Q: I plan to retire this year under FERS and I am considering accepting a job after retirement that will put me over the earnings limit for the supplement. I understand I will lose it or it will be reduced for every year I earn too much. My question is, am I only penalized for the additional years I work? If I retire at age 56, work two additional years that eliminate my SRS, would it then be reinstated for me from age 59-62 when social security kicks in, or would it be reduced/forfeited forever? A: The special retirement supplement…
Browsing: Civil Service Retirement System
Q: I am a recent retiree, younger than 65, and have just received my final annuity computations. I expected Medicare would continue to be deducted and have now read two puzzling things: That Medicare is not taken from annuity payments, and that I must contact the Centers for Medicare & Medicaid Services to have payments withheld. By law, I understand Medicare becomes my primary payer, with my federal health plan second, when I turn 65. My question is: As a retiree under the Civil Service Retirement System, do I “owe” 1.75 percent of my monthly annuity to Medicare and must…
Q: I am 67 years old and have 10 years of federal service. I want to work another 10 years before I retire. I worked for 15 years in government beginning in 1966 before resigning and taking the retirement money. I would need to pay $23,000 at this point to refund that money. Is it worth it, or should I remain in the Civil Service Retirement System Offset program? A: Let me clear up a few points. First, because you took a refund of your retirement contributions before March 1, 1991, you’ll get credit for those years in determining your…
Q: My question deals with my wife’s Social Security survivor benefit upon my death. I am 70 years old and my wife is 68. Both of us started taking Social Security when we were 62. I receive $1,663 in gross Social Security payments a month, and my wife receives $136. I worked in private industry and retired. My wife worked for the Defense Department and retired under the Civil Service Retirement System, never paying into Social Security. My question is, with these figures, if I died today, what would my wife be entitled to? A: Any Social Security spousal benefit…
Q: I am a Civil Service Retirement System Offset retiree (15 years in offset) and turned 62 in October. I [was] scheduled to receive my first Social Security benefit Dec. 22. I have contacted the Office of Personnel Management on several occasions requesting to know how much my annuity will be offset, but no one seems to know. My annuity still has not changed. Is it normal for OPM to be late in changing (offsetting) annuities of CSRS Offset retirees? How will overpayments of my annuity be handled? A: Because you aren’t due for your first Social Security benefit check…
Q: Where does money go after I have the maximum amount of time under the Civil Service Retirement System? I am still working at the U.S. Postal Service. A: After a CSRS employee has 41 years and 11 months of service, he is entitled to the maximum amount of earned annuity, which is 80 percent. If he continues to work, contributions will still be deducted from his salary; at retirement, he can either receive a refund of those contributions or use the money to buy additional annuity which, like unused sick leave, isn’t subject to the 80 percent limit.
Q: I am a Civil Service Retirement System Offset annuitant hired in 1968. In 1985, our branch of government was taken over by the private sector. The private sector bought all of my federal service. In 2002, there was a reduction In force. I was eligible for an early retirement at age 51 and therefore receive two retirement checks: One for federal service and the other for my time purchased by the private sector. As a CSRS Offset employee, at age 62 I am subject to the Offset Social Security calculations but also have the same time purchased by the…
Q: What are the available annuity options for a federal employee with 19 years of service under the Foreign Service Retirement and Disability System (FSRDS) and an additional 21 years under the Civil Service Retirement System? A former spouse has an entitlement for the 19 years under FSRDS, and a current spouse has entitlement for the 21 years in CSRS. Is there an option for two separate annuity computations? Also, what are the various benefits included in a lump-sum payment from the Office of Personnel Management? A: If you don’t take steps to combine your service, you would be eligible…
Q: I am a term employee in the Labor Department covered by Blue Cross/Blue Shield. My term ends Dec. 20. I am also a surviving spouse of a federal employee who was covered under the Civil Service Retirement System. I elected to not take health insurance under the annuity about 15 years ago. I would like to continue my current coverage; can my coverage be converted to the annuity coverage? I am a career status employee with approximately 13 years of federal service, 11 years under CSRS, and I elected not to be included in the Federal Employees Retirement System…
Q: I will be retiring from federal service at age 58 with 35 years of service under the Civil Service Retirement System. I have been paying the 1.45 percent Medicare biweekly payment since its inception in 1983. Will this tax be deducted from my monthly CSRS annuity until I reach age 65? And, without 40 quarters of paying into Social Security, does paying the Medicare tax for 17 years qualify me for free Medicare Part A? A: Deductions for Medicare Part A are only required for those who have earnings from wages or self-employment, not annuities. The fact that you…