Monthly Archives: January, 2012

Q. My wife is five years older than me. If I draw early Social Security at 62 (she’ll be 67), and she waits until then to draw hers, will she be eligible for the spousal benefit where she receives half of my amount because her full benefit is less than half, or do we have to wait until I’m full retirement age for her to receive it? A. No, you don’t have to wait. She will receive the larger of the two benefits: her own earned benefit or the spousal benefit based on your record.

Q. I served on active duty in the Army for three years (May 30, 1996, to May 29, 1999) and got an honorable discharge. My employment since is as follows: May 1999-Oct. 1999 seasonal with Agriculture Department; May 2000-Aug. 2000 seasonal with Agriculture Department; May 2002-July 2004 full-time with Defense Department; Oct. 2008-March 2010 full-time with Interior Department; and July 2010-current full-time with Agriculture Department. I sent in a RI 20-97 for my estimated earnings during my time in the military and have a number: $40,560. Human Resources has computed an estimated buyback amount for my military time — $1,761.30…

Q. I am 68 and still working. I am fully covered by my employer’s insurance. My employer is switching our health insurance to a health savings account in 2012. You cannot contribute to a HSA if you have Medicare Part A. I have Medicare Part A. Should I drop Part A, to enroll in the HSA, or will I be penalized later when I retire and re-enroll in Part A? A. I don’t know if it makes sense for you to disenroll from Medicare Part A. Before you decide, you need to understand a few things. First, if your employer…

Q. I am currently off work and getting compensation from the Office of Workers’ Compensation Programs. If the Postal Service offers early retirement, can I take the offer and retire while on workers’ comp? I am 52, and have more than 30 years of service. I have applied for disability retirement, but if an early out is offered, I would rather go that route instead, if possible. A. I’m not aware of any bar to your accepting an offer of early retirement.

Q. Can an employee who is a military retiree receive a voluntary separation incentive payment? My understanding is that they can, but only their civil service time would be used for a VSIP calculation. We are being told by a regional HR office that military retirees in federal service are considered “re-employed annuitants.” A. Yes — if you are offered a voluntary separation incentive payment you are free to accept it. And yes, the amount you could receive would be based on your actual civilian service. Note: I’ve never heard of a retiree from the armed forces being referred to…

Q. I’m retired under the Federal Employees Retirement System, and have been retired for over 10 years. I was injured on the job, unable to perform the work I was doing, and have had to change to an office job. I was lucky enough to be employed by the state and had really good insurance. So I opted out of my FERS medical benefits and received a larger annuity monthly payment. I didn’t think at the time that double insurance was needed. I am 47 now, still disabled and unable to return to my government job. I continue to receive an…

Q. I retired from the Air Force last year after 27 years and now work as an Army civilian. I plan to work 10 more years, then retire at age 67, when I will have a combination of my Air Force retirement, Federal Employees Retirement System retirement and Social Security. To what degree, if at all, would I benefit financially from using the military buy back to pay into FERS? How many years should I buy back, and how soon should I do it? A. If you made a deposit for your active-duty military service, you would get credit for those…

Q. I have 37 years civil service with the government (CSRS) and plan to retire either Dec. 31, 2012, or Jan. 1, 2013. If I do not use any of my use-or-lose leave and I retire Jan. 1, 2013 will I get paid for the use-or-lose leave for 2012 and 2013 in one lump sum? How is this sum taxed? A. Lump-sum payments for unused annual leave are taxed as earned income. FYI: The 2012 leave year ends Jan. 12, 2013. If you retire Dec. 31, 2012 (a Monday), or Jan. 1, 2013 (a Tuesday), you wouldn’t be retiring at the…

Q. I am currently a GS career-conditional (1½ years) employee. I have 10 years of military time that I would like to buy back. If I buy back my military time, would that increase my time as a GS employee (10 years + 1½ years = 11½ years). Would that change my status from career-conditional to career status? Or would I be buying back my military time just for retirement? A. Making a deposit for that period of active duty service would increase your years of service as a civilian employee; however, it would not change your status from career-conditional to career.

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