Q. I am a CSRS employee who will be 55 years old in September 2015 and will have 38 years of federal service. Some are telling me to stay until I have 41 years because of the added benefit. What’s the big difference? I’d like to go as soon as I’m eligible.
A. The longer you work, the larger your annuity will be. If you work for 41 years and 11 months, your annuity will be 80 percent of your high-3. If you work longer, retirement contributions will continue to be taken from your pay. When you retire, they’ll be returned to you with the option of buying additional annuity. Like unused sick leave, it isn’t subject to the 80 percent limit. As I’ve often said, the time to retire is when you are emotionally and financially able to do so. I’ve know too many people who have died before reaching their highest high-3 or maximized their annuity.
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Would you expand a little more on explaining “When you retire, they’ll be returned to you with the option of buying additional annuity. Like unused sick leave, it isn’t subject to the 80 percent limit.” Thank you.
If you want to buy additional annuity, the amount you get will depend on your age. The older you are when you retire, the more additional annuity you’ll get. That’s because the amount increases by 20 cents for every full year you are over 55. If you are age 60, you’ll get $8.00 more per year. At age 62, it would be $8.40 more. At age 65, $9.00. At age 70, $10.00, etcetera. FYI: This additional annuity won’t be increased by annual COLAs.