Browsing: income

Q. I know that the Social Security supplement is reduced for any earnings above $14,640 (in fiscal year 2012). If I retire under FERS at my minimum retirement age but my wife keeps working at her job, will her earnings count toward that $14,640? Also, would distributions from my Thrift Savings Plan count toward it? A. Reg: The Social Security earnings limit applies only to your own earnings from wages and self-employment, not anything else. Mike: Your TSP distributions do not count as earned income.

Q. I am under CSRS.  If I retire Dec. 29 and receive payment for unused sick leave, will the payment be considered income in 2012 or 2013? A. Sick leave has no cash value. It can only be added to your actual service and used in the computation of your annuity.

Q. My agency is contemplating a buyout but wants everyone off the books by Dec. 31. I would think it would be beneficial to retire on a date that would roll any buyout payment and any annual leave lump sum into the following tax year, when income would be lower. Am I correct that retiring on Dec. 29 would place me on the annuity role in January, and my Voluntary Separation Incentive Payment buyout and annual leave lump sum would be 2013 income? A. Yes.

Q. I will have 20 years of service on Oct. 26. I have more than 1,300 hours of sick leave saved up. We were told that I could use half of my sick leave and retire early with 20 years of computed service. Now that I am in that window, I am told that I cannot retire with 20 years of service until Oct. 26 to receive the 20-year mark. What happens to the sick leave? Do I lose it, or do they use it to add to my retirement income? A. Unused sick leave can’t be used to meet…

Q. I’m a Defense Department employee under FERS. I have about five years before I can retire. I would like to apply for special pay or Social Security when I retire. Would that affect my being able to work part time, or would I have a limit placed on my income? A. If by special pay you mean the special retirement supplement, you don’t have to apply for it. It will automatically be added to your annuity when it is finalized. Moving on, both the SRS and the Social Security benefit are subject to the Social Security earnings limit. If you have…

Q. I will be retiring next week from federal law enforcement. I live and work in the San Francisco area. I was initially provided with a calculation based on an average high-3 salary of $145,250 and was told I would receive a net of $6,050 per month. However, when I visited Employee Express this morning, I saw that the agency is now listing my high-3 average as $116,000 and my expected net monthly annuity payment would be around $5,000. I pulled my W-2s for the past three years and confirmed that my top average 3-year salary is $145,250. I’m awaiting…

Q. I have been working with the federal government for eight years. I am vested in a retirement program. I earn $69,000 a year. How much will my retirement income be after I retire? A. FERS employees can retire when they meet one of the following age and service combination: age 62 with five years of service; 60 with 20; at their minimum retirement age with 30; and at their MRA+10 (at least 10 years of service but fewer than 30) with a reduction of 5 percent for every year they are under age 62. MRAs range from 55 to 57,…

Q. I have 23 years and 11 months in the Postal Service. I am going to be 60 on June 26. I have not been able to work since June 21, 2011, and have been on leave without pay. I applied for Social Security disability and was turned down. My assessment was inconclusive, leaving out the reason for my disability. So I have a lawyer  who states I have and excellent case, which he says may not be resolved until the beginning of 2013. About a month ago, I put in for early retirement due to financial hardship. Later, I…

Q. I am active Army with a terminal leave date of July 1. I am considering a GS-13 position with a start date of July 1 (I plan to work during terminal leave), but I have to negotiate a step increase. However, I’m being told I can’t use my leave and earnings statement as justification for my current pay. Is that the case? If so, why? A. Your leave and earnings statement is simply a one-month snapshot. In addition, it may be difficult for the folks you are negotiating with to separate the income that represents your job-based earnings from…

Q. I am eligible to retire at age 57 with eight years of CSRS, followed by approximately 24½ years of FERS service. I had employment in the private sector prior to my Postal Service career. The last printout I received from Social Security indicates “at age 62, you will earn approximately $…”   This figure includes those years in private sector. How do I accurately figure the special supplement figure that I can anticipate receiving, since that is based solely on FERS employment years? Also, I am trying to determine what income I will have for the months immediately following retirement. …