VERA/VSIP, annuity, WEP and SRS

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Q. I am considering requesting a Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay and being off the rolls by March 31. My service computation date is Feb. 28, 1982 (CSRS and FERS). On Feb. 28, 2014, I will have 32 years of combined service (CSRS and FERS). On April 11, 2014, I will be 58 years old.

I transferred to FERS on March 30, 1994. Therefore, I will have 20 years under FERS on March 30, 2014.

I previously withdrew all of my retirement funds from CSRS, and never paid them back. I understand that although I did not repay my refund, the period of service will count toward length of service, but no annuity. Is this correct?

I had received a FERS benefit report that reflects CSRS service credit as 11 years, seven months and six days, but because some of that time was nonpaid deposit or redeposit, I will only receive eight years, 11 months and 27 days of CSRS service credit. My unpaid CSRS deposit is $627, and my CSRS redeposit is $30,607. Therefore, I am unable to pay all of this back prior to my retirement — and will have to pay a penalty, I am sure.

Since all of my annuity will be coming from FERS, will I be affected by the windfall elimination provision?

I have no survivor benefit, spouse deceased, which should make me eligible for Social Security widow’s benefit at age 60. How will this affect my special retirement supplement? Will I have to contact the Office of Personnel Management and report this change, or will they be notified by Social Security that I have filed?

Is the special retirement supplement equal to the Social Security benefits I will draw at age 62, or is it less?

A. While you will get credit for your period of CSRS employment in determining your eligibility to retire, it won’t be used in the computation of your annuity unless you redeposit that money plus accrued interest. Since you don’t plan to do that, your annuity will be based solely on your FERS employment. Because of that, you shouldn’t be subject to the WEP.

The special retirement supplement is based solely on your FERS-covered employment and doesn’t include any other Social Security-covered employment you may have had. Since the SRS is paid out of the Civil Service Retirement and Disability Fund, it wouldn’t be affected by your receipt of a Social Security widow’s benefit.

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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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