Based on the mail I’ve been getting, there’s a lot of confusion about the rules governing deposits and redeposits to get credit for prior service in determining your eligibility to retire and having that time used in your annuity computation when you retire. In this column, I’ll deal with the rules that apply to Civil Service Retirement System and CSRS Offset employees. In my next column, I’ll do the same for Federal Employees Retirement System employees. Deposits The term “nondeduction service” applies to any period of federal government employment where retirement deductions weren’t taken from your pay. If you are…
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Based on the mail I’ve been getting, there’s a lot of confusion about the rules governing deposits and redeposits to get credit for prior service in determining your eligibility to retire and having that time used in your annuity computation when you retire. In this column, I’ll deal with the rules that apply to Civil Service Retirement System and CSRS Offset employees. In my next column, I’ll do the same for Federal Employees Retirement System employees. Deposits The term “nondeduction service” applies to any period of federal government employment where retirement deductions weren’t taken from your pay. If you are…
Q. When you stop working and start receiving pension benefits I know Federal taxes can be withheld, but I am not sure if Medicare and Social Security are still deducted. Are they?
If you are a federal employee, every pay period retirement deductions are taken from your salary. Retirement Deductions If you are a CSRS employee, that deduction is 7 percent (7.5 percent if you are a special category employee, such as a law enforcement officer, firefighter or air traffic controller). If you are a CSRS Offset employee, it’s also 7 percent (7.5 percent if you are a special category employee); however, because you are covered by both CSRS and Social Security, 6.2 percent of that amount goes to pay for Social Security Old-Age, Survivors and Disability Insurance (OASDI). If you are…
In my last two columns I described the kinds of active duty service in the armed forces that are potentially creditable in your CSRS or FERS annuity, and what you have to do to get that credit. This time I’ll quickly go over the rules governing the computation of CSRS and FERS annuities for most federal employees. That way you’ll be able to see what the difference would be between a pure civilian annuity and one that includes credit for active duty service for which you’ve made a deposit. Eligibility rules Under CSRS, you can retire immediately if you are…
Q. I retired at 52 under FERS as a law enforcement agent after 27 years of federal service. I immediately began my second career working outside federal government. My monthly annuity includes the FERS supplement. I reached my minimum retirement age of 56 last month, but the supplement is still included in my monthly annuity. I make more than the “needs tested” amount annually but am still receiving the FERS supplement. Should the FERS Supplement disappear the month following your MRA birth month? Is it removed by OPM automatically, or does OPM continue to pay the supplement? How exactly is…
(Click here to read Part One) To get credit for any period of military service, you need to deposit an amount that equals a percentage of your basic military basic pay, not including any allowances or differentials you may have received. The amount of the deposit depends on two things: whether you are covered by Civil Service Retirement System or Federal Employees Retirement System, and when the military service occurred. For CSRS employees, the deposit equals 7 percent of your basic pay for periods of service performed before January 1, 1999, 7.25 percent for periods of service during 1999, 7.4…
Question: I served five years active duty and am currently in the drilling reserves. I am also a civilian government employee. If I buy back my five years of active duty time, does that reset my reserve time? In other words, currently I need only 15 more (good) years to retire from the reserves. If I buy back my five years of active, will I need to complete 20 (good) years in the reserves? A: Making a deposit to get credit for your active duty service wouldn’t reset your reserve time, nor would it have any effect on your entitlement to reserve retired pay.
Q. I am a retired navy reservist and have been a civil servant since 2003. In 2003, I prepared a package of my active time and submitted it to the Navy and the Defense Finance and Accounting Service, following the proper procedures. I submitted a check for the full amount that was in the package. The package, approved by the Navy and DFAS, included several DD Forms 214 and many Active duty days (regular annual 2 week periods plus additional active duty time). Excluded were regular reserve weekend drills. I paid in full for the time calculated by the Navy and…
Q. I am currently a DoD employee with prior military service as well as time with USPS. My service computation date was adjusted to reflect my prior military time. Am I allowed credit for the time I was with USPS. If so, how is that time computed/reflected?