Q. I was active-duty Navy (1980-84), then active Coast Guard (1991-2000). I received a tentative offer for employment with Army a few weeks ago (I’ve been a contractor since 2000). All required documents are submitted. Now I wait. How do I buy my 13 years active duty into FERS? Can I use my existing 401(k) to pay this? How much would it cost me? I also found out that, as of Jan. 1, the deduction for retirement went up to 3.1 percent. I guess a tentative offer before Dec. 31 doesn’t count for hired, so my pay is decreased. Adding…
Browsing: cost-of-living adjustment
Q. How can I find out the total value of my CSRS pension? Is there a methodology or interactive tool online where I enter my annual earnings throughout my career and a value is produced? I am a few years away from retirement and, from my annual personal benefits statement, I see my estimated monthly annuity based on options for when I retire and what survivor benefit I choose. But what is the total value today: past contributions + interest? My situation: totally CSRS (no FERS), no break in service, no extra contributions or withdrawals, just a straight 30 years…
Q. I turned 62 in 2006 October. Since I am gainfully employed, I did not file for deferred annuity until February 2012. To my surprise, my calculation is showing that my eligibility starts in October 2008 and paid arrears only up to October 2008. Secondly, it appears that cost-of-living adjustments are not considered in calculating arrears. Could you please advise me to understand and resolve this issue? A. According to the Office of Personnel Management, “For a deferred retirement, the commencing date is normally their 62nd birthday. The commencing date remains the same even if they don’t apply until a…
Q. I have been on FERS disability retirement from the Postal Service since November 1996. I turned 62 in October and received a letter from the Office of Personnel Management notifying me that my annuity was recalculated and what my new monthly annuity would be. My creditable service calculation is correct, but the high-3 doesn’t look right. FERS Publication RI 98-1 states, “The total service used in the computation is increased by the amount of time you were on the disability annuity roll and your average salary is increased by the FERS cost-of-living increase during the time you were on…
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. Will a COLA be applied in 2013? A. If you are referring to the cost-of-living increase applied to the annuities of federal retirees, the answer is yes, but only if you have been on the annuity roll for 12 months beginning in December 2011. If you haven’t, the amount you receive would be proportional to the time you were on the annuity roll.
Q. I am a 65-year-old federal employee on the CSRS retirement plan. I plan to retire next month after 39 years in the government. I have earned 20 quarters of Social Security credits but need 20 more to qualify for any benefits. Would it be worth my while to work for five more years (20 quarters) in private industry to qualify for these benefits, or will it all be offset by the CSRS retirement? If I choose to work, what is the minimum amount of money I have to make each year or what is the minimum number of hours…
Q. Is the cost-of-living adjustment computation made before or after the survivor annuity reduction is made? If I retired with a $50,000 retirement, approximately $5,000 per year would be deducted. Would the increase be adjusted to the $50,000 amount or the $45,000 amount? A. Cost-of-living adjustments are only made to your base annuity, not the amount you would have received if you hadn’t elected a survivor annuity.
Q. I’m retiring Dec. 31 as a law enforcement officer under FERS. Would I be eligible for the retirees’ cost-of-living adjustment in 2013? A. No, you wouldn’t. However, you would be eligible for 11/12ths of the 2013 COLA, which would show up in your January 2014 annuity payment.
Q. As a CSRS retiree, what is the last day I can retire and still qualify for the full retiree cost-of-living adjustment increase? A. If you retired no later than Dec. 3, you would receive a full cost-of-living adjustment in your January 2014 annuity payment.