Browsing: PAY

Block 19

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Q. The definitions on the web for block 19 “cumulative retirement” only defines it, which to me has absolutely no meaning since it does not also state what happens to that amount once you do retire. Is that an initial retirement “seed money” or what? What happens to it? A. That’s a record of your contributions to the retirement fund. It only becomes important if you 1) resign from the government and ask for a refund of your contributions or 2) retire. In the latter case, it will be included in a formula used to determine how much of your…

CSRS retirement

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Q. I realize the answer to my question depends on the tax rate of the individual, but assuming their income is exclusively from their pension, how many years would a CSRS retiree need to work (excluding the effect of sick leave) in order to bring home approximately the same pay after retirement? In other words, what deductions will cease at retirement? Medicare? CSRS payments? The other variable is how much they are having deducted for the TSP every year. If it’s 10 percent, and that ceases at retirement, then I can see a person taking home 100 percent at about…

Locality pay

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Q. Is your retirement based off of the General Schedule Base or the Base with locality pay? A. Your annuity will be based on your basic rate of pay, which includes locality pay.

Years to be vested

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Q. I’m in the FERS program. Do you know how many years of service are required in order to be vested? If I leave government service after almost eight years, will I be vested in my TSP and annuity? Will I receive a pension? A. You’ll be vested in the retirement system when you have five years of full-time service. If you leave your contributions in the retirement fund and leave government, you’ll be entitled to a deferred annuity at age 62.

Vested employee

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Q. Once I get vested after five years of being in the federal system, and perhaps I leave the job a month later. Where can I find, or how can I calculate, how much I’ll get when I retire? A. If you leave you contributions in the retirement system, you’d be entitled to a deferred annuity at age 62. That annuity would be computed using this formula: .01 x your high-3 x your years and full months of service.

Excess contributions

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Q. I began my civilian federal employment in May of 1974. I am a Vietnam era veteran with three years military time and paid back that time. My service comp date for retirement is May 1971. I am going to retire at the end of this year. Based on the above, will all CSRS contributions I paid after reaching 41 years, 11 months, qualify for refunding to me? A. If you have 41 years and 11 months of service from which retirement deductions were taken (or a deposit made), any excess deductions will be refunded to you with an option…

Maximum earnings

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Q. You recently answered a question regarding the maximum earning amount for 2014 is $15,480 before the Social Security benefit would be reduced. Does the SSA consider military retirement, VA disability pay, along with TSP disbursements as “earnings”? A. Those aren’t earnings. Earnings are income received from wages or self employment.

Federal vesting

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Q. I keep hearing that it takes five years to get vested in the federal government. However, no one seems to know what happens after five years of employment, and I keep hearing different stories.  Do you happen to know what happens at the five-year mark? A. I can’t imagine what stories you’ve been hearing. When an employee has worked for the federal government for five years full-time (or its part-time equivalent), he has secured an entitlement to an annuity when he meets the age and service requirements to retire. If he leaves before having five years of service, he’s…

Annuity calculation

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Q. I worked 22 years for the federal government, and five of those years were as a CBP officer with 6C coverage. I retired at age 62. My high-3 salary used to calculate my annuity was $88,115, which means that 17 years should be calculated using 1.1 percent and the other five using 1.7 percent. I have been calculating my numbers but they don’t match up with the $1,892 annuity I receive monthly. I wrote a letter to OPM asking for the formula they used, but I have not received an answer. According to my numbers, I should receive about…

Location and high-3

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Q. I am a Defense Department employee in Washington D.C. If I change my locality three months before I retire Jan. 1, when I retire would the lesser locality pay kick into my base and be used as the high-3? A. How may times do I have to say this? Your high-3 is your highest three consecutive years (78 pay periods) of average basic pay, regardless of when they occur in your career.

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