Q. Why isn’t OPM publishing how much (percentage wise) of federal retirement annuities are to be withheld BEFORE an individual puts in for their retirement? I have found several other people who plan on retiring who had no idea how much may be withheld from their retirement annuities. It’s like everyone is keeping it a secret. We are all told to plan ahead of time for our retirements, but neither OPM nor personnel offices are telling people how much is going to be withheld from our annuities when we start asking for our retirement estimates. Considering the tidal wave of…
Browsing: FEGLI
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. I plan to retire Jan. 3. In Federal Employees’ Group Life Insurance, I have $55,000 basic and three times Option B for a total of $161,000 of insurance. I have paid 38 years into FEGLI and recently found out that when I turn 65 years old, my insurance reduces to nothing. Due to health conditions — cancer three years ago and diabetes — finding whole life insurance is very expensive and hard to afford. If I have $55,000 of basic insurance and decide to reduce my insurance by 50 percent, which leaves $27,500, how much does my family receive if I should die at…
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. I’m an electronic technician with the Postal Service and applied for a electronic technician position with the FAA. If I were offered the job, would my time carry over? If my current pay is between the pay scales, is it matched to what I currently make? Since I’m already a federal employee, I wouldn’t need to go through probation again, right? Where can I find out the pay scales and how much annual and sick leave are accrued? Should I know or consider any other information? A. Your years of service, leave accrual rate and TSP investments would transfer…
Q. I am 48. I was active-duty enlisted Navy from 1983 to 1993, so I have 10 years’ active duty. I got out as an E-6 with an honorable discharge. I am also 10 percent disabled, which happened when I applied for the CAVET program. I live in California. I took an early-out special separation bonus lump sum to get out after 10 years. President Reagan was drawing down the forces at the time and offered the early out. I don’t see any money because I understand I have to pay back the SSB lump sum. I have been working…
Q. I plan on retiring when I am approximately 62½ years old. I’ve worked for TSA 10 years now and 2½ years will be 12½ total years. What would my retirement include, i.e. health benefits and anything else? A. Your annuity would be 12.5 percent of your highest three consecutive years of average basic pay (your high-3). And you’d be able to apply for a Social Security benefit. You’d also be able to continue your health benefits and life insurance coverage if you had been continuously enrolled in those programs for the five consecutive years before you retired.
Q. My wife is 50 and has been a CSRS postal employee for 32 years. She may lose her job and wants to know if she can retire and freeze her retirement until she turns 56 to avoid the 2 percent per year penalty for her age. A. No, she can’t. If she retires, the reduction will occur on that date. Her only alternative would be to resign from the government and apply for a deferred annuity at age 55, not 56. However, if she is enrolled in the Federal Employees Health Benefits or Federal Employees’ Group Life Insurance programs,…
Q. My mother was receiving a federal annuity check every month. She passed away, and I am trying to understand if the benefits are transferred to her children, or if there is life insurance in place. A. Annuity benefits end with the death of the person who earned them unless there are unmarried dependent children under the age of 18 (22 if enrolled full time in school). To find out if she had Federal Employees Group Life Insurance, you’ll have to call the U.S. Office of Personnel Management at 1-888-767-6738 and talk with a benefits specialist. When you do, have…
Q. I will have 10 years of federal service as of Jan. 27, 2013. I am 59 years old. I may have a job opportunity to return to a private-sector job. If I changed jobs and deferred my annuity until age 62, would I still qualify for government insurance? A. Since you would be retiring under MRA+10, you’d be able to re-enroll in the Federal Employees Health Benefits and Federal Employees’ Group Life Insurance programs but only if you were enrolled in them for the five consecutive years before you retired.