Q. I know that the Social Security supplement is reduced for any earnings above $14,640 (FY 2012). My question is that if I retire at the end of February 2012, would I already lose some of the supplement since I would have already made over $20,000 by the end of February? Or would the earnings test be only for the period of March 2012-December 2012? A. No, you wouldn’t lose any of your special retirement supplement because you’d be protected by the “first year rule.” To learn why that’s so, go to http://www.socialsecurity.gov/pubs/10069.html.
Monthly Archives: January, 2012
Q. I am a Civil Service Retirement System retiree approaching age 65. My wife and I have been covered by Blue Cross/Blue Shield Standard Option FEHB since retiring in 2002. My wife will not be eligible for Medicare until 2013, and she has never been employed by the federal government. Do I maintain my Federal Employees Health Benefit plan for both of us in order for her to be covered? Or is there some provision that will permit me to pay a Medicare Part B premium for my portion of the health care coverage out of my annuity while maintaining…
Q. I am a federal annuitant and have Federal Employees Health Benefit Plan 105 for myself and my spouse. We also subscribe to Medicare Part B. Since there are overlaps between Medicare Part B and FEHBP, I am considering stopping Medicare Part B. How do I do a cost-benefit analysis of retaining vs. stopping Medicare Part B? Also, please let me know about which state and federal help agents I can approach. A. To the best of my knowledge, there isn’t any publication or software that will allow you to do a cost-benefit analysis. There are simply too many variables.…
Q. I am a federal firefighter who will retire in the next year and I have a question about my sick leave. I am under the Civil Service Retirement System, and at retirement, I will have 35 years of creditable service. I understand I should get the 80 percent maximum entitlement of my base pay at retirement. I want to clarify how my unused sick leave will be calculated into my retirement annuity. At retirement, I will have almost 5,000 hours of sick leave. I was told that I would receive an additional 2 percent added to my retirement annuity…
Q. I would like to retire under the Federal Employees Retirement System at the age of 60, at which time I will have 30 years of service. Can I defer my pension to age 62 in order to avoid the 5-percent yearly penalty and continue my health care coverage without collecting my pension for these two years? A. You have nothing to worry about. The only FERS retirees subject to the age penalty are those who retire under the MRA+10 provision (minimum retirement age with between 10 and 29 years of service). You wouldn’t be penalized if you retired at…
Q. I am a FERS employee with 24 years of service; I am 49. I started at the IRS in May 1987, and my birthday is in October 1962. My agency may offer an early out very shortly. However, it appears I miss the 20 years/age 50 or the 25 years/any age requirement by less than one year. Is there any way I can take the early out if offered and pay the 5-percent penalty in order to qualify for the early out, and get an immediate annuity? If yes, would I still get my health insurance? Or am I…
Q. I am a 57-year-old Federal Employees Retirement System employee eligible for retirement. I am also a widow. Can I retire and receive the special retirement supplement until age 60, then take the Social Security widow’s benefit — which would be greater than my SRS — and keep that until I reach full retirement age at 66? Could I also delay retirement until age 60, bypass SRS and take the widow’s benefit? A. Relax. The Office of Personnel Management automatically pays the special retirement supplement until age 62 to FERS employees who retire on an immediate, unreduced annuity. The SRS…
Q. I’m 52 years old. I bought back my active-duty time while I was working at a federal prison. This gave me 15 years with the federal prison. I am now working in a non-law enforcement job at the Veterans Administration and have five years with the VA system, which gives me 20 years’ service in total. I know that I will retire with 20 years in the Federal Employees Retirement System, but my question is, will I get the credit for the law enforcement retirement, which is at 56, or the regular FERS retirement at age 60? A. The…
Q. I am 64 and don’t have enough credits to get Social Security. I will turn 65 in October. Will I be eligible for Medicare? If not, do I still sign up for it? My husband retired from Ford Motor Company and is 61. He will turn 62 in April. He plans on getting on Social Security at that time. Will I then be able to get Medicare? A. The answer to both questions is no.
Q. I am a former air traffic controller, age 62, retired on disability in 1979 (before the 1985 Medicare Act). Because I was never eligible to pay into Medicare, Social Security tells me that I am forever ineligible for Medicare benefits. OPM says that is not so, but hasn’t provided a law to challenge Social Security’s decision. OPM suggested that there is a rule just for people like myself, which uses a 10-year combined service (Civil Service & Social Security) rule to determine eligibility. I am unable to find such a rule and I’m not in financial condition to hire…