Q: I am an air traffic controller (ATC) with the Defense Department. I’m 53 years old and have met eligibility for the optional retirement. I have been deemed permanently medically disqualified to perform ATC duties due to prescribed medication for a stress-related disorder. A lot of what I’m reading tells me I am facing involuntary separation, which qualifies me for discontinued service retirement if my local human resources agency cannot find a alternate position due to my limited qualifications and my grade (I’m a GS-12 with less than a bachelor’s degree and I’m only experienced in ATC, live-fire range operations…
Browsing: RETIREMENT
Q: I am trying to figure out how Federal Employees Retirement System contributions deducted from my pay work. Are they included in retirement pay? I know about the high-3, the 1 percent or the 1.1 percent, and the total years of service and months used for computing retirement annuity. I just don’t understand the FERS subtraction and how it fits, or if it does, into the retirement annuity equation process. A: The retirement contributions that are deducted from your pay have no direct bearing on what you will receive in your annuity. It will be based on a formula that…
Q: What interest rate is applied to excess retirement contributions under the Civil Service Retirement System when the principal is refunded in July 2010? A: Interest rates for excess contributions are applied annually. For excess contributions made during 2010, the interest rate is 3.125 percent.
Q: Are the Federal Employees Retirement System and special retirement supplement annuities subject to federal income tax? If they are, and your FERS annuity is greater than $15,000, will the special retirement supplement be reduced? A: The special retirement supplement is subject to federal (and, where applicable, state) taxes. However, your special retirement supplement would only be reduced if you had earnings from wages or self-employment. The Social Security earnings test doesn’t count other sources of income, such as annuities.
Q: In previous responses, you indicated that when a lump-sum base closure and realignment payment is made, federal and state income taxes, as well as Medicare deductions, will come out of the payment. You also indicated Social Security deductions can be taken out. As a Civil Service Retirement System employee, I do not pay into Social Security. Does that mean that no CSRS retirement payments will be taken out? Also, the lump sum will be close to $80,000 and should be paid in my last paycheck; are there any limitations on payouts? A: Social Security deductions would only be made…
Q: I served in the Air Force from 1971 to 1977. In 1977, I joined the Air National Guard. I retired from the ANG in 1991 with 20 years of service, including the six active-duty years. In 1977, I also got a job with the federal government as a civilian employee under the Civil Service Retirement System. In 1986, I payed back my six years of active-duty military time to receive credit for them under CSRS. I am planning to retire in 2011 from the federal government with 40 years of creditable service in CSRS, including the six years bought…
Q: I received a federal disability pension in 1991. I retrained and was able to work until 2004, when the same condition worsened. I applied for Social Security disability benefits and received them beginning in 2008. I just received a notice that the federal civil service disability pension is considered a windfall. A calculation will be made with the windfall rule to reduce my Social Security disability. Is this discrimination against the disabled? Is there a way I can fight or protest this situation? A: Apparently you are subject to the windfall elimination provision, which applies to the Social Security…
Q: I just read an article about the 2010 Defense Authorization Act, and it speaks of allowing employees under the Federal Employees Retirement System to redeposit. I took a refund of $1,600 and lost 13 years of military time for retirement under the FERS system because redeposit was not allowed. I understand this new law authorizes FERS employees to redeposit for civil service time. Does it allow for redeposit for military time? A: No, it doesn’t.
Q: I was a federal employee for the better part of 1991-1997, during which time I made a deposit for a percentage of my base pay received during active-duty Army service that totaled $8,098.17. I then separated from civilian service and returned to active duty, where I remained until retirement in 2007. I am now a civilian employee again. I no longer intend to use my years of military service toward a civilian retirement. Is there any way I can have that deposit refunded, either now or when I retire as a civilian employee? A: You could only receive a…
Q: I will be retiring in January with 31 years of federal service. I also have more than 40 quarters to qualify for Social Security. My wife will be applying for Social Security benefits when she turns 62 this January. When we retire, will she be able to collect her full Social Security benefit, and will I be able to collect my share of Social Security under the windfall elimination provision? A: She will be able to collect her full earned Social Security benefit. When you apply for a Social Security benefit, it will, as you pointed out, be subject…