Q: If a 56-year-old Federal Employees Retirement System employee with 22 years of creditable service is involuntarily separated under a discontinued service retirement and takes the immediate annuity, does the annuity reduction of 2 percent per year for every year under age 62 apply? Does the employee also immediately qualify for the FERS annuity supplement? A: If you take a discontinued service retirement, you won’t be penalized 5 percent (not 2 percent) for every year you are under age 62. Further, because you have reached your minimum retirement age, you will be eligible to receive the special retirement supplement.
Yearly Archives: 2010
Q: Can the president change the high-3 retirement formula to high-5 by executive order, or must this change be approved by Congress and then signed by the president? A: The high-3 formula is a matter of law. To change that would require that the Congress pass legislation and the President sign it into law.
Q: Can you define the “no reduction” option? My understanding of it is this: For example, take a basic life insurance policy, prior to retirement, worth $100,000. At retirement, I can choose to keep paying for $100,000 coverage up to age 65 with the “no reduction” option. Is that correct, or is the coverage amount based on your retirement annuity, which would be much less ($58,000)? A: The “no reduction” option allows you to preserve the face value of your insurance on the day you retire. It has no connection to the amount of your annuity.
Q: Under the Federal Employees Retirement System, after 20 years, your annuity is figured at 0.011 percent of your high-3 salary average multiplied by your years of service. Below 20 years, the percentage used is 0.01. With the new law allowing 50 percent of unused sick time to be used for annuity calculations, can that time also be used to meet the 20-years-of-service criterion? A: Let’s first get the computational facts straight. The standard FERS formula is as follows: 0.01 x your high-3 x your years of creditable service. The 0.011 multiplier is only used if you retire at age…
Q. I read some of your responses to questions regarding this subject and I’m still confused. So, here are my questions: I retired from the federal government with 36 years of service under the Civil Service Retirement System. My wife is qualified for Social Security when she reaches the appropriate age. Will she be able to draw her full Social Security benefits? Also, if I am qualified for Social Security, 40+ quarters paid in, will I be able to draw some minimum amount? Please explain your answers or provide a reference so I can look up the particulars. A. The fact…
Q. Does leave without pay count toward retirement? A. Yes, as long as it doesn’t exceed six months in a calendar year.
Q. I am a federal employee working in Washington state. Can you tell me how many years I would have to work in a state job in order to qualify for a second retirement? A. No I can’t tell you that. This is a site dedicated to answering questions about federal benefits. You’ll have to get that information from the state where you hope to be employed.
Q. I was a federal government employee for approximately seven to eight years under CSR; 1980-88. When I resigned, I did cash out. I also have had four years of military active duty (after 1988) and have 20 years of credible service in the reserves. In 2004, I was offered a government job and was informed that with all things considered, I would come back in with approximately 14 years of service. Today, I believe that number would be around 16 years. My question: If I were to accept career employment with the federal government under the FERS program, approximately…
Q. I retired from the Postal Service in July after 14 years. I would like to go back to work for the Postal Service. Is there a waiting period that I have to go through or is this allowed. I am 61 and I did not take the buyout for retirement. If I were rehired, would I go in as a brand new hire? A. There isn’t any waiting period. If you were rehired by the Postal Service, you would be a re-employed annuitant and the salary of your new job would be offset by the amount of your annuuity.
Q. I would like to know how many civil service employees are still employed by the Postal Service. I have heard rumors that there will be a buyout package for them next year. It is alleged that the offer would include five years added to their current years of service along with a handsome cash settlement. If there is no penalty for age, all civil service employees in my office would accept it. Do you have any information on this? A. I don’t keep track of agency employment levels so I can’t help you there. However, what you heard about…