Q. I elected the 75 percent reduction after retiring. I understand that, at age 65, the coverage declines 2 percent per month until it reaches 25 percent of its face value. How can I find out what the “face value” is? Is it the salary at retirement? What if I had the 2X salary? Does that have any bearing? I have been told by some retirees that the final amount is $2,000, and by others that it’s anywhere from $8,000 to $10,000. A. When you retired, the amount of your basic insurance was equal to your basic pay plus $2,000. Since you…
Monthly Archives: April, 2012
Q. When I got hired into federal service, I made the Post-56 payment, and the amount of that payment showed on my leave and earnings statement in block 20. Later, I changed agencies, and block 20 became blank. I have my “paid in full” confirmation letter as proof of the payment. Should I be worried that block 20 is empty? A. No. Your “paid in full” confirmation letter is all you need.
Q. I was wondering if, like annual leave, you get a lump sum for sick leave (50 percent before January 2014)? A. Absolutely not. Sick leave has no cash value. When you meet the age and service requirements for retirement, it can be added to your actual service and used in the computation of your annuity. If you are a FERS employee, only half that time will be added if you retire before Jan. 1, 2014.
Q. What are my options for leaving government service now without an early-out? I am looking to relocate and have been applying for every job I see at government agencies in my new desired location with no luck. I have 23 years of continuous service, and I’m 52 years old. Can I just leave, then relocate on my own to where I want to move and try to get back into the government when there? What exactly do I give up if I do this — besides the salary? A. If you resign from the government, leave your money in…
Q. I am under the FERS retirement plan. In four years, I will be 57 with 30 years. Will I be penalized in any way? Also, will I be able to tap into my Thrift Savings Plan? A. Reg Jones says: Because you will be retiring at your minimum retirement age with at least 30 years of service, you’ll receive a full, unreduced annuity. Mike Miles says: You’ll have access to your TSP account after retire without penalty.
Q. Can I retire from the Veterans Affairs hospital under FERS at age 55 with 25 years of service and withdraw my Thrift Savings Plan in lump sum? Or do I have to wait until my minimum retirement age? Can I leave at 55 and defer my retirement until I reach my MRA at 56? A. Reg Jones says: You can’t retire until you reach your MRA, which is 56. If you retired then, your annuity would be reduced by 5 percent for every year you were under age 60 (5/12 of a percentage point per year). You could delay…
Q. I’m debating whether buying back my military time is worth the cost with the changes to the current FERS program. I have three years as a federal employee. I will complete the deposit on May 1, which will give me 23 years toward my retirement. However, I am unsure if I will fall under the current 0.8 percent FERS contribution program or the new 2.3 percent contribution program recently approved. I made my decision to buy back my time base on the old retirement system. Now I think I may have wasted my money. Can you provide some insight…
Q. I am a FERS employee. My minimum retirement age is 56, at which time I would have 27 years of service. I am considering retiring on a possible Voluntary Early Retirement Authority offer at age 55, with 26 years of service. I have done a little research on the Social Security supplement for FERS employees, which is paid until you reach age 62. Under a VERA, would I be eligible for this supplement at age 55, or at my MRA of 56? If at 56, could I still retire at age 55 under a VERA, and postpone the supplement…
Q. My husband is retired civil service employee and veteran. He draws a pension/annuity paycheck each month. Once he passes away, will this be lost, or will I receive it? We have been married since 1989, and I believe he retired in 1995. Also, I am currently covered by his medical insurance. Will I still be covered under this Federal Employees Health Benefits plan once he passes? A. Your husband was required by law to provide a full survivor benefit for you, unless you agreed in writing to a lesser amount or none at all. Assuming that he elected the full survivor…
Q. I am a 60-year-old CSRS career employee of the Postal Service with a planned retirement date of Sept. 1, at which time I will have 31 years and two months creditable service including unused sick leave. Would there be any advantage to retiring Sept. 3, which is a paid holiday? A. If you retired on Sept. 3 instead of the Sept. 1, you’d receive one more day’s pay and have your first month’s annuity reduced by 1/30th. The fact that Sept. 3 is a paid holiday doesn’t affect things one way or the other.