Q. I had 38 years of federal service with the Architect of the Capitol. Will I receive the extra money paid into CSRS system six years past 32 years? How will that money be paid to me? A. As a rule, CSRS employees have to work 41 years and 11 months to earn an annuity that equals 80 percent of their high-3. That’s the maximum amount that can be paid in an annuity based on creditable service. Only special category employees, such as law enforcement officers and firefighters, can reach the 80 percent limit with fewer years and full months…
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Q. I am a career federal employee with almost 41 years of service and plan to continue my federal employment well beyond 41 years. I understand that the maximum retirement benefit for CSRS employees (excluding sick leave credit) is 80 percent and to achieve that level requires 41 years, 11 months of credible service. Since CSRS employees contribute 7 percent of their salary into their retirement fund, what happens to the 7 percent contribution after completing 41years, 11 months of service and reaching the maximum benefit of 80 percent? A. When you retire, any excess contributions will be returned to you, with…
Q. I am 46 years old. I retired from the Air Force with 21 years, five months. I receive a 60 percent Veterans Affairs Department disability, and I am currently an Army GS-12 civilian. I was hired as a new GS employee on Jan. 19, 2010. So if I understand the new pension contribution, it would include anyone who was hired after Dec. 31, 2007, or those who do not have five years of government service by Dec. 31, 2013. 1. If I make a military deposit, does it change my “new” employee status? 2. Would I still be required to pay…
Q. In making the military deposit, we have two years from the time it is due to make the payment without interest. After that, interest accrues until payment. Does the interest accrual start from the initial time it is owed (separation from military service), or does the interest accrual start at the end of the two-year interest-free mark? A. It starts at the end of the interest-free period. There isn’t any look back.
Q: When someone re-deposits money withdrawn from the retirement fund, is the interest they paid included in computing their annuity? If it is not, does that money go into some kind of general account? A: No, the interest paid is not included in the annuity computation. It goes into the Civil Service Retirement and Disability Fund and replaces the interest lost when the refund was made.
Q: I need clarification of a fine point about calculating the amount of a service credit deposit for a four-month period of temporary service back in 1979 when no retirement deductions were withheld. I know that I would have to pay 1.3 percent of basic pay plus interest. My question relates to the definition of “basic pay.” Would basic pay be the pay I earned during the four months I was a temporary employee ($2,300), or would it be the annual pay rate for a person working at my grade in 1979 ($8,366)? A: The deposit would be 1.3 percent…