Q: I am 56 and was just shy of 30 years of service (21 years in CSRS and the rest FERS) as a GS-1811 before I retired at the end of 2007. Because I do not meet the MRA to collect Social Security benefits, I receive a FERS supplement instead. When I retired, my monthly Social Security benefit was calculated according to the annual salary that I had earned as a federal employee (GS 15). To subsidize my retirement, I now work for myself, and my annual salary is a lot less than I received as a federal employee. Because…
Monthly Archives: February, 2011
Q: I was involuntarily separated from my position as LEO under Civil Service Retirement System. I served for 22 years. I was separated at 47 because of a reduction in force. I have been unable to find another LEO position. I am a few months shy of 50. What are my options? A: If you could find a non-LEO job in the federal government, you would be able to retire at age 50 and have those 20 years of covered service computed under the enhanced formula and the remainder under the standard formula. However, it would be unfair to your…
Q: I am a FERS employee working for HHS/OIG. HHS has in past years offered buyouts, but I’ve been told that HHS/OIG employees are not eligible. If this is true, how can one department under one agency not be eligible? If government staff reduction is coming, shouldn’t any buyouts being offered be offered to everyone within that agency? Is there any action an employee should take to become eligible for buyouts? A: Voluntary separation incentives should not be offered to everyone within an agency. That would be a flagrant misuse of the authority. When approved by OPM, “an agency may…
Q: I am 58 with 16 years of federal service (FERS). I retired from the Army with more than 20 years of service. I am concerned that there would be significant penalties for retiring at my age and years of service. What are some of the factors and risks that I should consider if I decide to retire in 2012? What are the advantages of waiting until I have 20 years of service before retiring? A: Because you’ve reached your minimum retirement age, you could retire under the MRA+10 provision. If you did, your annuity would be reduced by 5…
Q: I am a FERS employee and have a total of 22 years on the job as an 1811 LEO. I also have four years of military credit that add up to more than 26 years with the government, but I am only 48. I am in the process of possibly putting in for disability retirement because of an eye condition I developed. What are my benefits and where exactly do I stand financially if given the opportunity to retire early? A: If you apply for disability retirement, you would also have to apply for Social Security disability benefits. That’s…
Q: I am a FERS-covered employee with 10 years of service with the VA. I also purchased two years of military service. I have decided to leave in September of 2011 at which time I will be 61. I know I should wait until 62 but I have had enough. What are my penalties? At a high-3 average of $100,000 per year I have figured an immediate benefit of about $1,000 a month minus 5 percent. Does that sound right? In addition, if I do leave at 61 am I eligible for immediate health care? A: Your annuity estimate sounds…
Q: I am 55 and have 29 years of government service (22 years in FERS and seven years in CSRS). I have been offered an early out by my agency and want to know what effect the early out would have compared to working one more year to reach MRA of 56 and 30 years. From what I’ve read under the VERA, there would be no penalty reduction in retirement benefits. Would I still be eligible to receive the FERS annuity supplement when I reach MRA in March 2012? Other than the delay in receiving the supplement and the reduced…
Q: I live in Hawaii where the phase-in for locality pay is taking place. If I leave for one year (for 2011), return and retire on Dec. 31, 2012, can I still buy in to year 2010 for my high-3 computation as part of the buy-in program for anyone retiring by Dec. 31, 2012? A: Only your agency can answer that, with the help of OPM if they are uncertain.
Q: I am a post office employee under FERS. I am 40 and have 15 years of service. If I quit my job, will I receive a pension at the qualified age of 62? Will I be penalized? How is this computed? A: If you left your retirement contributions in the retirement fund, at age 62 you would be eligible for a deferred annuity, which would be calculated using your high-3 and length of service on the day you left government. The formula is simple: 0.01 x your high-3 x your years and full months of service.
Q: I have been receiving a civil service disability since 1999. I turn 65 in April 2011. My spouse is covered under Blue Cross-Blue Shield that I have with the disability annuity. Must I enroll in Medicare at 65 — thus forcing my spouse to be without health care coverage? Or can I continue to get disability benefits and be covered by Blue Cross-Blue Shield? A: Signing up for Medicare doesn’t alter your right to continue your enrollment in Blue Cross-Blue Shield. Part A coverage is free because you paid for it through mandatory payroll deductions. Enrolling in Medicare Part…