Q. I’m a CSRS/FERS hybrid federal retiree receiving Social Security and working part time. My earnings come close to but do not exceed the $14,000 limit. My employer withholds Social Security taxes from my earnings. Will my Social Security benefits ever increase because of my earnings? What if I earn in excess of the applicable yearly amount? A. If you are under full Social Security retirement age, your Social Security benefit would be reduced by $1 for every $2 you earn through wages or self-employment. In 2012, that limit is $14,640. In the year you reach full retirement age, your…
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Q. I am retired from the Postal Service. I am turning 66. If I pick up Medicare Part B, can I claim it on my taxes? How much in yearly salary can I earn if I go back to work? A. If you have reached your full Social Security retirement age, there is no limit on the amount you can earn. However, if you were to return to work for the federal government, in most cases your salary would be reduced by the amount of your annuity.
Q. I’m retired from the Postal Service, and I would like to know if the USPS offers supplement insurance through the Medicare D program? Will I need to go outside of the Postal Service for my supplement insurance? I turn 65 in January. A. Neither the Postal Service nor any other agency of government offers supplemental insurance. You’re on your own.
Q. I turn 56 in August. Is the earnings test calculated from Jan. 1 or after my birthday? A. The Office of Personnel Management only reduces the special retirement supplement of FERS retirees after it is notified by the Social Security Administration. Give them a call at 1-800-772-1213.
Q. I am 54 and have 28½ years in with the Postal Service. My first official retirement date is July 9, 2014. However, I am being told that if I retire now with the Voluntary Early Retirement Authority, my annuity will be higher than if I wait until 56 due to the 5 percent penalty for each year I am under 62. That would give me a 30 percent penalty on my annuity. Is this correct? I just want to go the way I will have the most in my annuity. A. The person you talked to was confused. If you…
Q. I am 56 years old with 27 years of employment at the Postal Service, all FERS years with no military. Contemplating taking the offer but confused about penalties for early retirement. A. Because you would be accepting an offer of retirement, there wouldn’t be any age penalty.
Q. I am a 50-year-old FERS Postal Service employee with 25 years in. If my processing plant closes, am I offered a Voluntary Early Retirement Authority at that point? Can I retire instead of relocating? A. Whether or not a VERA is offered, if you receive a reduction-if-force notice, you could retire on an immediate annuity. That’s because an employee with 25 years of service who is facing involuntary separation can retire at any age.
Q. I am a Postal Service FERS employee with 26 years of service, and I will be 60 years old on Feb. 19. The USPS early-out takes effect Jan. 31. I will be 19 days short of reaching 60 when the early-out begins, so will I be eligible for special retirement supplement? Will I get a penalized for leaving early? A. Employees who are offered early retirement may retire at age 50 with 20 years of service or at any age with 25. Therefore, you will be able to retire, not be hit by an age penalty, and be immediately…
Q. I want to apply for an unreduced annuity at age 60. Is locality pay factored in with the base pay in the computation for monthly annuity payments under FERS? A. Yes, locality pay is considered part of base pay.
Q. I am an unmarried federal employee. I max out my contribution to the Thrift Savings Plan. I plan to work until at least 62, which will give me 21 years of service, or possibly until 65 with 24 years. As a federal employee in FERS and with TSP, what is the best way to provide income for two siblings when I die? I am not opposed to taking a reduction in monthly benefits if that is the best way to do so. My home will be paid off in 2014. I have no other debt and live on about…