Q. I’m retired from the Postal Service, and I would like to know if the USPS offers supplement insurance through the Medicare D program? Will I need to go outside of the Postal Service for my supplement insurance? I turn 65 in January. A. Neither the Postal Service nor any other agency of government offers supplemental insurance. You’re on your own.
Monthly Archives: December, 2012
Q. I turn 56 in August. Is the earnings test calculated from Jan. 1 or after my birthday? A. The Office of Personnel Management only reduces the special retirement supplement of FERS retirees after it is notified by the Social Security Administration. Give them a call at 1-800-772-1213.
Q. I am a Postal Service employee with 28 years of service. I am 58 years old and am considering the Voluntary Early Retirement Authority offer. I have gone to the Social Security website to find out how much I would receive at age 62. I need this number to calculate the amount that would be included with my FERS VERA annuity. Can you help? A. You can estimate what your special retirement supplement would be using the following formula: Take the Social Security benefit at age 62 provided to you by the Social Security Administration, multiply it by your…
Q. I resigned from the federal government in 2002 and have now been reinstated in 2012. Am I entitled to my sick leave balance back? A. Yes.
Q. I am 54 and have 28½ years in with the Postal Service. My first official retirement date is July 9, 2014. However, I am being told that if I retire now with the Voluntary Early Retirement Authority, my annuity will be higher than if I wait until 56 due to the 5 percent penalty for each year I am under 62. That would give me a 30 percent penalty on my annuity. Is this correct? I just want to go the way I will have the most in my annuity. A. The person you talked to was confused. If you…
Q. I am 56 years old with 27 years of employment at the Postal Service, all FERS years with no military. Contemplating taking the offer but confused about penalties for early retirement. A. Because you would be accepting an offer of retirement, there wouldn’t be any age penalty.
Q. In reviewing many of your comments, it is fairly clear that if one were to take advantage of the Postal Service buyout, one would not receive the Social Security bridge supplement until the minimum retirement age is reached. I thought one had to serve one year following the year in which they reached their MRA to receive the bridge. Am I mistaken? Our specifics are: A postal worker, age 50, with 25 years of credited service, having been offered the buyout. If she does not take it, will she have to work to age 57 or 56 to retire…
Q. I am a 50-year-old FERS Postal Service employee with 25 years in. If my processing plant closes, am I offered a Voluntary Early Retirement Authority at that point? Can I retire instead of relocating? A. Whether or not a VERA is offered, if you receive a reduction-if-force notice, you could retire on an immediate annuity. That’s because an employee with 25 years of service who is facing involuntary separation can retire at any age.
Q. I’m a traditional CSRS employee with 35 years and no break in federal service. My retirement contributions have been taxed over the years through the bi-weekly payroll deductions. I also paid $5,000 to get credit for military time. When I retire, will some of my monthly annuity check be exempt from taxation since it is considered return of principal? How is this amount calculated? A. Your answer is in the Internal Revenue Service’s Tax Guide to U.S. Civil Service Retirement Benefits. You can download a copy at www.irs.gov/pub/irs-pdf/p721.pdf.
Q. I am CSRS Offset; how is sick leave figured into the equation? A. After you meet the age and service requirements to retire, any unused sick leave is added to your actual service and used in the computation of your annuity.