Security. Am I eligible for the Social Security spousal benefit if I am still employed under CSRS? A: Yes, you are eligible for a spousal Social Security benefit while still working; however, once you retire you will be subject to the government pension offset provision of law. The GPO will reduce that spousal annuity by $2 for every $3 you receive in your CSRS annuity.
Q: I am on regular Medicare and have maintained my BC/BS family coverage through FEHBP for a monthly cost of $510 or so. Would I not be better off getting a Medicare supplement policy that would not cost anywhere near as much as my FEHBP premium? Do many federal retirees make this choice? I had thought it wise to maintain FEHBP, and will until my wife catches up with me and goes on Medicare, but due to these costs I wonder. A: If I read you correctly, you are considering dropping FEHB coverage and buying supplemental Medicare coverage before your…
Q: If you retire with annual leave and restored leave accumulated, will you get paid for your restored leave as well as your annual leave? A: You will receive a lump sum payment for any unused annual leave you have to your credit when you retire.
Q: I am a CSRS postal employee. I have my 41 years, 11 months of service time and have one year of unused sick leave accrued. Will I be paid one lump sum for the sick leave, or will it add to my monthly annutity, even though 80% is the maximum? If added to monthly, how would the additional amount be calculated? A: CSRS employees reach the maximum 80 percent limit when they have 41 years and 11 months of service. Therefore, when your annuity is computed, you’ll receive a refund of any contributions you made to the retirement fund…
Q: I have 24 1/2 years with the U.S. Postal Service under FERS. I paid the deposit for seven years of military time and 2 1/2 years with the Federal Aviation Administration. I am 58 and have reached minimum retirement age with 34 years of total service, but only have 24 1/2 years as a FERS employee. Will my Social Security special supplement be calculated to include my military and FAA time of 9 1/2 years? A: Your special retirement supplement will be based solely on the time you were employed under FERS.
Q: Can nine years as a Marin County, Calif., firefighter count toward a federal retirement? A: No, it can’t.
Q: I plan to retire from federal service in a few years under CSRS. I will not receive Social Security benefits. My wife will retire at about the same time with Social Security benefits and a small state pension. I plan to elect a survivor annuity for my wife. If I die before her and she begins receiving the CSRS survivor annuity payments, will her monthly Social Security benefit be reduced due to the windfall elimination provision or any other factor? A: No, her Social Security benefit won’t be reduced. She will be able to receive her earned Social Security…