Q: I am 54 with 28 years in the U.S. Postal Service with CSRS. What would my penalties be if I choose to retire this year? A: You aren’t eligible to retire, so the question is moot. Unless your agency offers you an opportunity to retire early, the earliest you can retire is age 55 with 30 years of service. If they did offer you that opportunity, your annuity would be reduced by 1/6 percent for every month you were under age 55.
Q: I will have 24 years of service at age 56 and I am considering retiring then under the MRA+10 provision and postponing the receipt of my annuity until age 60 to avoid the age penalty. What process do I need to undertake in order to get by FEHB back at age 60? A: When you retire, you’ll be told how to activate your annuity payments on the date you choose. If you were enrolled in the FEHB program for the five consecutive years before you retire, you’ll also be told how to re-enroll when your annuity begins.
Q: My husband retired with a government pension based on work for which he did not pay Social Security taxes. If he should die before me, I will receive a monthly spousal annuity payment equal to 70 percent of his benefit. He was also eligible for Social Security benefits, and the amount was reduced because of his government pension. I have not worked long enough to receive a pension or Social Security benefits on my own record. Will I be entitled to Social Security benefits on my husband’s record? And how will those benefits be affected by the spousal annuity?…
Q: I am a 10-point, Purple Heart disabled veteran and have worked for the U.S. Postal Service for more than 35 years. I am assigned to a management position that likely will be affected by a Reduction in Force. As I have experienced in the past, positions are either eliminated or reposted as a new position (or vacancy) after a reorganization. Do 10-point veterans have any preferential rights upon reorganization? A: Yes, if the reorganization results in a reduction-in-force to accomplish the needed changes. However, if no reductions in grade or pay are involved, only the shifting of organizational boxes…
Q: I recently retired from the Coast Guard as a Reserve warrant officer with 30 years of service (13 years active duty and 17 years as a reservist). Upon taking my GS position with the Coast Guard, I bought my 13 years of active duty in a lump sum. During my new-hire orientation, I was told that my bi-weekly leave accumulation would rise from four hours per pay period to six hours per pay period. To date, after two years, one month of GS service, I am still receiving four hours per pay period. Am I correct that I should…
Q: I recently requested the retirement package be sent to me and have a phone session scheduled for next week with a projected retirement date of June 3 (I am U.S. Postal Service letter carrier with 32 years of service). I am concerned that an incentive may be offered to get voluntary retirement due to budget problems. How would this affect someone who is in the process of retiring? Should I wait to send in the application until much closer to my retirement date to see if an incentive is offered? Or would I not be eligible for the incentive…
Q: On Oct. 31, 2007, I reached mandatory retirement age of 57 and retired as a FERS law enforcement officer with more than 33 years experience. I have a blended retirement of both CSRS and FERS. For whatever reason, I did not receive my lump sum vacation pay of $25,742 until early January 2008. Just recently, I received notice from OPM that because I exceeded the Social Security earnings limit of $13,560 for 2008, I was overpaid in the supplemental security portion of my pension. I did not have any other earned income for 2008. Since I could not have…
Q: I was a U.S. Postal Service employee from February 1975 until February 1983. I will turn 65 this May. I am not eligible for government retirement, since those eight years were my only government employment, nor am I eligible for Social Security benefits. Is there some way that the post office can credit my employment with them for Social Security benefits? A: No. Only employment where Social Security taxes are taken from your income can earn Social Security credits. Note: If you had retirement deductions taken from your salary and didn’t ask for a refund when you left, you…
Q: I am contemplating retiring Dec. 31. At that time, I will be 63 with 24 years of FERS service. I am a GS14 step 7 with a step increase to GS 14 step 8 due in June. My high-3 average will be in the area of $125,500 with an estimated TSP balance of $250,000 at the time of retirement. I also will have approximately 200 hours of accrued sick leave and 240 hours of annual leave accrued. Considering the current two-year pay freeze (with the possibility of a five-year freeze), and the possibility of changing from the high-3 average…
Q: My latest Social Security estimate pamphlet says the maximum monthly reduction for WEP in 2010 is $381. Does that mean I would take whatever amount they estimate my monthly amount will be and can count on having no more than $381 deducted from that amount for the WEP penalty? A: The windfall elimination provision reduces but does not eliminate the Social Security benefit of anyone who receives an annuity from a retirement system where he didn’t pay Social Security taxes, such as CSRS, and has fewer than 30 years of substantial earnings under Social Security. To find out how…