Q: I am retiring Jan. 2, 2010, and hope to return as a retired annuitant with dual comp waived. My human resources group tells me if I return that I will have to repay my annual leave lump sum unless I don’t return until after the period of time my leave hours would have been used up. Can this be right? Why does the government care about the annual leave payment? It’s like starting any second job — I should have no annual leave but should not need to return the payment. A: As required by law, you will have…
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: Let’s say I have six months of sick leave credit. Can I retire at age 61 1/2, and qualify for the multiplier of 1.1 that we get at age 62? A: No, you can’t. Sick leave may only be added after you have met the age and service requirements for a retirement benefit.
Q: Do I have to pay taxes on my disability annuity if I am totally disabled and unable to perform any work at any job? Is this information shown on my 1009-D/R? A: There isn’t any federal tax exemption unless you are totally disabled for all gainful employment. Since that is not a determination that can be made by the Office of Personnel Management, you’ll need to check with the IRS to learn if you qualify. Check with your local IRS office or go to http://www.irs.gov.
Q: I was hired on Oct. 18, 1982, with the Postal Service as a temporary employee. In April 1984, I became a career employee, but later “bought back” my temporary time, so all my Form 50s show a hiring date of Oct. 18, 1982. I have always paid Social Security on my earnings. I have never understood why I did not fall under the Civil Service Retirement System instead of the Federal Employees Retirement System. I tried to research it with human resources, and they said I missed CSRS by 17 days (something about the five-year rule). I have not…
Q: I bought back four years of military service last month. If I can take this off my taxes for 2009, will it show on my W-2 forms and leave and earnings statement? A: No, you can’t take it off your taxes and it won’t show up on either your W-2 or your leave and earnings statement.
Q: I am a Postal Service employee with 25 years of service. My question is, does a civilian federal employee receive full health benefits upon retirement or do they have to purchase a plan? How about retired postal employees? A: If you were enrolled in the Federal Employees Health Benefits program for the full five years before you retire, you can carry that coverage into retirement. If you weren’t, you can’t carry that coverage into retirement, nor may you enroll in the FEHB program after you retire. Note: Because you are a Postal Service employee, your premiums would be higher…
Q: If I elect to take Medicare Part B at age 65 and I also elect to defer drawing Social Security until age 70, how will I be able to make the Medicare payments for the five-year gap since an allotment from my Social Security check will not be an option? A: If you are retired, you can have the Part B premiums deducted from your annuity. If you are still employed, you can have them deducted from your salary. Note: If you are still employed and covered by the Federal Employees Health Benefits program, you have the option of…
Well, FERS employees, the long wait is over. Thanks to Public Law 111-84, you are entitled to get credit for your unused sick leave in your annuity calculation when you retire. Previously, this benefit was available only to employees under the Civil Service Retirement System, not those under the Federal Employees Retirement System. There’s one hitch:You’ll get credit for only half of your unused sick leave until 2014. Still, half a loaf is better than none. How will that benefit affect your annuity when you retire? I’ll give a few examples to illustrate that. But first I’ll explain how sick…
Q: Has the retired annuitant act — which proposes allowing federal employees to retire and work part-time as a retired federal employee without an offset of your pension — been passed into law? Where can I find more information on this subject? A: That provision was included in Public Law 111-84, which was signed by the president at the end of October.
Q: I am a federal employee covered under the Civil Service Retirement System and will be retiring on Jan. 3, 2011, with 42 years, 1 month of service and 2,700 hours of sick leave. I need knee surgery, which will require that I be off work for three months. Should I have the surgery before I retire and use my sick leave, or postpone the surgery until I retire and apply all the sick leave toward my annuity? A: You are asking for advice, which I don’t give. The decision is up to you. However, assuming that you are going…