Q. I am a postal employee looking to continue my service with the Army Reserve. Child care cost is about to pass my income level with the Postal Service. With my wife as the main bread winner, we are considering having me separate from the Postal Service to be a homemaker. I have 15 years with the Postal Service and some military time. If I enter the Army Reserve, could I combine my Postal Service years with the reserve retirement? A. No, you can’t. There is no provision in law that would permit you to get credit for your civilian…
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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 have six years in the Navy. I understand I can pay back/down those years for maximum retirement benefit. I’m 48 years old, have no savings and started this job to get on with planning for the future. I am a GS-7, step 1. I’m planning on contributing at least 5 percent a month of my pay, and I understand the Veterans Affairs Department will match 4 percent. I’d like to retire at 62ish. Here is a copy of my latest leave and earnings statement: ———————————————————————- Pay Period: 12-22 Name: ALLEN, TROY J Gross Pay 1,586.40 Federal Tax Amt Withheld 179.76…
Q. I am 46 with 22 years of service, and have been told that I will soon receive a letter of directed reassignment to a job in my same grade far outside my commuting area. When the letter arrives, if I should decline to move to the new position, what are my options for drawing retirement? How about insurance? Severance pay? What about my 401(k) in the Thrift Savings Plan? My performance ratings are not an issue. A. Reg: Because you wouldn’t meet the age and service requirements to retire, you’d only have one option. If you didn’t take a refund of…
Q. Can a FERS employee who has already left the federal position (resigned for health reasons) take a lump-sum FERS payment instead of monthly retirement payments? I was told a FERS employee could not take a lump sum unless he or she has a terminal illness. I would like to start a business with that lump sum. A. As a rule, you can’t receive a refund of your retirement contributions if you are eligible for immediate retirement. The terminal illness exception you referred to only applies to someone who has a life expectancy of less than two years and is…
Q. I have 20 years of active-duty service (Army E-6) and have just retired (actual retired date will be Dec. 1). I have been hired by the federal government as a GS-11. Would it be financially beneficial for me to buy back my military time and contribute it to my federal civilian retirement down the road? If I buy back my military time, will that 20 years allow me to retire from my civilian position early, maybe in 10 years with a total of 30 years of service? What is the impact or consequence of this on my military retirement?…
Q. I am 47 years old and worked for the post office for three years. During that time, I bought back my military service time of eight years. Am I eligible to someday get that retirement for the 11 years? If not, will I be reimbursed what it cost to buy back my time? Is the Thrift Savings Plan a separate entity, and when can I start receiving that? I’m currently working away from the federal realm. A. Reg: No, you wouldn’t be eligible for an annuity because you didn’t have at least five years of actual civilian service. If…
Q. I am going to be starting with the federal government in December. How much will I be contributing to my pension account? Will it be 0.8 percent or 3.1 percent? This will be my first job with the federal government. A. If you are hired before Dec. 31, you’ll be contributing 0.8 percent of basic pay. Anyone hired after that, or who returns to government employment with fewer than five years of service, will be contributing 3.1 percent.
Q. In 1985-87, I worked for the railroad and I was paying into FERS. I left without being vested in the system. Now I have completed five years in FERS. Am I able to buy the railroad retirement time of two years and apply it to my FERS? I called the railroad retirement system and they said the federal money I contributed was sent to Social Security. A. Unfortunately, no.
Q. I am a Defense Department civilian employee under FERS. My date of birth is March 15, 1954. My EOD was Oct. 1, 2007, which gives me five years of service. I have accrued 111.75 hours of annual leave, 80 hours of sick leave and 8.5 credit hours as of the pay period ending Oct. 6. I do not meet eligibility requirements for an early retirement under FERS, so If I resign within the next few weeks, what is the process I need to go through, and what can I expect as far as payout? Will I lose any of…