Q. I was a rural route mail carrier from Feb. 20, 1979. I quit in July 1986 and was rehired in November 1986. I was put on civil service offset. There was not a year break in service, but when I turned 62 my pension was cut almost in half. Why? A. If you were covered by Civil Service Retirement System when you worked as a rural route carrier and retirement contributions were taken from your salary, you should have been placed in CSRS when you returned to work. However, it’s too late to do anything about that now. Fortunately,…
Monthly Archives: August, 2011
Q. I am a Federal Employees Retirement System employee and plan to retire at my minimum retirement age (56), with 31 years of service (July 2016). It is my understanding that my retirement income would consist of three components: pension, Thrift Savings Plan annuity, and Social Security supplement, until age 62. I also know that the SSS is subject to the minimum earnings test. However, the pension portion of my retirement will not be subject to the minimum earnings test. Will my TSP annuity be subject to the earnings test? If so, what options do I have to allow me to receive the SSS until…
Q. I am a Civil Service Retirement System Offset former employee, and I retired on disability prior to age 62. Afterward, I worked in the private sector and contributed to Social Security and was thus able to qualify although I do not have 30 years work history in the private sector. I receive both Social Security Disability Insurance and a CSRS disability pension. Will my Social Security be offset prior to age 62 even though my Social Security contributions came from both CSRS Offset and private industry contributions? I also have Medicare Senior Advantage-Kaiser and wonder if my health care coverage under CSRS…
Q. How may I check on the status of my military buyback (P-56), as a Federal Employees Retirement System employee seeking retirement? My Civilian Personnel Advisory Center (Fort Hood, Texas) and I spent a year (two years ago) going over the rules and regulations affecting the size of my future pension (with and without a military buyback). I have 9½ years active duty from 1969 to 1979, 17 previous years (Civil Service Retirement System), from 1980 to 1997 (I resigned). And, I now have accumulated five current years (2006-2011) as FERS. The later counseling included sending my DD-214s and the RI-20-97 packet to…
Q. I applied for disability retirement in February 2009 (Federal Employees Retirement System). I was approved in June 2009 and immediately began to receive interim payments. However, I’ve tried unsuccessfully to contact the Office of Personnel Management regarding finalizing my annuity. I took voluntary early retirement at age 53, and I cannot seem to get any information regarding finalization. They only tell me that once it is finalized, I will be notified within seven to 10 business days. I’ve seen in your column where there was a person owing $23,000 after his annuity was finalized and having to have $500 withheld from…
Q. I am a Civil Service Retirement System federal employee who is considering taking the Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay offered if I am approved. Are you taxed at a higher percentage rate on the $25,000 than you are taxed on your regular salary? According to the tax bracket table, my salary is taxed at 25 percent or 28 percent. A. Buyout incentives are taxed as ordinary income, just like your wages.
Q. My husband retired at 67 in October 2010 with 15 years of service under Federal Employees Retirement Service. He currently has Tricare for Life through his previous 30-year military retirement. It has become apparent that his policy does not cover as much as mine. I am a current employee planning to retire in 2012. I have a single FEHB. Since we have no dependent children to cover, it would seem that two single policies would be a better cost option for us. Could he sign up for a single policy during the next open season or would I have to add him…
Q. My husband and I are currently in Federal Employees Retirement System interim disability status as our claims have not been finalized. Social Security has denied us both. We do not understand what happens when our claim is finalized. Do we both only get 40 percent of our high-3, even though we will not have Social Security to supplement our income? I have 23 years at a high-3 of $78,000 and my husband has 14 years at a $55,000 high-3. Any help you could provide would be greatly appreciated. A. Because you weren’t approved for Social Security disability benefits, for…
Q. My son is about to turn 22 and his dental coverage is ending. We are with United Concordia. Can you tell me if any other federal dental programs are available that will cover a full-time college student after the age of 22? Thank you. A. The Federal Employee Dental and Vision Benefits program only provides coverage for unmarried dependent children under age 22. However, if your son is covered under your Federal Employees Health Benefits Program enrollment, the more limited dental services available there would continue to age 26.
Q. I was hired July 29, 1985, under the Federal Employees Retirement System with the Defense Logistics Agency. I was never given an option for the older retirement system. Is there anything I can do after 26 years of service? I work for the Department of Housing and Urban Development now. Am I correct that FERS started in 1987, not 1985? A. You are in the right retirement system. Here’s why. Because you were first hired between Dec. 31, 1983, and Jan. 1, 1987, you were placed in an interim retirement system: the Civil Service Retirement System and Social Security.…