Q: I am a Federal Firefighter. I was hired in 1986 and will retire under the Federal Employees Retirement System. My question revolves around my active-duty military service deposit to the federal retirement fund. Since I have made this deposit and am in good standing to receive compensation for this time; my question is; can I apply it to help determine the length of my service in order to fulfill the 25-year requirement? As a federal firefighter, I am subject to the special retirement for law enforcement officers, firefighters and air traffic control personnel. I cannot get a consistent or…
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: I am 63 and under Federal Employees Retirement System as a 1998 FERS transfer. My wife is 65 and collecting Social Security as of age 62. When I turn 66, my full retirement age, am I allowed to collect a full spousal benefit of half of her monthly benefit without penalty? If this is possible, I could then delay taking my own benefit until age 70 and collect the maximum under my own earnings (less the Windfall Elimination Provision penalty) which is substantially more than my full benefit at age 66. A: Here are the rules. As a spouse,…
Q: I am a Civil Service Retirement System Offset employee who has about 28 years of civil-service time with the Navy. I have about $19,000 to pay back for retirement money I withdrew. I have already paid back my military portion. Under a deferred retirement, I would be allowed to continue paying back my civil retirement debt up to six months before my 62nd birthday, which is when I’m suppose to file for retirement with the Office of Personnel Management. My divorce decree states once I retire from the civil service, the alimony ceases. Since a deferred retirement is one…
Q: I was told that in October, regulations on the maximum age for law enforcement pay were changed to read that if you are over 37 years old with a DD 214, you may apply for law enforcement jobs (prison guard, fedearal marshal, etc.). Is this correct information? A: No, it isn’t. However, Section 1086 of Public Law 111-84 did increase the maximum age limit for an original law enforcement or firefighter appointment to 47 for anyone receiving retired or retainer pay for military service or premium or compensation from the Veterans Affairs Department instead of retired or retainer pay.…
Q: I am a Civil Service Retirement System employee who is now receiving a disability pension. What happens if I am able to go back to work but the Postal Service doesn’t have any openings and I can get a job in the private sector? I am 57 years old with 28 years with the postal service. Do I have to wait until I am 60 or 62 years of age to retire (deferred retirement)? Also, is there an earnings limit if I retire as a civil service retiree like there is under Social Security? A: If your disability annuity…
Q: Now that the Defense Authorization Bill has been passed stating that federal employees overseas will be paid “Locality Pay” as opposed to a Cost of Living Allowance, when will we begin to receive the locality pay? A: Under Public Law 111-84, in calendar year 2010, affected employees will receive one-third of the locality rate paid in the “rest of the U.S.” locality; in 2011, two-thirds of the otherwise applicable comparability payment for each nonforeign area; and in 2012 and after, the full amount of the otherwise applicable comparability payment. Since the 2010 locality rate has not yet been announced…
Q: Can you please explain the process for deferred retirement under the Federal Employees Retirement System? If I decide to retire from federal government service early (with 25 or more years of service, but not the age) and defer retirement benefits, is the annuity when received not reduced? Also, if I move to another government system (e.g, state or local government), could I continue to receive my federal annuity when eligible at 56 years of age? A: Any employee leaving government before being eligible to retire can apply for a deferred retirement at a later date. If the employee has…
Q: I started working for the Postal Service in January of 1995 as a PTF clerk. Now I am a full-time employee. Under the Federal Employees Retirement System, how do my part-time hours get counted for retirement time? Over 14 years, I have between 12,000 and 13,000 hours. A: Go to to Office of Personnel Management’s chapter on the computation for part-time employees and scroll down to Subchapter 55B, Part 55B2.
Q: Which states do not tax federal retirement benefits? A: States with no personal income taxes include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Those states that exempt the total amount of civil service annuities include Alabama, North Carolina (beginning in 1998 if the individual had five years of creditable government service as of Aug. 12, 1989), Michigan, Illinois, Pennsylvania, New York, Kentucky (only if retired before Jan. 1, 1998), Hawaii, Oregon (not taxed if retired before Oct. 1, 1991; if retired on that date or later, only taxed on the portion earned after that…
Q: Mr. Jones answered a question on Dec. 2 (“Annual leave and returning to federal service”) pertaining to lump-sum payment for annual leave for one returning to federal service. The answer was: “As required by law, you will have to return every penny you received for annual leave that hasn’t expired between the time you retired, and the time you return to work.” Two questions: Can you provide citations to statute and/or regulations that require this result? And what does “hasn’t expired” mean? The leave year typically ends in early January. If you retire in July and return to work…