My readers seem to be confused about two types of annuities: postponed and deferred. I think the misunderstanding arises because they are using the terms interchangeably. Let me explain the difference, which is a big one. Postponed annuity A postponed annuity is one where you retire after meeting the age and service requirements and postpone the receipt of your annuity until a later date. This option is only available to employees under the Federal Employees Retirement System who have reached their minimum retirement age (MRA) and have at least 10 years of creditable service. If you retire under the MRA+10…
Q: I plan to retire at 60 years old with FERS. If I take the lump sum, will my health insurance still be valid and will the agency still pay its portion? Please give all scenarios (even the bad ones). A: I assume by “lump sum,” you mean accepting a Voluntary Separation Incentives Payment. If I’m right about that, you are eligible to retire, and you have been continuously enrolled in the Federal Employees Health Benefits program for the five years before you retire, you will be able to continue that coverage in retirement. If you are an employee of…
Q: I am a federal law enforcement officer covered by FERS with more than 20 years of service under FERS, but I have not reached the minimum retirement age of 50. Due to plans to transfer me, I must either separate myself from my family, find another job or retire early. My question concerns the viability of the early retirement option. If I retire at 47 with more than 20 years as a federal LEO, what happens? Do my benefits get deferred and, if so, to when? Is there also a financial penalty and, if so, how much? A: You…
Q: My husband was forced to retire from the Defense Department due to base closures in 1999. He was 45, and combined with his navy and shipyard time he had 25 years in. He took the retirement and has worked in the private sector since. He has an opportunity to work at the Veterans Hospital and was wondering what it would do to his retirement. He gets about $20,000 a year in retirement and the job pays $25 per hour. Any help is welcome. A: It depends entirely on the nature of his appointment. If he takes a government job,…
Q: My wife only worked for 11 years and based on the annual statements she receives from the Social Security Administration, she can only expect to receive about $300 a month at age 62. She is 5 years older than me and I plan on retiring under FERS at age 60 and drawing my Social Security at 62. Recently someone mentioned if her full amount was less than half mine she would get half of mine. This sounds like a better deal, but trying to get the facts on this from the SSA Web site without a background in cryptography…
Q: As a federal firefighter retiring under FRES at the mandatory age of 57, can I continue working in another agency? For instant, transferring into fire prevention, which does not apply to the mandatory retirement or to another federal agency outside of the federal fire service. If so, would I still receive the firefighter retirement computation? A: Once you have 20 years of covered service, you have locked in your eligibility to retire under the more generous computation formula for firefighters. You can continue working where you are in any job or work for another federal agency without affecting that…
Q: My wife died last year. She was a retired educator with more than 30 years of service. She turned 60 in December 2009. She also had been receiving Social Security disability for almost two years before she died. I will be turning 61 in 2010; however I am still working with more than 30 years of federal service under CSRS. I am an outset employee because I left the federal government for two years and have been back since Jan. 6, 2009. Can I received her Social Security at age 62 and delay drawing mine until I am 65?…
Q: I took the VER that was offered for postal clerks on Oct. 31, 2009. I have received three very small interim annuity checks since then. Processing is taking forever. I assume it will all come out in the wash. I am 60 with 25+ years in FERS. Will I receive the SRS? Do I have to make a special request either to OPM or to Social Security for that? Can I use the 26/40x the figure on my SSA statement to figure the amount? The statement I have is dated July 2009. In addition, I’ve had a part-time job…
Q: Does time worked at the Federal Reserve count toward time worked for the Small Business Administration? A: It only counts if you waive any right to benefits from the Federal Reserve retirement system for that prior service and make a deposit into the Civil Service Retirement and Disability Fund. Your current agency can help you work out the details and may be able to arrange the transfer of the contributions you made to the Federal Reserve retirement system into your current retirement system.
Q: I am retiring soon under the Federal Employees Retirement System and my spouse is already retired under the Civil Service Retirement System. Should I die before her, will she be able to collect unreduced Social Security survivor’s benefits? A: No, she won’t. Her survivor benefit will be subject to the government pension offset provision of the law, which will reduce that benefit by $2 for every $3 she receives in her CSRS annuity.