Q. I have a rather complicated question concerning my FERS retirement. I took an early retirement under FERS at the end of 2009. I retired on Dec. 31, 2009 at the age of 59. Because of the pay periods in 2009, the last pay period of December actually ended on Jan. 2, 2010. This pay period therefore became pay period 1 for 2010. Therefore, my last pay check and annual leave show as earned income in 2010. My retirement date started on Jan.1, 2010. Since my last check and annual leave earnings show as earned in 2010, do they count…
Q. I have a curiosity question. If I retire at my minimum retirement age of 56 with 27 years of service, how does the 5 percent penalty reduction work? It is a little confusing as to how it is worded. Lets say that my annuity is $15,000; does that mean each year I would get $14,250 instead? Will it be 5 percent for each year until I reach age 62, then no penalty? And would I be eligible for the supplemental income? A. The 5 percent penalty for every year you are under age 62 is a one-time permanent reduction.…
Q. I was an employed physician working alongside comission corp officers at the Commonwealth of the Northern Marianas Islands Hospital in Saipan beginning in March 1989 through June 1991. I am now a federal employee with the Indian Health Service. Would my overseas time count as creditable service? A. It would only be creditable if retirement contributions were taken from your pay. If they weren’t, that time isn’t creditable for any retirement purpose.
Q. I need to know the percentage I contributed toward my pension as a retired law enforcement officer ( I retired in 2008), and what percentage the government contributed. A. When you retired, the amount of your own contributions was reported on the package sent to you by OPM. You could also find it on your final pay voucher. To find out what your agency contributed, you’ll have to get that from your former agency. The amount depends on your retirement system and, in the case of FERS, varied over time.
Q. I am a FERS retiree. I receive a special retirement supplement. Is this taxed? I have not gotten anything except my 1099R from the CSA. A. Although the special retirement supplement is designed to approximate the Social Security benefit you earned while employed under FERS, the money comes from the CSRS Retirement and Disability Fund. As such, it is taxed in the same way as the rest of your annuity. A portion of that total is nontaxable while the rest is taxable. To find out what the nontaxable portion will be, go to www.irs.gov/pubs/irs-pdf/p721.pdf and read the IRS’ Tax…
Q. I am a FERS employee with seven years of service. I was told at our retirement seminar that we could not draw more than two federal pensions. I will retire from the Air Force reserve in three years, and in another 10 years can retire from my GS position. We were told that if we elect to get the military retirement and the civil service retirement, we could not get Social Security. Is this correct? A. No. You will be able to receive your reserve retired pay, your FERS annuity, and a Social Security benefit based on all your…
Q. I’m still struggling with my military buyback time. I will be 58 in June; my service comp date is July 9. I’ll have 40 years of service, which includes my 3 years 11 months of military time and intend to retire by the end of December, which would give me another five months plus my sick leave. I have approximately 24 quarters paid into Social Security and to buy back my military time will cost me almost $5,000. I do plan on probably working part time but my question is, if I do not ever seek Social Security payments…
Q. I am currently a FERS employee in the GS system. This is my situation: I had 15 years of active-duty time, at which time I left the Navy and have continued in the Reserves. I started in the GS system, bought my military time back (about $18,000 for 15 years active duty) and in 2011 will have five years as a GS employee to total 20 (military + FERS years). My question is: Can I choose to take a deferred retirement in 2011 if I no longer want to stay with the federal government and pick up that pension…
Q. In regard to President Obama’s proposal related to health reform, will federal employees’ dependents parents who do not have health insurance, could they be added into the FEHB with an additional fee? Anything new related to extending FEHB for dependent children over 22 years old ? A. No and Yes.
Q. Is the federal government offering any buyouts for the employees under the old retirement system? A. No, it isn’t, and under current law, it can’t. It can only offer buyouts to those who meet the qualification requirements, regardless of their retirement system.