Q. Since retirement and receiving pension from CSRS Offset at age 59, the offset was applied at age 62. Can I be denied payment of the offset amount by Social Security? Denial was based on my current self-employment with an income higher than the minimum level for early retirement. I am qualified for other retirement benefits at age 66. A. Yes, if you exceeded the Social Security annual earnings limit. It reduces your Social Security benefit by $1 for every $2 you earn above the limit, which is $14,640 in 2012. If you had reached your full Social Security retirement…
Browsing: annuity reduction
Q. I am a foreign service officer and plan to retire at age 51 under FSPS (similar to FERS). FSOs may retire as early as age 50 if they have at least 20 years of service. I had understood that the Social Security earned income limit (currently $14,160) would be applied to my annuity supplement (like FERS supplement) after my first year of retirement. However, another FSO who is already retired told me that her tax accountant told her that income over the $14,160 earned income limit does not reduce the FSPS annuity supplement until the retiree reaches 56 years…
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…
Q. I bought back my military time and will have 15 years (combined military/federal service) in 2013. I am under FERS. My husband has a rare form of cancer that has left him permanently disabled and his prognosis is unknown due to the rarity of the cancer. Is it possible for me to retire early — I am 49 — and keep my benefits so that I can take care of him? A. Unfortunately, no. The earliest you could retire would be at your minimum retirement age, which is 56. Even then, your annuity would be reduced by 5 percent…
Q. I am under CSRS Offset. My retirement plan has always been to retire and get a non-civil-service job. My idea was that the CSRS, even Offset, pension would be my bread and butter and the other job, probably part time, would be a supplemental. What I have read about CSRS Offset seems to indicate that it won’t work. As of age 62, I will get some money from CSRS and some from Social Security. But if I am working, won’t that stop me from getting the Social Security? A. If you are retired before age 62, when you reach…
Q. I am a CSRS employee with 33 years of federal service and I am 54 years old. My agency (the Postal Service) is offering a Voluntary Early Retirement Authority at the end of January. I am a disabled vet with 80 percent rating. Should I take the VERA or apply for medical retirement? I have paid all required quarters for Social Security, and have a daughter still in school. Which method is more beneficial? I plan to apply for 100 percent Veterans Affairs compensation as service-connected injuries are more disabling. A. Based on your years of service, the only…
Q. I work for the Postal Service. If my job moves 75 miles away and I only have 15 years of FERS under my belt but will not move, what would be the difference in dollar terms under FERS of resigning with 14½ years at 43 years old vs. putting up with commuting or renting during the workweek for five more years of FERS to make 20 total years at 50 years old. Last high-3 basic pay would be around $56,000 per year. A. If you really want an answer to your question, you’ll have to hire a financial adviser…
Q. I will be 60 years old in February. I will have 16 years and five months of total service with Customs and Border Protection and am covered for retirement with FERS. What does the 5 percent penalty mean “if I retire under the age of 62”? Does this apply only to my Social Security benefits or my FERS retirement? I will not ask for any Social Security benefits until I reach the age of 62. I am also retired from the military with 20 years of total service. A. Because you have fewer than 20 years of service, you’d…
Q. I worked for the federal government from 1975 to 1983. I was under CSRS. I worked in private industry from 1984 to 2008. I returned to federal government in 2008 until present. I was placed in CSRS Offset upon my return to the federal government, and I am still under CSRS Offset. I read somewhere that if you have 30 years of substantial earnings where you paid into Social Security, the windfall elimination provision would not apply. My understanding is that since I have paid into Social Security from 1984 and will continue to pay into it until 2019,…
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.