Q. I am in CSRS Offset and, this month, I have 26 years of federal service. I will turn 62 in June and am thinking about retiring this year. Once I retire, I will be eligible for Social Security. If I choose to wait until, for example, I turn 66, my understanding is, when I retire and start collecting my CSRS (offset) pension, the Social Security I would be entitled to (at 62) will be deducted from my pension. Is the offset/reduction figure set by a formula, or is it dollar for dollar? If I choose to take Social Security…
Browsing: annuity reduction
Q. I’m 49, with 26 years in the NAF retirement program. I won’t be accepting a transfer of function outside my commuting area, so I’ll be involuntary separated. Based on everything I’ve read in AR215-3 3-25, I should be eligible for both discontinued service retirement and severance pay. Severance pay would be authorized in my case since my immediate annuity will be reduced 12 percent based on my age (2 percent for every year I’m away from 55). I’m now hearing that the following paragraph would prevent me from receiving severance pay: AR215-3 3-25 h. “Exclusions from severance pay. Severance…
Q. I am retiring under CSRS offset. In 2007, I worked as a temporary employee for four months. During that time I paid FICA, but not the additional 0.8 percent toward my retirement. OPM states that I need to pay the full 7 percent to get full credit toward my retirement. Given that the CSRS offset contribution is 7 percent, divided by 6.2 percent toward FICA and 0.8 percent toward CSRS, wouldn’t paying an additional 7 percent be a double payment toward FICA? Shouldn’t I just be liable for the 0.8 percent deposit? If I must pay a full 7…