Q: I was hired after 1983 to a nonmilitary position. I left federal employment with a 40 percent Federal Employees Retirement System disability annuity. I was recently approved for Social Security disability. It is my understanding that per Federal Law 5 U.S.C. 8452(a)(2) that my monthly FERS disability check will be reduced by 60 percent of my Social Security disability benefit. That doesn’t seem fair. Isn’t there a bill pending in Congress that repeals this? Do you know which bill I should refer to when I contact my Congressman? A: That’s the law and, to the best of my knowledge, no…
Browsing: SOCIAL SECURITY
Q: I am a Civil Service Retirement System Offset annuitant hired in 1968. In 1985, our branch of government was taken over by the private sector. The private sector bought all of my federal service. In 2002, there was a reduction In force. I was eligible for an early retirement at age 51 and therefore receive two retirement checks: One for federal service and the other for my time purchased by the private sector. As a CSRS Offset employee, at age 62 I am subject to the Offset Social Security calculations but also have the same time purchased by the…
Q: I will be retiring from federal service at age 58 with 35 years of service under the Civil Service Retirement System. I have been paying the 1.45 percent Medicare biweekly payment since its inception in 1983. Will this tax be deducted from my monthly CSRS annuity until I reach age 65? And, without 40 quarters of paying into Social Security, does paying the Medicare tax for 17 years qualify me for free Medicare Part A? A: Deductions for Medicare Part A are only required for those who have earnings from wages or self-employment, not annuities. The fact that you…
Q: I am a federal employee who will soon be going in for open-heart surgery. I am 58 years old and will be 59 in March. I have until I’m 60 to reach 20 years of service for early retirement. I am also a retired E-6. What would happen if the doctor after the operation says I can no longer work? Would I be given 100 percent disability of my base pay? A: As an employee under the Federal Employees Retirement System, if you were approved by the Office of Personnel Management for disability retirement, during the first 12 months…
Q: I retired from the Army in 2007 and receive both military retirement pay and Veterans Affairs Department disability pay. I immediately went to work for the federal government under the Federal Employees Retirement System. When I retire from government employment, will I be paid all of the following: military retirement pay, VA disability pay, FERS retirement pay and Social Security benefits? A: Yes, you would be able to receive all four benefits. Just remember that your FERS retirement annuity would be based solely on your years of civilian service unless you chose to make a deposit for your years…
Q: I retired at age 55 with 34-plus years of service. I quit after 13 years of civil service and returned to civil service after 3 1/2 years of private employment. I just turned 61. I paid Social Security for over 20 years. If I elect to request Social Security benefits at age 62, how will this affect my civil service pension? A: Because you are now covered by CSRS Offset, at age 62 your annuity will be offset by the amount of Social Security benefits you earned while covered by CSRS Offset. The net effect will be that you’ll…
Q: I know that I can draw my Federal Employees Retirement System annuity and my Social Security benefits. My question is, will my Social Security benefits be reduced if my annuity is more than the yearly limit of $1,480? A: The Social Security earnings limit only applies to earnings from wages or self-employment, not what you receive in your annuity. In 2010 and 2011, the earnings limit is $14,160.
Q: I am a federal employee covered under the Federal Employees Retirement System. I am also paying Social Security taxes. Would I receive 100 percent of my retirement from both systems given that I retired at the stipulated age? Will my Social Security pension change my FERS pension? A: If you retire on an immediate annuity after reaching the right combination of age and service (62 years old with five years of service, 60 with 20, or at your minimum retirement age with 30), you’ll receive an unreduced FERS annuity and, if you retire before age 62, the special retirement…
Q: I’m 56 years old, which is my minimum retirement age, with 12 years of credible service. If I applied for disability retirement, would I receive benefits based on my years of service or the “60 percent first year, 40 percent thereafter” rule? If I would only receive the “high-3” times years of service calculation, what would be the advantage, if any, of disability retirement? A: Because you aren’t eligible for an immediate unreduced annuity, your benefit would be calculated under disability rules. You’d receive 60 percent of your high-3 minus 100 percent of any Social Security disability benefit to…
Q: I am a federal employee and I am also receiving Social Security benefits. I understand that when I retire and start receiving my civil service annuity, my monthly Social Security benefits will be recalculated because of the windfall elimination provision. At the time I started receiving Social Security, my number of years of substantial earnings for WEP purposes was 23. Because I am a Federal Employees Retirement System transferee, my current salary is subject to FICA. Will the years subsequent to the initial receipt of Social Security will be added to my 23 years? In other words, if I…