Q: We have an employee who retired April 3, 2001, and was rehired as a reemployed annuitant, Oct. 7, 2002. The employee was coded with the retirement Plan of (1) CSRS and Annuitant Indicator of (1) Reempl Ann-CS. Is this correct, or should he have been coded as CSRS Offset? A: If he was a CSRS employee when he retired, he would be a CSRS reemployed annuitiant. If he was CSRS Offset, he’d be CSRS Offset. In either case, he would have the option of electing to be covered by FERS.
Yearly Archives: 2011
Q: I left federal service in 1998 and left my thrift in place. It is up to $80,000. I am married with five children and my husband and I file joint returns. He is in federal service and I stay at home. Our credit card debt has become staggering and I would like to withdraw all my funds, which after considering the 20 percent withheld by thrift and 10 percent penalty, I would have about $56,000, which would be more than enough to wipe our credit card debt slate clean. What else should I take into account before making this…
Q: I plan to retire this year under FERS and I am considering accepting a job after retirement that will put me over the earnings limit for the supplement. I understand I will lose it or it will be reduced for every year I earn too much. My question is, am I only penalized for the additional years I work? If I retire at age 56, work two additional years that eliminate my SRS, would it then be reinstated for me from age 59-62 when social security kicks in, or would it be reduced/forfeited forever? A: The special retirement supplement…
Q: I am 64. I spent two years in the military from 1975-77. I became employed by the Veterans Administration in 1981 and left in 1991 with about 10 years of creditable service under the Civil Service Retirement System. It is my understanding that at age 62 I could have applied for a deferred annuity, but did not do so. I am employed and anticipate stopping work in three years (age 67-68). Is there any advantage to delaying the initiation of my annuity (as is the case for Social Security)? Will this increase my monthly annuity and any possible spousal…
Q: In 2008, I retired involuntarily at 60, with 20 years under FERS, because of funding cuts. In 2009, I was re-hired in a permanent GS position by another department. My salary was offset by the amount of my annuity. I am planning to retire after completing at least five, or six+ years, in 20015-16. How will my re-determined annuity affected, under following conditions: (1) do I qualify for 1.1 percent per year rate, instead of 1 percent, as I have now; (2) my earlier high-3 was approx $120,000, at GS14-10 for all years, whereas as GS-13/10, in current job…
Q: I am a CSRS employee with 32 years of service and have held a full-time billet my entire career. After the birth of my second child, for six months I worked 20 hours a week and took LWOP on my timecard. This was an approved action by my supervisor and everything was in writing. My question, could this affect my retirement calculations? I was not officially part time, but when using the FedCalc there is a section to enter part-time hours and when I do, my final reports are definitely different. A: The combination of reduced hours and leave…
Q: I have read all the questions about sick leave. As a CSRS employee I have over the max years for credible service to receive 80 percent of my high three. I know my 2,087 hours of sick will garner me another 2 percent added onto the 80 percent. My question is, if I have more than the 2,087 hours of sick leave will I just loose those hours. A: There is no limit to the amount of unused sick leave for which you can receive credit when your annuity is computed.
Q: I am considering retirement after I have 30 years of service in two years. I will be 54 then. Can I begin drawing an annuity when I reach MRA (56) without penalty? Is there anyway to sustain FEHB coverage? Will I receive COLAs in the future under this scenario? A: You can’t retire at age 54. What you could do is resign from the government and apply for an age penalty-free deferred annuity at age 56. You would be entitled to any cost-of-living-adjustment made after you reach age 62. Note: You would not be able to re-enroll in the…
Q: I entered 1811 service at 36 after five years of military time and six years of non-1811 federal service. I have bought my military time in. Am I correct in calculating the following for retirement: 20 x 1.7 = 34 percent 6 x 1.0 = 6 percent (non-1811 federal service) 5 x 1.0 = 5 percent (military time) Total: 45 percent of high three. A: Yes.
Q: I am a retired civil service worker. Could someone tell me why I pay more for Medicare than people who draw Social Security? This is plain discrimination. I think it’s time for a class-action lawsuit. A: Those who receive a Social Security benefit are covered by the “hold harmless” provision of the Social Security Act. The law protects more than 70 percent of Social Security beneficiaries from paying a higher Part B premium, in order to avoid reducing their net Social Security benefit. Those not protected include higher income beneficiaries subject to an income-adjusted Part B premium and beneficiaries…