Q. Is the lump-sum payment subject to the same deductions and allotments to which one’s regular salary would be — i.e., federal tax withholding, state tax withholding, FICA and retirement? A. Everything except retirement.
Browsing: lump sum
Q. I am covered under CSRS and am retiring Dec. 29. I will have an annual leave balance of 440 hours, which includes hours I must lose or use at the time of retirement. Normally, 240 hours of annual leave carry over to the next year. Will I forfeit the extra hours, or will I get a lump-sum payment for all of the 440 hours of annual leave? A. For most employees, the leave year ends Jan. 12, 2013. Therefore, you’d be paid for all your unused annual leave.
Q. I’ll be 62 years old in March and covered by FERS for six years. After retirement, I’ll leave the country. Besides a small amount in the Thrift Savings Plan, there will be no health care coverage (will be covered by my home country) or other retirements service in the future. Social Security will be my only monthly U.S. income. The rough estimate retirement amount from FERS will be around $260 per month. Do I get the amount that I contributed AND the amount the government contributed in a lump-sum payment? A. No, you wouldn’t get a lump-sum payment. Instead,…
Q. I am doing long-range retirement planning, and the answer I need is not addressed by the OPM website, as the end of leave year page is only shown through 2020. Could you give an estimate of the best days for a FERS covered employee to retire at the end of leave year in 2021 and 2022? My research shows that I need to work until Dec. 31, 2022, to get full credit for the entire leave year. A. I don’t know when the leave year will end in 2021 or 2022. And I’m not going to waste my time…
Q. I retired from FERS on Dec. 31, 2006, and returned to work on May 10, 2009. I am receiving both my salary and my full annuity. Both Medicare and Social Security are being deducted from my paychecks, which is fine. I am receiving my full entitlements from Medicare and Social Security. I am 70 years old. Will my benefits be re-evaluated when I return to retirement status, which will be on or around May 10, 2014? Also, as a retired annuitant, will my sick leave be adjusted to my time in service, and will I be able to draw…
Q. I am a CSRS fed, planning on retiring at the end of 2012. Is there any difference in benefits leaving either Dec. 31, 2012, or Jan 2, 2013? I know that if I retire Dec. 31, my cost-of-living adjustment in January 2013 will be 11/12 of the consumer price index. If I retire Jan. 2, 2013, won’t my January 2013 CPI also be 11/12? In both cases, won’t my annuity begin in January 2013? I’m also planning on cashing in my annual leave and wanted the lump sum applied to the 2013 tax year. I believe either date would…
Q. My husband has been a federal employee since September 2005. He is suffering from Stage IV cancer and will not make the 10-year mark. What survivor benefits are applicable to me and my two teenage daughters? What should I apply for upon his death? A. If he dies while still an employee and has less than 10 years of service, you would be entitled to a one-time lump-sum payment ($30,792.98 in 2012), plus a lump-sum which equals the higher of one-half of his annual basic pay or one-half of his high-3, plus any Social Security benefits and Thrift Savings…
Q. I’m a federal employee with 22 years’ service, GS-15, turning 60 this month, in FERS, and deciding whether to retire Dec. 29, 2012, or Jan. 12, 2013. I understand I will be paid a lump sum for my leave over and above 240 hours in either case (I expect to have an additional 200 or so), but I’m concerned about two Social Security issues: Since my lump-sum payment will exceed the earnings limit for the retirement supplemental, will that payment after Jan. 1 reduce my supplemental SS payment in 2013? Will Social Security taxes be taken out of my…
Q. I am a CSRS employee who plans to retire at the end of 2012 and plans to have 440 hours of annual leave, for which I wish to get paid in 2013 so it will be in my 2013 income. I understand that I could retire Dec. 29, which is the end of the 26th pay period, and receive this annual pay in my last paycheck, which I would receive Jan. 4, 2013. Can I retire Jan. 3 and still carry over my extra leave and get paid for that in the 27th paycheck, which would be issued Jan.…
Q. Can a CSRS Offset retiree cash in or buy out his/her monthly annuity being received for a lump-sum payment, health and survivor benefits notwithstanding? A. No.