Q: I am a GS-14 Step 6 Federal 1811. With my locality pay (New York) and availability pay, I am subject to the bi-weekly and annual pay cap. For calculation of my high-3, do they use my grade plus locality plus availability pay (as per the charts) or do they use the lower amount that I got paid due to the pay cap? A: Your annuity will be based solely on the highest three consecutive years of average pay that you actually received, the amount from which retirement deductions were taken.
Monthly Archives: February, 2012
Q: My wife, age 66, has retired and is collecting Social Security. When I, age 67, retire under CSRS, will I be able to collect any amount of the normal half of the spousal Social Security? A: Probably not. Because you’ll receive an annuity from a retirement system in which you didn’t pay Social Security taxes, you’ll be subject to the government pension offset. The GPO will reduce your spousal benefit by $2 for every $3 you receive in your annuity.
Q: I have been trying to find CFR’s or other federal regulations that instruct how disability retirement annuites are to be reduced from 60 percent to 40 percent after the first year. My annuities were never reduced automatically by the Operations Retirement Center. The IRS and I noticed something wasn’t right on my 1099R, so I initiated an ivestigation to look into my account. They discovered an overpayment for the last two years, now they want it paid back. So, I am pleading my case and want to find regulation language describing that OPM is responsible or is supposed to…
Q: I retired from federal service in 2003 at age 57 under the CSRS Offset program. I am almost 66. I recently began my application for Social Security benefits and during this process “discovered” that my CSRS pension has never been adjusted for the Social Security offset which should have occurred at age 62. Is OPM going to want a retroactive repayment of the amounts I would have collected from Social Security if I had applied at age 62? How should I proceed? A: OPM will have no choice but to seek a refund of the overpayments you received. When…
Q: I will become eligible for Tricare in March. Is there a need for me to continue coverage with FEHBP and if not, can I drop my coverage before the end of the fiscal year? I don’t turn 60 until March, which is when I become officially retired from the military reserve. A: You can apply to suspend your FEHB coverage at any time. To do that, you must submit a completed suspension form and provide necessary documentation to show eligibility for Tricare or CHAMPVA during the period beginning 31 days before and ending 31 days after the date you…
Q: My wife and I are federal employees. I’m under CSRS and will probably retire in 2012 with 40+ years of service at age 62. She is under FERS and not eligible to retire until 2017. We’re enrolled in a family FEHBP under my name. Does it make sense for us to swap during this Open Season so that we are covered by a family plan under her name and paid for by her pre-tax dollars? Are there procedural risks of me dropping coverage and her new election not going through, which would jeopardize me meeting the five-year rule for…
Q: I’m a full-time CSRS employee with 33 years. Next year I will be 62 and have sufficient credits to qualify for a small Social Security payment because of prior years of nonfederal work. I understand WEP, my question is about getting Social Security benefits while continuing to working full time in $50,000 a year job as a CSRS employee. At age 62, can I receive both Social Security retirement payment and continue to work full time as a federal employee? Do I fall subject to the age 62 Social Security retirement $14,160 income limitations in this situation? A: Yes,…
Q: My friend is a retired civilian under the FERS program. When he retired in the 1990s, an amount of some $6,000 was reduced from his annuity to provide for his wife’s survivor benefits. His wife died before him, so there were no survivor benefits paid. Now he wants to remarry. Will his new wife receive survivor benefits based on the old deduction, or will another deduction take place? A: While he can elect a survivor benefit for his new wife, there will be two reductions in his annuity to provide it. First, there will be the standard reduction to…
Q: I receive military retirement pay under FERS for 21 years of service in the Air Force. I started working a job as a federal civilian employee two years ago. I did not buy back my military time. If I continue to work as a federal civilian for another seven years (bringing my total federal service to 30 years), how will my retirement pay be affected? Will my monthly retirement pay increase? A: If you don’t make a deposit for your active-duty service and, at retirement, waive your military retired pay, you won’t get any credit for it in determining…
Q: I served 16 years of active-duty military, then separated and took a federal job and paid my military buyback in full. If I decide to leave the government before I retire, can I have my military buyback refunded to me? A: Yes, but only if you accept a full refund of all your retirement contributions. Doing so would void your right to a future retirement benefit.