Q: In previous responses, you indicated that when a lump-sum payment is made, federal and state income taxes and Medicare will come out of the payment. You also indicate Social Security can be taken out. As a Civil Service Retirement System employee, I do not pay into Social Security, so 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 for those who are covered by Social…
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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 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…
Q: I will be retiring in May 2011 at age 55 with 34 years of service in the Civil Service Retirement System. Four years of that time is added on from my military time, for which I did not make a deposit. If I work enough, will I be able to collect Social Security at age 65, not at 62? I only have 23 Social Security credits right now. A: If you retire before age 62 and won’t eligible for a Social Security benefit at that age, your CSRS annuity won’t be affected. However, if you become eligible for a…
Q: My husband recently began receiving Social Security in addition to his military retirement. I will be retiring under the Federal Employees Retirement System within the next couple of years and want to know whether there is a limit to what a “family” can receive in Social Security, or will both of us be allowed our benefits without regard to what the other is receiving? If my husband passes away, will I receive a portion of his Social Security in addition to my own? A: Both of you will be able to receive the Social Security benefit you earned based…
Q: I understand that because I am a Civil Service Retirement System retiree, if my spouse should die I cannot get any of his Social Security. At one time I heard there was a law Congress was trying to pass to reverse this. Can you please explain this to me and let me know if there is anything being done about this law? A: Because you will be receiving an annuity from a retirement system in which you didn’t pay Social Security taxes, you will be subject to the government pension offset provision of law. The GPO will reduce any…
Q: I am 65 years old and have applied for and expect to receive Federal Employees Retirement System disability retirement benefits. In October, I will turn 66 and will begin receiving Social Security retirement benefits. Will my FERS disability benefits be reduced by my SS retirement benefits? A: Because you are already age 62 or older, if you are approved for disability retirement and have fewer that 20 years of service, you’ll receive your earned annuity based on the standard FERS formula: 0.01 x your high-3 x your years and full months of service. If you have 20 or more…
Q: I was employed in temporary positions with the federal government from 1971 through 1986. During that period, I accumulated 10 full-time years of federal service during which I paid in only to Social Security because temporary federal employees were not allowed to partcipate in the Civil Service Retirement System. My first permanent federal appointment was in December 1986, at which time I enrolled in the Federal Employees Retirement System. My understanding is that for the approximately six years I worked prior to 1982, I will receive 90 percent of the CSRS annuity calculation without making a re-deposit. However, I…