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…
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Q. I read some of your responses to questions regarding this subject and I’m still confused. So, here are my questions: I retired from the federal government with 36 years of service under the Civil Service Retirement System. My wife is qualified for Social Security when she reaches the appropriate age. Will she be able to draw her full Social Security benefits? Also, if I am qualified for Social Security, 40+ quarters paid in, will I be able to draw some minimum amount? Please explain your answers or provide a reference so I can look up the particulars. A. The fact…
Q. I was hired by the State Department on Jan. 22, 1984, and was placed under the FERS retirement plan. I have prior active duty and reserve military service. My question(s): Does my military count as service towards retirement and if so, was I placed in the wrong retirement system? If that is the case, is there anything that can be done at this point in time to be placed in CSRS? A. You were placed in the correct retirement system. To be eligible for CSRS, you would have had to have had five years of actual CSRS service before Jan.…
Q. Can I withdraw from my CSRS to make a home purchase? A. If you are asking if you can withdraw some of the retirement contributions that have been deducted from your salary over the years that you have been employed by the federal government, the answer is no. The only way to get access to that money would be to resign from the government and ask for a refund of all your contributions. Of course, if you did that you would void any entitlement to future benefits.
Q. I have approximately 34 years with the federal government. I am under CSRS. I have paid for Blue Cross Blue Shield health insurance since I was initially employed. I will be retiring within the next couple of months. While employed, the government has paid for a large portion of my health insurance premiums, and I pay a much smaller portion. When I retire, will the same paying cenario continue, i.e., the government pays a large portion and I continue paying a smaller portion? A. There won’t be any change in the percentage of premiums shared by you and the…
Q: I will be retiring under CSRS and plan on returning as a rehired annuitant under the National Defense Authorization Act hiring authority for the part-time re-employment of civilian retirees. What is the minimum break in service necessary to obtain a payout for unused annual leave? A: You misunderstand how the process works. When you retire, your unused annual leave will be projected forward as if you were still on the payroll. When you return to work for the government, you will have to repay any part of the lump-sum annual leave payment that overlaps with your period of re-employment. For example,…
Q: I have been retired from CSRS for five years. I just saw some briefing slides on “Non-Foreign Area Retirement Equity Assurance Act of 2009.” It mentioned phasing in locality pay over three years (2011-2012). I am a math analyst, and I like taxes, but still can’t understand the slides. Looks like an advantage, but I’m still trying to understand. Please help explain this. A: The purpose of the act is to phase in the conversion of non-foreign area cost-of-living adjustments — which aren’t included in the computation of an annuity — to locality pay, which is included.
Q: My wife and I are both CSRS retirees. During our active careers and up to this point in our retirement she has been covered under my family health plan. Now that our youngest son is in the Air Force we want to switch to two single plans. Is that possible? Do we have to do it during open season? A: Yes, you can switch to two self only enrollments, but the only time you can do it is during the annual open season.
Q: I was hired by the USPS on Jan. 5, 1985, as a casual. Two weeks later, on Jan. 19, 1985, I was converted to career status. I was told at the time that was because of a new retirement system going into effect, and I have been in FERS my entire career. My question(s): Is there a significance to the date Jan. 19, 1985? If FERS did not become effective until Jan. 1, 1987, was I placed in the wrong retirement system? If that is the case is there anything that can be done at this point in time to…
Q: I am a letter carrier with the Postal Service and am under CSRS. In 2006 I received a divorce and as part of the settlement my ex-wife will receive a portion of my retirement. I became eligible to retire at the end of 2008 when I reached 55 years of age. However, for financial reasons I cannot afford to retire at this time. Can my ex receive her share of my retirement now even though I continue to work and am not retired? A: As a rule, we’re not qualified to answer questions about divorce; however, I can tell you that your…