Q. I am 55 with 24 years, and I am in the CSRS/Offset system. I took a VSIP in 1994 but was told at the time it would not affect the calculation of my retirement when I was ready to retire.
1) How would I find out if the 1994 VSIP does affect my annuity? I received a lump sum of $14,000, and it included my retirement and annual leave.
2) Do I have to redeposit those retirement funds to receive full annuity? If I retire at 56 with 25 years, how will my retirement be penalized?
4) What is the earliest I can retire with no penalty?
A. 1) Accepting a Voluntary Separation Incentive payment won’t affect your annuity.
2) You will get credit for that earlier period of service in determining your eligibility to retire. However, because you took a refund of your retirement contributions after Feb. 28, 1991, it won’t be included in your annuity computation unless you redeposit that amount, plus accrued interest.
3) Unless you are offered an early retirement opportunity, you won’t be able to retire until you have 30 years of service.
