Q. I served for 13 years and four months in the active-duty Air Force after graduating from a service academy. After taking a job in the airline industry, I continued serving in the Air Force Reserve for another 10 years. I turned 60 in March and started drawing reserve retirement pay in April. I am considering employment as a Federal Aviation Association air safety inspector when I retire from my airline job, perhaps this year. I’ve been told by a friend at the FAA that all of my active-duty time plus my time at the service academy will count toward…
Browsing: high-3
Q. I was just told by my human resources specialist that when pretax Federal Employees Health Benefits premiums reduce my taxable income, they also reduce my salary for the computation of high-3 average salary for retirement. Is this true? It doesn’t sound right to me, and I’ve never heard such a thing. A. You haven’t heard such a thing because it isn’t true. Your high-3 is based on your highest average pay rates during any three consecutive years before any deductions are taken from that pay.
Q. I have questions on calculating the FERS annuity. Assume for simplicity’s sake that my high-3 is $50,000. When you say years and months, is that decimal — i.e., 20 years and six months would be 20.5? If so, 20 years at age 60 (multiplier of .01) is $10,250 and if 62 (multiplier of .011), $11,275? Second, this is the annual annuity, so the monthly check is that amount divided by 12 or $854.16/ $939.58 per month and then taxes, etc., are deducted? Am I missing anything here? A. Well done. You are right on all counts.
Q. I am planning to retire the month after I receive a step increase. Will this increase be factored into my high-3 for retirement annuity purposes, or must I extend my retirement date to take advantage of this? If so, for how long? A. Yes, it will be included. However, since you high-3 is made up of 78 biweekly pay periods, the impact it will have on your annuity depends on how long you are receiving it. If you only received the increase for one pay period, its effect on your annuity would be marginal at best.
Q. According to my leave and earnings statement, my service computation date is Feb. 28, 1971. So on Feb. 28, I will have 42 years of continuous federal government service. I am under CSRS and have paid back my military contribution. So I reached my maximum annuity based on actual service that’s allowed under law: 80 percent. How is this annuity computed? I know it is based on my high three grades, but how is the high-3 established? Is there a certain amount of time required between these grades? Also I have been told that after 42 years of service,…
Q. I am 50 with 28 years of service. I work for the Postal Service under FERS. I make $53,000 per year. Can you tell me how much I would get if I retire on disability? Will that affect my supplement amount if I retire before minimum retirement age? A. First things first. If you apply for FERS disability retirement, you must also apply for Social Security disability benefits. If you don’t, the Office of Personnel Management won’t process your application. If approved for FERS disability retirement, for the first 12 months, you’d receive an annuity that equaled 60 percent of your…
Q. I am a 62-year-old federal police officer. I have over 33 years of combined military and civilian time. I have an adjusted service computation date of Jan. 4, 1978, and I have FICA, CSRS (partial) and FERS offset. Promotions and upward mobility are few and far between in my job series, not to mention reaching a “high- 3.” I am contemplating retirement. However, since we no longer have a local human resources department to assist us, I am writing to ask if you can advise me. A. It doesn’t make any difference what level of income is used, the…
Q. I am a letter carrier with the Postal Service and am 58 years old. I have 25 years of service and am considering deferred retirement due to health issues. As I understand it, I should be able to start my retirement annuity at age 60 with no reduction in benefits. Is this correct? A. Yes. Your annuity would be computed using the standard formula and based on your high-3 and years of service on the day you resigned.
Q. I don’t understand the years and months of federal service for the annuity calculation. Would a year be 12 months, thus, say, 20 years and six months = 320 months, or 20+6 = 26? I get the 0.011 and the high-3 methodology, just stuck on the above. A. Using your example, 20 years and six months would be 20.5 years.
Q. I am a federal firefighter and a FERS employee. In 2022, I will have 21 years of creditable service and four years of bought-back active military time and be 48 years old. 1. Will I be able to retire under the provisions of 25 years of service at any age? 2. Will I receive the special category retirement percentages (1.7 x high-3 x creditable service, etc.)? 3. Will I receive the special retirement supplement until 62? 4. Will I not be able to withdraw any Thrift Savings Plan annuities until 62? A. Reg: 1. No, you won’t be able…