CSRS Offset and severance pay


Q. When my job was moved during a base realignment and closure, I elected to leave the organization and take my chances in the Priority Placement Program. As a result, I received a severance package that was to provide me a “wage” until I was placed by PPP.

Unfortunately, I was never placed and at the end of the one-year period and was released. How does that severance payout affect my retirement calculation? Is severance pay resulting from BRAC and PPP a separate issue that has nothing to do with retirement?

I am within three years of retiring. At that time, I’ll have 19 years as CSRS and eight years as CSRS Offset. I’ve researched various aspects of how retiring as CSRS Offset at 60 will be affected when I turn 62. I just don’t want to reach my last day at work only to be told I have to pay back the severance pay before I can receive my first retirement check.

A. It’s a completely separate issue. Severance pay has nothing to do with retirement. And you wouldn’t have to repay the money you received even if you returned to work for the government.


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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