Q. I am a Postal Service FERS employee with 26 years of service, and I will be 60 years old on Feb. 19. The USPS early-out takes effect Jan. 31. I will be 19 days short of reaching 60 when the early-out begins, so will I be eligible for special retirement supplement? Will I get a penalized for leaving early? A. Employees who are offered early retirement may retire at age 50 with 20 years of service or at any age with 25. Therefore, you will be able to retire, not be hit by an age penalty, and be immediately…
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Q. I am 59 years old and will have 23 years of service under FERS with the federal government in January. If I decide to retire via Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay, will I take a penalty in my retirement pay? If so, at what percent would that be? Also, would I still receive the supplemental benefit if I leave? In filling out the form for VERA/VSIP, would I select the VSIP or VERA? Would I be eligible for the VSIP? A. If you were to accept an offer of early retirement, you wouldn’t be subject to the…
Q. My friend, a co-worker, was diagnosed with cancer about a year ago. She is at the point where she may have to go into hospice. She is looking into applying for disability retirement, but is there another option if an individual may not live long enough to receive all of her retirement pension? Can she withdraw her total retirement and not be penalized for federal taxes? Will her creditors take her life insurance? A. If she were to resign from the government, she could request a refund of her retirement contributions. Because she already paid taxes on those contributions…
Q. The person who processes retirements at my agency told me that I could not retire with 32 years at 51 years. I am an offset employee under CSRS. I thought the Office of Personnel Management indicated that if you retire before 55 years of age, you are penalized 1/6 (no more than 2 percent for the first year and 2 percent for every after for being under 55. So, I resigned. It’s only been a few days. The agency person said I could only retire at this age if they were offering a buyout. That seems right because I was offered…
Q. I retired under CSRS on a Voluntary Early Retirement Authority at age 46 with 26 years of service. I’m considering going back to work with the agency from which I retired. I’m still under age 55 (53 years old). What benefit would returning to full-time work be for me? Can I retire again any time after 55? Will my additional years apply to my retirement the second time around? What happens to penalties previously taken on early retirement? A. If you return to work for the government, your annuity will terminate and you’ll be treated as if you had…
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 FERS employee with 27 years of service at 56 years old. Because my spouse is ill, I will have to retire early (sometime this year) to take care of him. Do I get penalized the 5 percent? Do I get to keep health and life insurance? And do I receive the Social Security supplement? A. Because you would be retiring under the MRA+10 provision, your annuity would be reduced by 5 percent for every year you were under age 62 and you wouldn’t be eligible for the special retirement supplement. On the other hand, you would be…
Q. Current age: 56 Entered U.S. Navy active duty: May 1978 Active-duty military time: 11 years, four months Retired reservist after 26 years as an O-5 Entered civil service: November 1997 Current paygrade: GS-9, Step 8 Received a $30,000 severance pay when released from active duty in January 1989 Points accumulated, active and reserve, for retirement: 5,245 What do I need to do to retire at the end of this year? I know you can’t tell me what I should do, but if you could give me guidance as to what I need to do so I can make an…
Q. I retired from the Navy last year (I have 20 years in) and am receiving my pension. I took a GS-12 job and am under FERS. I’ll be 39 in a few weeks. If I wanted to retire at age 57, what would be my monthly payout? For how long? I understand that there is a three-tier system using the Thrift Savings Plan and Social Security. Am I allowed to draw on those at age 57, or do I have to wait until age 62? Reg Jones: You could retire at age 57 under the MRA+10 provision (minimum retirement age…
Q. I worked for the Interstate Commerce Commission from September 1984 to September 1994. Will I be eligible to collect retirement benefits when age appropriate? A. Yes, if you didn’t take a refund of your retirement contributions when you left government. Because you had at least five years of service, you could apply for a deferred annuity at your minimum retirement age (MRAs range from 55 to 57 depending on your year of birth). However, your annuity would be reduced by 5 percent for every year you were under age 62, unless you postponed the receipt of your annuity to…