Q: I am a former FERS employee who was placed on disability retirement by the U.S. Postal Service because of PTSD. I was 58 at the time with 14 years as a full-time employee. I was told that, after reaching age 65, my pay would change, and I would receive more. Does anyone know how this works? A: At age 62 – not 65 – your annuity will be recomputed using the standard FERS formula: 0.01 x your high-3 on the day you went on disability retirement x your total years of FERS service. The product will be increased by…
Monthly Archives: May, 2011
Q: I recently discovered that I would probably lose part of my anticipated Social Security benefits to the WEP because I lived and worked in Canada, as a Canadian citizen, before moving to the U.S. and later becoming a U.S. citizen. If I retire at my full retirement age, I will have 25 years of substantial earnings/contributions to U.S. Social Security, and will also receive payments from the Canada Pension Plan. The latter will total just more than $500 per month. Will my wife’s Social Security benefits, based on my earnings because she did not work the requisite number of…
Q: I am wondering if a person is retired from the Army, then goes to work for the U.S. Post Office and retires from there, does he get to collect both pensions? A: Yes.
Q: I have been non-retained in the National Guard, which means I lose my job as a military technician. I am 54, have put in 36 years in my job and I’m under FERS. Since I meet the 25-year any-age requirement for retirement, I will draw a retirement annuity. Since I’m drawing a retirement from FERS but lost my full-time job due to retention from the National Guard, can I still apply for unemployment compensation? A: Probably not. However, to be sure, you’ll have to check with your state employment security agency.
Q: You stated in an earlier response to someone that if they accepted a buyout and returned to federal service sooner than five years, they’d have to repay “what they received” plus accrued interest. However, what I “received” from my buyout after taxes was only about $16,000. Isn’t it true I’d have to repay the entire $25,000 if I returned early? My second question is, when was the $25,000 threshold first established, and why hasn’t it ever been adjusted for inflation? A: I should have been clearer. If you return to work before five years have passed, you would have…
Q: I’m a CSRS Offset employee with 18 years, 6½ months under straight CSRS, with 12 years, seven months at retirement April 30, 2012, and with at least 40 quarters earned under Social Security before federal service. Had an appointment the other day at the Social Security Administration to see what my benefits, Offset amount and Windfall amounts would be. The person who I talked to had no idea about the CSRS Offset, kept calling the WEP an offset, insisted that she never had to consider/calculate the offset amount for OPM, that OPM would do the calculations and she just…
Q: I am 48 years old, have 21 years of 6c covered law enforcement time under FERS and bought back a year of military time for a total of just over 22 years of federal service. I am looking at a possible promotion to Senior Executive Service, but it would be in a non 6c covered position. Once I turn 50, if for some reason I decide to leave government service altogether, can I activate my retirement then at age 50, or must I either stay until my minimum retirement age (55-57) or resign from government altogether and wait until…
Q: My wife was covered under CSRS and worked for seven years at the Veterans Affairs Department as a GS-4 ward clerk between 1982 and 1990 before having a break in service and then returning to federal employment under FERS (not CSRS-Offset, but that is another story). In her new position, she is in a 6c covered law enforcement job and she will soon be turning 50 with the requisite 20 years of 6c law enforcement coverage. When she left her job at the VA, she cashed out her retirement, and we now want to buy it back. I understand…
Q: Regarding the recent freeze on COLA, are these paid from appropriation type funds or from the “residuals” of the CSRS? Residuals being money made by the fund and that remain behind in the event the retiree dies before drawing all their contributions out as annuity payments? Even if a survivor gets half of the employee’s monthly payment, but still retired employee still has to buy an annuity for the survivor after retiring to keep health benefits. Just seems like lots of funds going in with only some coming out. I believe CSRS was established to run without appropriated funds…
Q: If offered voluntary early retirement at age 52 with 27 years of service, would an individual still receive the 5 percent FERS benefit reduction a year for each year under 62? In other words, are FERS folks still subject to the 5 percent penalty minimum retirement age rule that is part of the FERS Immediate Retirement policy? A: Any FERS employee who meets the age and service requirements for early retirement — age 50 with 20 years of service or at any age with 25 — and accepts the offer won’t be subject to the age reduction penalty.