Q: A CSRS retiree elects a reduced annuity to provide a spouse survival benefit at retirement. If the CSRS retiree dies, would the spouse with survival benefit continue with her scheduled allotment and would there be any additional compensation for the rest of her life in regard to the deceased CSRS retiree’s retirement fund? Secondly, with the same arrangement where the spouse predeceased the CSRS retiree, would the CSRS retiree recover that scheduled allotment and increase his annuity? A: If you were to die, your spouse would be entitled to a survivor annuity. Any of your retirement contributions that hadn’t…
Monthly Archives: February, 2011
Q: When a federal employee retires and has “Credit Hours Earned” (CD) that have not been used on the books, will they be paid in the same manner as for unused annual leave? A: You would receive a lump-sum payment for a maximum of 24 unused credit hours at your current rate of basic pay.
Q: I started a federal job four months ago and I want to buy back my active duty military time. I will be eligible to retire from the reserves in September 2011 with 20 good years. I have 13 years and nine months active duty and the remaining is all reserve time. Now, everyone tells me I cannot buy back and put my active duty time toward my federal retirement and retire from the reserves because it is double dipping. I am being told by sea lawyers that I can only use the active duty time once, either for retirement…
Q: I’m 56, retired from Veterans Administration for five years after a 30-year career in CSRS (including three years active military). I took early retirement. I did not claim disability status at time of retirement but have since acquired physical handicaps and subsequent surgeries typical for my trade (pipefitter). After a multiple discectomy and cervical fusion in 2007, I have been left with chronic pain in my shoulders and numbness in both hands. Can/should I get my status changed to a retirement with disability? How could this help me financially or otherwise? A: You are too late. You could only…
Q: My federal income tax withheld for February 2011 increased by $45.28. It increased from $349.80 to $395.08. I did not request this change. Is there reason for this retiree federal income increase? I understand that I am not the only retiree affected by this change. A: According to NARFE, the National Association of Active and Retired Federal Employees, “While all of the attention recently was on Congress extending the Bush-era tax cuts — which happened — a lesser-known federal tax credit for employees and retirees that was part of the 2009 Stimulus law was allowed to expire. “The ‘Making…
Q: On Oct. 12, 2010, someone asked if there is Medicare supplement insurance available under FEHB. You responded that we would have to wait until November 2010 when open season starts. Were there any companies offering a supplement plan for Medicare under FEHB? If not, can you refer me to someone that can advise as to the best plans (most cost effective) for FEHB participants that are also covered by Medicare Parts A and B? I have been paying for a self-and-family Standard Option BCBC plan for more than 30 years and carried it into retirement over 20 years ago.…
Q: I am a 62-year-old federal employee, about to retire under CSRS after 35 years of employment. My husband is 65 and has worked in the private sector for 40 years. He is receiving a monthly Social Security payment. If I elect a survivor benefit for him, would his Social Security benefit be reduced because of the survivor benefit upon my death? A: No, it would not be reduced. He’d be entitled to his earned Social Security benefit and the survivor annuity you elected for him, without a reduction in either.
Q: We have an employee who retired April 3, 2001, and was rehired as a reemployed annuitant, Oct. 7, 2002. The employee was coded with the retirement Plan of (1) CSRS and Annuitant Indicator of (1) Reempl Ann-CS. Is this correct, or should he have been coded as CSRS Offset? A: If he was a CSRS employee when he retired, he would be a CSRS reemployed annuitiant. If he was CSRS Offset, he’d be CSRS Offset. In either case, he would have the option of electing to be covered by FERS.
Q: I left federal service in 1998 and left my thrift in place. It is up to $80,000. I am married with five children and my husband and I file joint returns. He is in federal service and I stay at home. Our credit card debt has become staggering and I would like to withdraw all my funds, which after considering the 20 percent withheld by thrift and 10 percent penalty, I would have about $56,000, which would be more than enough to wipe our credit card debt slate clean. What else should I take into account before making this…
Q: I plan to retire this year under FERS and I am considering accepting a job after retirement that will put me over the earnings limit for the supplement. I understand I will lose it or it will be reduced for every year I earn too much. My question is, am I only penalized for the additional years I work? If I retire at age 56, work two additional years that eliminate my SRS, would it then be reinstated for me from age 59-62 when social security kicks in, or would it be reduced/forfeited forever? A: The special retirement supplement…