Q: I understand that funds in the CSRS voluntary contributions program can be withdrawn at any time prior to retirement. Does this action close the account prohibiting additional contributions? Or can withdrawals be made periodically for such purposes as rolling them into a Roth IRA? A: You cannot make a partial withdrawal.However, you may withdraw all of your voluntary contributions, plus accrued interest, at any time and for any reason. Once you have closed out your voluntary contributions account, it can never be re-opened again. Note: If you separate from the government and come back later in a CSRS-covered position,…
Monthly Archives: December, 2011
Q: I read with interest the question about annuity reduction, and found your response confusing. The question was: “I am a retired federal employee and I was receiving a monthly annuity of $4,200, but when I recently turned 62, OPM reduced my annuity to $3,550,and told me it was because I was eligible to collect Social Security benefits, even though I am not collecting Social Security benefits and do not plan to do so until I am at least 65. I did have two years of active military service, which I paid for while I was working, so that those…
Q: I am a federal firefighter working in a “secondary firefighter” position. My LES shows a FERS retirement code of “K.” What benefits/retirement does this code entail? I also heard that legislation is in the works to increase the mandatory primary firefighter retirement age from 57 to either 62 or 65? Is there any truth to that? A: “K” applies to anyone covered by FERS and FICA who will be entitled to regular retirement benefits. Any period of service which is classified as “K” isn’t covered service for law enforcement or firefighter retirement purposes. I don’t pay attention to legislation…
Q: I served as a military policeman on active duty in the Army from 1981 to 1983. I purchased this time for credit for my federal retirement. Can this time be used under the FERS law enforcement officer retirement? The MP duties meet the requirements and definition of a federal LEO under FERS. I believe CSRS does not credit this service. A: No. The law is clear. Only civilian law enforcement officer service counts when determining an employee’s eligibility to retire under the special provision and receive the more generous annuity computation. When you are eligible to retire as a…
Q: Will my spouse receive cost-of-living adjustments on her survivor annuity after my death? A: Yes.
Q: In a previous post, there was this question: I have 24 years combined service with the postal service and the military. If I retire next year, I will be 58 with 25 years of service. If I retire, would I be charged the 5 percent reduction in retirement for two years because I will be 60 in two years, or would I be penalized the 5 percent for 4 years, since I would not be 62. You replied: You’d be penalized 5 percent for every year (5/12 percent per month) that you are under age 62. My question is:…
Q: I have worked for the Veterans Affair Department for the past 16 years. My husband retired there, and has us on his FEHB health insurance plan. With open season coming up, we would like to take individual plans. Will this mean I have to work five years before retiring if I do, or is that only for life insurance? A: No, you won’t have to work five years. The only requirement is that you be enrolled in or covered by the FEHB program for the five consecutive years before you retire.
Q: As a CSRS civil servant, when I retire Social Security informs me I will receive approximately $588 per month at age 66. Most of my Social Security benefits were earned before civil service. I understand that once I retire, my Social Security will be cut to around $325 per month. My wife is eligible for Social Security and is projected to receive approximately $1,150 per month. Due to CSRS retirement, when my Social Security is reduced to around $325, can I have my Social Security increased up to half of my spouse’s $1,150? That would put it back to…
Q: I am a 57-year-old employee in the federal court system with five years of qualified service. If for some reason the judge I work for should decide to leave or be unable to work, my position would officially end. If I cannot find another position with the court, would I be able to continue my FEHB health care coverage after my job ends? A: You would be able to continue your FEHB coverage for up to 18 months under the Temporary Continuation of Coverage provision. You would be required to pay the whole premium, plus 2 percent to cover…
Q: If an individual retires using an approved VERA at age 53, three years shy of mandatory retirement age, with 28 years of service, will the individual begin collecting the special retirement supplement at age 56 even though retirement occured at age 53? A: Yes, if the individual’s minimum retirement age is 56.