Q: I am thinking of retiring in October 2010 with 39 years, one month and 16 days of service. I will be age 58 years, three months at date of retirement. My supervisor would like to hire me back as a contractor for three days a week. Will this affect my net monthly annuity? A: While being hired as a contractor shouldn’t have any effect on your annuity, you’ll need to check with your agency’s personnel office to find out if it would be acceptable under your agency’s employment guidelines.
Author Reg Jones
Reg Jones
Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.
Q: If I retire at the end of fiscal year 2010 — on Sept. 30 — can I delay cashing out my annual leave balance until 2011, when I would be in a lower income tax bracket? A: No, you can’t. Lump-sum payments are automatic and are made when your finance office completes the close-out of your employment records. As a rule, the payment is made at the same time your final paycheck is issued.
Q: I will have 10 years of service in the billing department of a VA medical center in May. I would like to retire when I turn 63 in January 2012. How do I go about setting up the retirement time and process? What do I need to do to set this up at that time? A: Because you will be at least 62 years old, you can retire with as few as five years of service.
Q: I am a federal law enforcement officer under the Federal Employees Retirement System. I have 23 years of service and can retire at age 50 just prior to completing 25 years. My human resources department did my calculations for me (I have tried to estimate my own for the last few years) and I have a question about one item. They computed the average of my high-3, gave me the numerical figure and took out money for health and life insurance. Then they added $400 for a FERS annuity. Now here’s the problem: A co-worker claims that is our…
Q: I am under the Federal Employees Retirement System and currently have 8-plus years of federal service in a covered position (1811, with an age waiver). I am 52 years old. I would be 63 when I retire under the special provisions for law enforcement employees. I retired from military with 20 years of service and plan to “buy back” my military time for FERS retirement purposes. After I buy back my military time, and if I decide to retire with only 15 years of federal service (approximately eight years from now; I will be 60 at the time and…
Q: I have prior military service. Now I am a federal employee. Can unused military sick leave be used as service credit in the computation of benefits under the Federal Employees Retirement System when I retire? A: No. You can’t use it in your annuity computation or for any other purpose as a civilian employee of the federal government.
Q: If a Civil Service Retirement System retiree is currently receiving government health insurance and gets married, can he add his spouse to his health insurance? A: Anyone covered by the Federal Employees Health Benefits program who has a change in family status, such as marriage, birth or death of a family member, adoption, legal separation or divorce, can change from self only to self and family or vice versa. For employees, the code is 1C in the Table of Permissible Changes; for retirees, it is code 2B.
Q: I’ve been a Federal Employees Retirement System employee of the Veterans Affairs Department since 1986. Human Resources changed my retirement code from 2 to C — but I have not requested any changes. It is almost impossible to see the retirement representative from HR, yet I’m trying to make an appointment with HR to get an explanation. Can you explain? A: I can tell you what but not why. Retirement code 2 is FICA. It means that “you are covered by the Federal Insurance Contributions Act – Social Security only. You are not covered by a retirement system for…
Q: I served in the military from 1978 to 1989 and was medically retired, receiving military pay. I started working for the federal government in 1992 and am set to retire in 2012 under the Federal Employees Retirement System. I didn’t pay back my military time. Is it true that I will be able to retire in 2012, and what benefit would I have if I paid back my military time? A: With 20 years of FERS service, you would only be able to retire on an immediate, unreduced annuity if you were age 60 or older. If you had…
Q: Does a break of 55 days of federal service constitute losing 27 years of Federal Employees Health Benefits plan coverage before retiring? In other words, someone resigns from federal service. Then, he is hired 55 days later in a TERM position, achiveing permanent status seven months later. The TERM position allowed for full benefits, such as sick leave, annual leave, and FEHB election and coverage on the first day of hire. A: If you were enrolled in an FEHB plan on the day you left government and on returning to work for the government re-enrolled at your earliest opportunity,…