Q. I am 59 years old and will have 23 years of service under FERS with the federal government in January. If I decide to retire via Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay, will I take a penalty in my retirement pay? If so, at what percent would that be? Also, would I still receive the supplemental benefit if I leave? In filling out the form for VERA/VSIP, would I select the VSIP or VERA? Would I be eligible for the VSIP? A. If you were to accept an offer of early retirement, you wouldn’t be subject to the…
Browsing: VSIP
Q. I am a federal law enforcement officer with more than 30 years of CSRS service. I do not have 20 years of federal law enforcement coverage, a main reason I remain on duty. Would I be eligible for VERA or VSIP, and by participating, would I receive the 18 months I need to attain 20 years in a covered position? Twenty years of law enforcement coverage computes to 50 percent of my high-3 plus the remaining years. I need 18 months of additional law enforcement time on duty to be eligible for a law enforcement retirement calculation. Does VERA…
Q. I am 55 with 24 years, and I am in the CSRS/Offset system. I took a VSIP in 1994 but was told at the time it would not affect the calculation of my retirement when I was ready to retire. 1) How would I find out if the 1994 VSIP does affect my annuity? I received a lump sum of $14,000, and it included my retirement and annual leave. 2) Do I have to redeposit those retirement funds to receive full annuity? If I retire at 56 with 25 years, how will my retirement be penalized? 4) What is…
Q. I’m a CSRS employee with 34 years of service, but I am only 54. Thus I am not eligible for optional retirement. My agency has been talking about a possible VERA/VSIP, which would probably require leaving by the end of December at the latest. I would still be about six months too young for a normal optional retirement. I am fully aware of the 2 percent per year penalty for taking a VERA at 55. Is that penalty always rounded up to the full year, or at just six months early, would it be pro-rated to 1 percent? While…
Q. My agency is contemplating a buyout but wants everyone off the books by Dec. 31. I would think it would be beneficial to retire on a date that would roll any buyout payment and any annual leave lump sum into the following tax year, when income would be lower. Am I correct that retiring on Dec. 29 would place me on the annuity role in January, and my Voluntary Separation Incentive Payment buyout and annual leave lump sum would be 2013 income? A. Yes.
Q. I have eight years of federal service as a FERS employee and believe I qualify for a deferred annuity at age 62. Would I be eligible for a VSIP (if offered), and if I were to accept a VSIP to leave; would this affect my annuity beginning at age 62; and if so, how? A. Yes, you’d be eligible for a VSIP. And you’d be eligible for a deferred annuity at age 62. The annuity would be calculated using the standard formula: 0.01 x your high-3 on the day you left x your years and full months of service…
Q. I’m a 52-year-old mail handler with 28 years of service. I still owe on my mortgage. I have enough equity to buy something smaller and pay most of it in full. Would I be eligible to retire now to take advantage of the $15,000 early-out being offered? A. Because you meet the age and service requirements for early voluntary retirement, you could do so if you were offered a Voluntary Separation Incentive Payment.
Q. I noticed someone said if you are eligible for disability retirement, you can’t get a Voluntary Separation Incentive Payment. There are many requirements to be eligible for or awarded disability retirement. It is a complicated application process. If you applied and/or if you have a disability, why should this mean you are automatically eligible for it and therefore not eligible for VSIP? A. The rules are clear. If you have a disability such that you are or would be eligible for disability retirement, you are barred from receiving a Voluntary Separation Incentive Payment.
Q. I am a FERS employee. Under VERA/VSIP, does my sick leave contribute toward my length of service computation? A. No. It is added only after you meet the age and service requirements to retire; and, if you retire before Jan. 1, 2014, only half credit is given for it.
Q. I retired from the Department of Justice in 2007. I received a $25,000 VSIP. I returned to work before the five-year waiting period and repaid the entire $25,000. I am employed by a different agency and am now thinking about going out after only two years. Am I eligible for a new VSIP? A. Absolutely not. By law, payment of a VSIP is a one-time, non-repeatable event.