Q. If one retires under the MRA +10 provisions with a penalty, how does the Internal Revenue Service view this situation as far as determining your income? Are there any special tax consequences related to the penalty? Simplified example: John Smith retires at age 56 with 25 years of service and his pension before the penalty is $2,000 per month. He now takes a 30 percent reduction (5 percent for each year under 62) and receives $1,400 per month. How does the IRS treat the income and penalty?
Browsing: MRA + 10
Q. I was born in 1963 and am retired Air Force with 20 years and four months active duty (Dec. 9, 1981-April 1, 2002). I am also a civil service employee (April 8, 2002-present). How do I calculate if it’s worth it to buy back my 20 years and four months of military service? How can I compare what I will be getting — keeping the two retirements separate vs. waiving my military retirement check and adding that time to my civil service retirement? If I buy back the military time, does it then adjust my civil service start date…
Q. Reading some of the questions that are being answered, there is some confusion. Some say if you retire at your minimum retirement age, you will not be able to continue health care coverage, but you must wait to retire at 60 to be able to remain in program. Other answers have been you can have your health care coverage renewed when you reach 60 when you apply for your deferred annuity. Can you clear this up? If I retire at my MRA which is 56, will my health care coverage continue?
Q. My wife and I were both career federal employees. She left federal service a few years ago with FERS MRA+10. She postponed retirement until now to avoid the penalty. Just before leaving service, I changed my Federal Employees Health Benefits coverage from self only to self and family to cover her. She then terminated her coverage (had been covered more than five years continuously prior to that). When she starts retirement, she can enroll in FEHB self-only coverage. Can I also change my coverage to self-only at that time? Is her eligibility to continue FEHB coverage a qualifying life…
Q. I am a FERS employee. I am 57 with 26 years of service. 1. Do I get annuity computation for sick leave? If so, how is it computed? 2. I was born in 1956. What is my minimum retirement age, and how much service should I have under the MRA? 3. What happens with my annual and sick leave when I retire? 4. When should I start preparing my paperwork for my retirement? 5. My agency is going through a reorganization. We have the options for early retirement, buyout, being reassigned to New York or Boston (I live in…
Q. I have been told by the Office of Personnel Management that if I postpone my retirement until age 60, I would be penalized for every year I am under 62 and will not be eligible for the special retirement supplement. I am 59½ with more than 28 years in the Postal Service. Our facility is consolidating, and our jobs are at stake. I am a clerk and do not want a carrier position because of my health. I plan on retiring in February to reach my 60th birthday. If I don’t accept a carrier position, can I: 1. Take…
Q. When I reach age 56, I will have 20 years of federal employment. I realize I can retire at MRA + 10 with a reduced benefit of 30 percent. Can I defer or postpone my retirement to age 60, qualify under the 60/20 and not take a reduced benefit? Also, how does this affect my health benefits? Do I purchase my own health insurance and then re-enroll when I apply for my annuity?
Q. I have 12 years of full-time employment and am MRA +10. Instead of retiring outright, I was thinking of going to half-time for a year or two. I understand my share of health insurance premiums will go up dramatically while I am employed part-time, but what will happen when I finally retire? Will my share go back to the full-time amount, or will I continue to pay the extra half? This is a major part of my decision to stay on because my pension would barely cover the increased amount.
Q. I was born in 1958 and would like to retire from the federal government with 10 years of service at age 57. Would I be eligible for the special retirement supplement?
Q. I am a 51-year-old Defense Department employee with 13 years of continuous service under FERS and considering leaving federal service and working in the private sector. Since my minimum retirement age is 56, I am ineligible for the MRA+10 retirement option at this time. If I return to federal service at age 56 or later, is there a minimum duration that I would be required to work before I can retire under MRA+10? I have been continuously enrolled in Federal Employees Health Benefits for the past 13 years and would re-enroll immediately upon returning to federal service. I would…