Q. I am 48 with 25 years of federal service under FERS. I am considering my options and was wondering what would be the ramifications of leaving government service by resignation or early retirement, if available. A. If your agency offered you an opportunity to retire early, you could do that. If it didn’t, you couldn’t. With early retirement, you’d receive an annuity computed as follows: 0.01 x your high-3 x your years and full months of service. You wouldn’t be eligible for the special retirement supplement until you reached your minimum retirement age (56) and your first cost-of-living adjustment…
Monthly Archives: November, 2012
Q. I am a postal employee in FERS. I received a document from my human resources department, which states that my retirement eligibility date is May 19, 2016 (I was born in 1960). Does this mean I will receive the special retirement supplement even though I began employment with the Postal Service on Feb. 8, 1988, which only gives me 28 years of service time? I thought the FERS annuity supplement had the requirement of 30 years service time and age 56 for me. I have to make a decision by Dec. 3 as to whether or not to take…
Q. I am retiring Nov. 30, which is the 24th pay period of 2012. Will I earn the eight hours of annual leave and four hours of sick leave during this pay period since I am retiring before Dec. 1, which is technically the last day of the pay period? A. As long as you retire at the close of business Nov. 30, you’d be entitled to any annual and sick leave you earned during that pay period.
Q. I have about $1,500 in my flexible spending account. Typically, you have until March to use the funds. What happens in my case? Is the unused amount refunded to me on Jan. 1? Do I still have until March, or do I lose the unused amount? Also, Dec. 31 is a Monday and New Year’s Day, a federal holiday, is Tuesday. If the president gives federal employees all day off on Monday, will the Office of Personnel Management still count the 31st as my last day of work even though I will do all the paperwork in my agency…
Q. My friend, a co-worker, was diagnosed with cancer about a year ago. She is at the point where she may have to go into hospice. She is looking into applying for disability retirement, but is there another option if an individual may not live long enough to receive all of her retirement pension? Can she withdraw her total retirement and not be penalized for federal taxes? Will her creditors take her life insurance? A. If she were to resign from the government, she could request a refund of her retirement contributions. Because she already paid taxes on those contributions…
Q. Is the cost-of-living adjustment computation made before or after the survivor annuity reduction is made? If I retired with a $50,000 retirement, approximately $5,000 per year would be deducted. Would the increase be adjusted to the $50,000 amount or the $45,000 amount? A. Cost-of-living adjustments are only made to your base annuity, not the amount you would have received if you hadn’t elected a survivor annuity.
Q. I am a CSRS annuitant age 66.5 w 32+ years of federal government service that includes six years of military service. I retired in 2001 at age 55 and have been working full time, paying the maximum required into Social Security for the past 11+ years. I have not filed for Social Security yet, and I’ll probably work full time for at least another year before retiring for good. I am confused by CSRS Offset, especially the terminology. I am assuming the 32 years of government service, 26 civil+6 military, are what is referred to as my “offset service.”…
Q. Who is eligible for phased retirement under the bill that Congress passed that will allow retirement-eligible federal employees to work part time? A. The law applies to anyone who has met the age and service requirements to retire on an unreduced annuity except for law enforcement officers — including Customs and Border Protection, Capitol Police and Supreme Court officers — firefighters, nuclear materials couriers and air traffic controllers, all of whom face a mandatory retirement age. However, the decision on whether to use the new authority rests solely with the employee’s agency.
Q. I am going to be starting with the federal government in December. How much will I be contributing to my pension account? Will it be 0.8 percent or 3.1 percent? This will be my first job with the federal government. A. If you are hired before Dec. 31, you’ll be contributing 0.8 percent of basic pay. Anyone hired after that, or who returns to government employment with fewer than five years of service, will be contributing 3.1 percent.
Q. I turn 48 this month. I’m seeking federal employment. Can I still earn a retirement pension from the federal government at age 68? I’m looking into becoming a program analyst, contract specialist or something within business operations. I will not look into positions involving law enforcement, firefighting or air traffic control, where I hear those folks are limited to a maximum age. A. If you are hired by the federal government, your age won’t be a factor. You’ll be able to retire as soon as you have five years of service. And each year you work beyond that will…