Q: In 2008, I retired involuntarily at 60, with 20 years under FERS, because of funding cuts. In 2009, I was re-hired in a permanent GS position by another department. My salary was offset by the amount of my annuity. I am planning to retire after completing at least five, or six+ years, in 20015-16. How will my re-determined annuity affected, under following conditions: (1) do I qualify for 1.1 percent per year rate, instead of 1 percent, as I have now; (2) my earlier high-3 was approx $120,000, at GS14-10 for all years, whereas as GS-13/10, in current job…
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Q: I entered 1811 service at 36 after five years of military time and six years of non-1811 federal service. I have bought my military time in. Am I correct in calculating the following for retirement: 20 x 1.7 = 34 percent 6 x 1.0 = 6 percent (non-1811 federal service) 5 x 1.0 = 5 percent (military time) Total: 45 percent of high three. A: Yes.
Q: I am working full time and plan to retire soon from the Department of Justice under FERS. Because my position will not be posted now due to the hiring freeze, I am looking at delaying my retirement but going part time (two to three days a week) for a few months. Can you tell me what disadvantages there might be to doing this? Could this have any effect on my retirement benefits/annuity when I finally do retire in a few months? I heard that the part-time status is somehow prorated and may decrease the amount of my ‘high 3’…
Q: Could you please tell me what year or when the law went into effect that states that overtime is not included when calculating a high-3? A: To the best of my knowledge, overtime has never been considered to be a part of base pay when computing an employee’s high-3.
Q: Is there a time limit on when you have to hold that salary rate for it to be counted for a good year? Here is an example: If I get awarded a QSI (quality step increase) in the month of October and hold that rate for three months before my next step goes into affect in January, will that rate I received in October for three months be counted as a good high-3 figure? A: Your question is based on a false premise. A high-3 is calculated by adding up the base salary you received for each pay period…
Q: I know it won’t matter for at least the next several years, but when we receive a pay raise at the beginning of the year, how long do we need to be at the new salary for it to be a part of the computation of our high-3? A: A high-3 is simply the average of the three highest consecutive years of base pay, whenever they occur. Assuming that your most recent 36 months are the basis for your high-3, for every additional month you work at the same or higher pay rate, one month will be dropped from…
Q: I am a federal employee who will soon be going in for open-heart surgery. I am 58 years old and will be 59 in March. I have until I’m 60 to reach 20 years of service for early retirement. I am also a retired E-6. What would happen if the doctor after the operation says I can no longer work? Would I be given 100 percent disability of my base pay? A: As an employee under the Federal Employees Retirement System, if you were approved by the Office of Personnel Management for disability retirement, during the first 12 months…
Q: Can the president change the high-3 retirement formula to high-5 by executive order, or must this change be approved by Congress and then signed by the president? A: The high-3 formula is a matter of law. To change that would require that the Congress pass legislation and the President sign it into law.
Q: Under the Federal Employees Retirement System, after 20 years, your annuity is figured at 0.011 percent of your high-3 salary average multiplied by your years of service. Below 20 years, the percentage used is 0.01. With the new law allowing 50 percent of unused sick time to be used for annuity calculations, can that time also be used to meet the 20-years-of-service criterion? A: Let’s first get the computational facts straight. The standard FERS formula is as follows: 0.01 x your high-3 x your years of creditable service. The 0.011 multiplier is only used if you retire at age…
Q: In Alaska we are transitioning to locality pay from COLA. The transition began in January 2010 and will be fully in effect in 2012 for high-3 calculations. Because of this move from COLA, we are in the process of gaining a substantial amount of high-3 earnings for our retirement calculations. How does OPM handle the average if one retires at the end of June 2012, just two and a half years into the transition period? I can see that one would use all of 2010 and then all of 2011, but that last 12-month period is the question. A…