Q. I have 37½ years of continuous CSRS-covered federal employment. Early in my career, I worked for three or four years under a position that was, as I recall, 35 hours/week. Will I get full credit for all years worked, or will this part-time position affect my CSRS retirement annuity? A. That part-time service will be treated as full-time when determining your years of service; however, your annuity will be prorated to account for it. To see how that’s done, go to www.opm.gov/retire/pubs/handbook/C055.pdf and scroll to Part 55B. Although this is the FERS section of the chapter, through a change…
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Q. I plan to retire this year under CSRS. I am interested in obtaining a seasonal position with the Internal Revenue Service. I will not receive a buyout. How long do I need to wait to be re-employed by the federal government? A. You would have to be off the rolls for three days. FYI: If you take a federal job after retiring, the salary of your new position may be offset by the amount of your annuity. Before taking a seasonal job with the IRS, you’ll need to check with their personnel office to see if that rule will…
Q. I will turn 62 in March and was planning on retiring with 22 years of service under CSRS. A job opportunity may come available before then, and I’m trying to figure out my options. If I retired now, would there be a significant difference in my annuity because I haven’t turned 62? Should I consider a deferred retirement? If so, until when? Should I keep my federal health benefits even though the new job will have better coverage? I probably will only work there for about five years — the minimum time to become vested in the 401(k) plan…
Q. I will retire this year under CSRS. I lack three quarters to qualify for Social Security benefits. Will Social Security taxes be deducted from my lump-sum payment for annual leave? A. If you are a regular CSRS employee, you haven’t had any Social Security taxes deducted from your pay and you won’t have any deducted from your lump-sum payment.
Q. I recently read that beginning Jan. 1, 2013, all new federal employees will be covered under FERS-Revised Annuity Employee, which basically means they will have to pay an additional 2.3 percent into FERS. However, per the Office of Personnel Management memo, “There are three exceptions to this general rule and the date Dec. 31, 2012, is a key date for each of those exceptions. An individual will be excluded from FERS-RAE coverage if any of these exceptions apply: 1. The individual on Dec. 31, 2012, was covered under FERS; OR 2. The individual on Dec. 31, 2012, was performing…
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 am a CSRS employee with more than 30 years’ service and plan on retiring in a few months. What is the minimal amount I need to put on Form 2801-110 in Section F (Annuity Election), Number 2, which states, “I choose a reduced annuity with a partial survivor annuity (equal to 55% of $_____________ a year) for my spouse named in Section E”? I saw in a related question someone had asked if all they need to put here was $1 of survivor benefit for their spouse to be covered by the FEHB insurance and the answer was…
Q. I retired at 75 percent with a mixed FED CSRS/LE retirement, was not carrying health benefits and DID NOT take a reduced annuity. I have the life insurance 3X. My wife is soon to retire at about 50 percent with 34 years (fed CSRS locked in 21 years plus FERS), and she will be over the MRA of 56. Our Blue Cross Blue Shield coverage is under her name. How should we continue health benefits? How would it affect coverage and her annuity if she DOES NOT take the reduced annuity? I am being told that her annuity is…
Q. I retired at 75 percent with a mixed FED CSRS/LE retirement, was not carrying health benefits and DID NOT take a reduced annuity. I have the life insurance 3X. My wife is soon to retire at about 50 percent with 34 years (fed CSRS locked in 21 years plus FERS), and she will be over the MRA of 56. Our Blue Cross Blue Shield coverage is under her name. How should we continue health benefits? How would it affect coverage and her annuity if she DOES NOT take the reduced annuity? I am being told that her annuity is…
Q. I am a CSRS employee with 34 years of federal service. I am going to retire in 2013. If I suspend my Federal Employees Health Benefits to go under my husband’s Tricare, will I still be able to reinstate my FEHB any time I want during an open season after I become an annuitant? Also, will I still be able to join the long-term federal health insurance plan? A. Yes to both questions. If you suspend your coverage to be under Tricare, you can re-enroll in the FEHB program during any open season. You can enroll in the Federal…