Q: I’m under the Federal Employees Retirement System and plan to retire at minimum retirement age (56) with less than 30 years of service. Is the 5 percent per year penalty based on each year short of 30 years, or is it based on each year short of age 62? I’ve seen it explained both ways. Also, is the actual penalty based on fractions (months) or whole years? A: If you retire under the MRA+10 provision (minimum retirement age with at least 10 years of service), your annuity will be reduced by 5 percent for every year (or 5/12 of…
Browsing: Creditable service: FERS
Q: I worked for the federal government from 1968 to 1986, then worked in the private sector from 1987 to 2005. I withdrew my retirement money when I left government service. If I return to federal service, should I opt to be placed in the Federal Employees Retirement System or Civil Service Retirement System? I assume it would make sense to re-deposit the money I withdrew and pay the interest? A: If you returned to work for the government you would be placed in CSRS Offset (CSRS and Social Security) with the option of transferring to FERS. Even if you…
Q: I have over 30 years of federal service — military plus civil service. From 1977 to 1990, I was under the Civil Service Retirement System. Then I took a 2 1/2-year break from federal employment. When I came back into civil service, I was put under the Federal Employees Retirement System. When I returned to civil service after the 2 1/2-year break, shouldn’t I have remained under CSRS instead of being placed under FERS? A: As a rule, when you returned to work for the government, you should have been placed in CSRS Offset (CSRS and Social Security), with…
Q: I am a Federal Employees Retirement System employee who will be retiring in June 2011 at the age of 66 years, 3 months. At that time, I will have 20 years of federal service. I have the option of taking Social Security benefits when I turn 66 in March or waiting until I actually retire in June. My inclination is to take the benefits when I turn 66 when there is no penalty, since I will be at full retirement age. Am I correct in this decision or am I missing something? A: You are correct. Once you have…
Q: I spent two years (2004-2006) working for the Veterans Affairs Department at a work-study position in Buffalo, N.Y. Does this time in any way count toward Federal Employees Retirement System retirement eligibility or annuity computation? A: No, it doesn’t count.
Q: I am an employee with U.S. Customs and Border Protection in a covered 6(c) law enforcement position. I have 19 6(c) law enforcement years for retirement purposes. I am also in the National Guard. If I enter the active-duty Army and take leave without pay for the next five years, which years would be included to make up my “high 3” for retirement purposes under the Federal Employees Retirement System? Is the high-3 calculation based on actual money earned (i.e., the three years prior to entering active duty with the military), or is it based on my paygrade and…
Q: My wife is a government employee who was reinstated from former government service (she resigned in 1993). She entered government service in 1980 and was under the old retirement service. She resigned to have a child in 1984 and withdrew her retirement. She was reinstated in 1986 and came under the new retirement system. She again resigned and was reinstated in 2009. She has more than 13 years of government service. Can she pay back the retirement she received plus contributions she would have made over the years to fall back into the old retirement system? A: She may…
Q: I’m a 45-year-old disabled retiree with 25 years of service. If I am getting $2,800 a month on Social Security disability and $1,695.00 on Federal Employees Retirement System disability after my first year, how much will I get when both are combined? I understand the Office of Personnel Management makes some calculations on this, but I can’t figure them out. Based on the information above, can you give me an estimate total of both after reduction. A: I’ll give you the formulas; then you can do the arithmetic. For the first 12 months on FERS disability retirement, a retiree…
Q: I began my civil service career in August 1972 and resigned in August 1980. When I left, I was covered under the Civil Service Retirement System. I returned to work in December 1984 and was a CSRS Offset employee. At that time, I could find no one who could explain to me what “Offset” meant. Then the push for employees to move to the Federal Employees Retirement System began, and since no one seemed able to explain to me what “Offset” meant, and I had to make a decision by a certain date, I made the uninformed decision to…
Q: Can a Federal Employees Retirement System retiree get another FERS position after retirement? Will one’s retirement pension time be recalculated? Are there other considerations? A: Yes. Unless you are hired into a position that allows you to receive both your full annuity and the full salary of your new position — for which you would get no additional retirement credit — your salary would be reduced by the amount of your annuity. If you worked for at least one year, you’d be eligible for a supplemental annuity. If you worked for five years or more, you’d be eligible for…