Q. I can start drawing Social Security this year, but I am retired from the federal government under CSRS. I had eight years in the Marine Corps, which I got credit for at retirement, and I didn’t pay the deposit of 7 percent for those years. Will my government retirement check go down? I read that I am already being penalized 10 percent each year because I didn’t pay the deposit. A. If you are eligible for a Social Security benefit at age 62, those eight years for which you didn’t make a deposit will be eliminated and your annuity recomputed downward.
Browsing: penalty
Q. I have 26 years of federal service under FERS. I am 51 years old. I would like to leave federal government. Am I eligible to apply for a deferred retirement? If so, how is my penalty calculated? A. Because you have at least 20 years of service, you could resign and apply for a deferred retirement at age 60. Your annuity would be calculated using the standard formula: 0.01 x your high-3 x your years and full months of service. Your high-3 would be determined by your highest three consecutive years of average salary on the day you left.
Q. I have a question that follows up on a question and answer from Nov. 19, 2012. Could you explain in a bit more detail what is meant by the following statement?: “There are limited opportunities for a retiree to go back to work for the government either full time or part time while receiving both his annuity and the full salary of his position.” Do you mean, for example, that, in most cases, the law prohibits a retiree of one federal agency from working part time for another federal agency, or imposes a negative consequence upon such a retiree…
Q. I retired from federal government Dec. 31 2011; signed up for Social Security on Jan. 24, 2012; and started drawing benefits in February 2012. I did not go back to work until July 2012 and worked until December. In some of those months, I exceeded the $1,200 threshold. Does Social Security average the 11 months, or will they penalize me for each month separately? A. The earnings test is applied when you earn more than the annual limit during a calendar year. In 2012 that limit was $14,640.
Q. I am retired under CSRS with survivor benefits for my spouse. I have Medicare Part A and Federal Employees Health Benefits Blue Cross/Blue Shield family plan. My spouse has just become Medicare eligible. Since there is a penalty (140 percent) for me to pick up Part B, we are contemplating continuing with the Medicare Part A and FEHB. The adviser at Social Security questioned our health insurance coverage after I die, noting the penalty in picking up Part B later. I assume that FEHB coverage will continue with the survivor benefits. Also, will the cost of the FEHB become…
Q. I am 68 years old and signed up for Medicare Part A before my 66th birthday. I have not signed up for Part B for several reasons. 1. My husband is 60 years old and we have insurance coverage with Federal Employee Plan Blue Cross/Blue Shield. 2. We are posted out of the country, in the Czech Republic. 3. I have no occasion here to use Medicare or incur its costs. Health costs are self-paid upfront in full and then partially reimbursed by our insurance company. I believe individuals are penalized 10 percent per year for not signing up for Medicare when…
Q. I plan to retire from the Postal Service at the end of February, when I reach my minimum retirement age of 56. I will have 21½ years of service and will be retiring under the MRA+10 provision. I plan to start taking my annuity payments at that time. Will I also be entitled to the special retirement supplement? A. No one who retires under the MRA+10 provision is eligible for the special retirement supplement. You also need to be aware that when you retire, your annuity will be reduced by 5 percent for every year (5/12 percent per month)…
Q. I’m retired from the Navy with 21 years of service (December 1984 to December 2005). I just started a job with the Veterans Affairs Department in a civilian GS position. I’m listed in Leave Group 1. Because I am retired, I have to start from the beginning in Leave Group 1. Other service members who did not retire start off in Leave Group 2. It feels like I’m getting penalized for being retired. They say some of the campaigns I served in may count. Is this true? If so, how does it work? A. You’ll find what you’re looking…
Q. I’m 58 and have worked under FERS for 20 years. If I take an early-out, do I get any penalties? What would my retirement benefit be? A. If you retired under the Voluntary Early Retirement Authority, you wouldn’t be subject to an age penalty. Your annuity would be computed using the standard formula: .01 x your high-3 x your years and full months of service.
Q. I am 56 years old with 27 years of employment at the Postal Service, all FERS years with no military. Contemplating taking the offer but confused about penalties for early retirement. A. Because you would be accepting an offer of retirement, there wouldn’t be any age penalty.