Q. I will be retiring this year from FERS under MRA +10. I plan to select an immediate annuity postponed for payment to start Dec. 12, 2014, when I turn 62. I want to have my sick leave used to calculate my annuity based on full amount so I will select a date of Jan. 1, 2014, or later. To ensure I can cash out maximum annual leave, what is the last day of the 2013 leave year so that I can take a lump sum for unused annual leave of around 340 hours? A. For most agencies, the 2013…
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Q. I plan on retiring June 28. I have a service computation date of Sept. 14, 1978. I will have 795 hours of sick leave. Are my calculations correct that I will have 35 years and two months for retirement? A. To confirm how much service time you’ll have for annuity computation purposes, go to www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c050.pdf and scroll to Section 50A3.1-4.
Q. I work for the Postal Service. I have 34 years and five months under CSRS. I will be 55 in October. If I What percentage would I receive, retiring with the Voluntary Early Retirement Authority? A. Get out your pencil and paper (or calculator). Here’s the formula: .015 x your high-3 x 5 years of service, plus .0175 x your high-3 x 5 years of service, plus .02 x your high-3 x all remaining years and full months of service If you retire before age 55, deduct 1/6 percent for every month you are under age 55.
Q. When doing an online search about leave without pay during the high-3 years for annuity calculation, I found the FedExperts response from Nov. 30, 2012. It stated that less than six months LWOP per calendar year does not count against time in service, nor does it reduce one’s salary calculation for the high-3 years. However, on my CSRS Personal Benefits Statements for 2011 and 2012, it appears that it does reduce the retirement annuity. In September/October 2011, I took 79 hours of LWOP. My Jan. 2, 2011, CSRS PBS shows a high-three of $110,657, and an annuity of $6,982…
Q. How many years of federal service does one have to work before retiring and receiving the exact amount of pay they are getting while working? Someone said you had to work until 35 years of service to receive your full retirement pay. A. Regardless of which retirement system you are in, it would be impossible to retire and receive an annuity that equaled what you were earning as an employee. Under FERS, even if you worked for 50 years, your annuity would only equal 55 percent of your highest three years of average salary (.011 x your high-3 x…
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 a Postal Service level 21 employee, and will retire with about 41 years and 11 months in early 2013 with my high-3 close to my frozen level 21 value. When I retire, I will have been detailed to a level 23 position for about a year and a half, with a modest increase in pay during that time. Will the Office of Personnel Management use only my level 21 pay for annuity calculations or will the detail/higher level pay be considered? A. A high-3 is based on the highest three consecutive years of average salary from which…
Q. I began federal employment at age 55. I hope to reach age 70 with 15 years of service. My goal is to add federal retirement with Social Security for maximum retirement. Could I potentially earn $1,666 per month, or 30 percent, with a base salary of $65,000? A. Your FERS annuity would be 15 percent of your high-3 (.01 x your highest three years of average salary x your years and full months of service). To get an estimate of your Social Security benefit, go to http://ssa.gov/planners/benefitcalculators.htm and click on Quick Calculator.
Q. I am about to resign from the Postal Service as a carrier after 21 years. At my minimum retirement age of 56 years and six months, can I draw my retirement without penalty? Can I draw it early with a penalty? A. If you resign from the government, you can apply for a penalty-free deferred annuity at age 60. Your annuity will be calculated using the standard formula, with your high-3 being the one you had when you left.
Q. I retired in December 2011 from the Bureau of Prisons, after almost 22 years. I did the normal retirement as a law enforcement officer. I am planning to apply for Social Security disability. If I get approved for SSDI, could the award affect my annuity in any way? A. Being approved for SSDI wouldn’t affect your FERS annuity. However, it would affect any Social Security benefit you were entitled to. For more information on the interaction between the two benefits, call 1-800-772-1213 and talk to a Social Security benefits specialist.