Q. 1) What are all the deductions that are taken out of a federal employee’s check when they retire? 2) Do these reductions stay at the same amount prior to retirement? 3) I have 33 years of service at age 51. I know there is a 2 percent penalty for each year under 55, but what about the three years I worked over 30? What happens to those? A. 1) Federal income tax; and, depending on your situation, state tax, FEHB, FEGLI and FEDVIP premiums, savings account deductions and allotments to organizations to which you belong. If you are receiving…
Browsing: Medicare
Q. Regarding Medicare premiums: Is it taxable income or modified adjusted gross income that is used to determine Medicare premiums for those with higher income? Do you know what the premium amounts will be for 2013? A. The premiums are based on your taxable income, not your gross income. The 2013 premiums haven’t been announced yet.
Q. I am retired from the USPS (under CSRS) and am turning 65 this year. Can I keep my FEHB insurance? Or must I go on Medicare? Thank you for your time. A. You can — and should — continue your FEHB insurance. You should also sign up for Medicare Part A. It’s free, because you already paid for it through payroll deductions while you were working. Further, your FEHB coverage and Part A work together to reduce your out-of-pocket expenses. Whether you enroll in Part B, for which you’d pay the premiums, is up to you.
Q. I retired from the federal government two years ago. I was under CSRS. I paid into Medicare while working. Is it necessary for me to have it taken out of my annuity now that I am retired? How do I get it taken out since they do not automatically do it? A. You already paid for Medicare Part A coverage through payroll deductions. The Social Security Administration will get in touch with you shortly before your 62nd birthday to enroll you. To enroll in Medicare Part B, for which you’d pay the premiums, you’d need to call the Social…
Q. I’m 74 and have been retired for 5½ years. During that time, my medical coverage has been through my working wife’s FEHB family plan and Medicare Part A. I’ve never enrolled for Medicare Part B. My wife has just retired, retaining the FEHB family plan. She will also enroll (SEP) for Medicare Part B. If I enroll for Medicare Part B, will I be penalized for late enrollment? A. Yes, if you were covered by her plan when you were first eligible to enroll in Part B. If so, you may enroll during the eight-month period that begins the…
Q. I’m 74 and have been retired for 5½ years. During that time, my medical coverage has been through my working wife’s FEHB family plan and Medicare Part A. I’ve never enrolled for Medicare Part B. My wife has just retired, retaining the FEHB family plan. She will also enroll (SEP) for Medicare Part B. If I enroll for Medicare Part B, will I be penalized for late enrollment? A. Yes, if you were covered by her plan when you were first eligible to enroll in Part B. If so, you may enroll during the eight-month period that begins the…
Q. When I retire from the Veterans Affairs Department at age 62 in nine years, I will have carried Blue Cross/Blue Shield on myself for 20 years and my spouse for 16. He will be 65 then. Can we continue the BC/BS family plan after I retire? What will be the difference in premiums? I pay approximately $200 per month now. I am worried that I won’t have health insurance because I won’t be Medicare-eligible until age 65? A. Relax. You’ll not only be able to continue your coverage in retirement, but the premiums will be the same as those…
Q. I worked 30 years under CSRS and when the judge for whom I worked retired, our office was “abolished,” and the law clerk and I lost our jobs. I then worked in the civilian sector for six years. I returned to federal court under CSRS Offset for 1½ years. Because of part-time jobs and the six years I worked in the civilian sector, I was eligible for Social Security. I retired after 31½ years of CSRS and the necessary quarters for SS. When SS sent projections before I turned 62, it indicated I would receive about $700 a month…
Q. I am a 64-year-old federal employee and have Blue Cross and Blue Shield’s Federal Employee Plan. I plan to keep that insurance and keep working for the government for several years after turning 65. I am considering whether to sign up and pay approximately $100 per month for Medicare Part B when I turn 65. I know that, as long as I continue to work, Medicare will be secondary to my primary coverage under Blue Cross, but I have found very little that explains what benefits Medicare pays as secondary. For example, will Medicare, as secondary, pay the deductibles…
Q. I retired from the IRS when I was 58. I will be 65 in a couple of months. My wife and I have Blue Cross health benefits through my civil service retirement. Do I need to sign up for Medicare? Which part? Do my Blue Cross premiums remain the same? How much are the Medicare premiums? Are the Medicare premiums deducted from my civil service retirement? A. You should sign up for Medicare Part A because you already paid for it and you won’t have to pay any premiums. Whether or not you sign up for Part B is…