Q: Can you explain the differences between the Windfall Elimination Provision and the Government Pension Offset? A: The windfall elimination provision reduces (but doesn’t eliminate) the Social Security benefit of anyone who receives an annuity from a retirement system, such as CSRS, where he didn’t pay Social Security taxes and has fewer than 30 years of substantial earnings under Social Security. The government pension offset reduces the Social Security spousal or survivor benefit of anyone who is receiving an annuity — in whole or part — from a retirement system, such as CSRS (but not CSRS Offset), where he didn’t…
Monthly Archives: April, 2011
Q: If a person is 61 with 30 1/2 years of service (CSRS), can they still be offered a VSIP? If they have already submitted paperwork for the retirement process, could it still be offered? A: No. The purpose of the Voluntary Separation Incentive Program is to provide a financial incentive that will encourage employees to leave who would otherwise not do so. Of course, you could pull back your retirement application and wait to see if you’d be offered a VSIP in the future.
Q: My current position requires an extensive amount of overtime. I was told recently that my overtime may count toward my retirement. Is this true? If so, how is that applied toward my retirement? A: You were misinformed. Overtime is never included when determining a High-3, only pay from which retirement deductions are taken. To see which pay categories are included and excluded from basic pay, go to www.opm.gov/retire/pubs/handbook/C030.pdf and scroll down to Section 30A1.1-2.
Q: I recently retired from AD USAF after 20 years, and immediately was hired as a WG-2 on base. I read the rules for leave accrual rates, but I am unsure if I meet the first condition (retired from service during a Congressional declared war) or not as I served during the Gulf War(s) and the conflict in Afghanistan. I receive four hours per pay period. Do I qualify and for how much time? A: To find an answer to your question, go to www.opm.gov/staffingportal/vetguide.asp and scroll down to Service Credit for Leave Accrual and Retirement.
Q: The House passed a bill that would cut fed pay and benefits. What exactly does this mean in terms of the annuity calculation? What does this 5 percent increase on the backs of federal workers have to do with saving the government anything? Will Congress as a body of federal employees be exempt from the increase? A: The House passed a resolution containing the Republican majority’s proposals for the 2012 budget. As far as I can tell, it contains nothing that would affect the way annuities are calculated. It does, however, propose that the share that everyone covered either…
Q: I am in CSRS Offset and am eligible for an immediate voluntary retirement. I plan on continuing working until the end of 2012. There have been discussions about changing our retirement benefit to a High-5 calculation from the High-3 calculation. I want to retire before that change is implemented. If Congress passes and the president signs a retirement change like that, when would it become effective? Is it on the date the president signs the law, is the date designated in the law, or is it when OPM writes the rules implementing the law? What is the best way…
Q: I am a 52-year-old federal employee with 25 years of service. I plan on working five more years. I will then be 57 with 30 years. Will I be penalized in any way if I go out under a FERS immediate retirement? A: No.
Q: I was a civil service employee with DHUD from 1969 to 1978. I withdrew retirement funds at that time and have contributed to Social Security since then. I am 64 and am considering going back to work for a government agency with civil service retirement. Can I buy back into civil service retirement and, if so, how long would I have to work and contribute to CSRS to be eligible to retire with civil service retirement? A: If you returned to work for the government, you would be placed in CSRS Offset (CSRS and Social Security) with the option…
Q: My small government agency lost almost 25 percent of its budget for FY11, and for FY12 it will be cut an additional 25 percent. From now until Sept. 30, they plan on reorganizing, offering VSIP and VERA, cutting back on all contractors and reduce contracts, etc. After all of this, they project that they will be $500,000 to $600,000 short for this year, and they are looking at furloughing everyone for one day each pay period for the last five pay periods of the fiscal year (total five furlough days). My question is, does an agency have the discretion…
Q: If I were fired from my Federal Employees Retirement System-covered position several months before turning 62, would it affect my future eligibility to sign up for the group health insurance available to retirees, assuming that I already have enough years of service to retire? A: If you were already enrolled in the Federal Employees Health Benefits program and were eligible to retire when you were separated, you could retire instead and, as long as you had five years of continuous coverage, continue that coverage in retirement. On the other hand, if you were separated before you were eligible to…