Q. I have 47 years of service under CSRS; I do not plan on retiring for at least three more years. Will I be able to receive more than the 80 percent of my salary, as the law mandates, or can percentage be added to my time? A. While 80 percent is the maximum amount of an earned annuity, you’ll receive a refund of all the retirement contributions you made after you worked for 41 years and 11 months and be offered the option of purchasing additional annuity that, like unused sick leave, isn’t subject to the 80 percent limit.
Browsing: retirement contributions
Q. In 1985, after 16 years of federal service with the Department of Defense, I withdrew all my retirement contributions. I am now 64. How can I compute the amount of payback necessary to draw a pension, or is that possible? A. It would be possible only if you returned to work for the federal government.
Q. I’m debating whether buying back my military time is worth the cost with the changes to the current FERS program. I have three years as a federal employee. I will complete the deposit on May 1, which will give me 23 years toward my retirement. However, I am unsure if I will fall under the current 0.8 percent FERS contribution program or the new 2.3 percent contribution program recently approved. I made my decision to buy back my time base on the old retirement system. Now I think I may have wasted my money. Can you provide some insight…
Q. Are survivor annuities paid to surviving spouse taxable? Distribution code on 1099-R is 4-Death Benefit and no federal income taxes were withheld. A. Yes, they are. However, if there are any unexpended retirement contributions in the late spouse’s account, a portion of the annuity would be tax-free. For more information, go to https://www.irs.gov/publications/p721/index.html.
Q. I worked for the Department of Veterans Affairs for more than six years. Next year I will reach the age of 62. How do I file for retirement benefits? A. If you didn’t receive a refund of your retirement contributions when you left, several months before your 62nd birthday you can send an Application for Immediate Retirement to OPM, Retirement Services Management group, P.O. Box 45, Boyers, PA 16017-0045. If you were a CSRS employee, use Standard Form 2801, if FERS, Standard Form 3107. They are available for download at www.opm.gov, click on Find Form(s).
Q: With the impending increase to our Federal Employees Retirement System contributions, can anyone opt out of FERS? A: There isn’t an impending increase in FERS contributions, only proposals. Whether anyone would be able to opt out if such a change were made would depend on the wording in the law. However, such a provision would be highly unlikely.
Q: I am under FERS. I had a break in service. I left service in 1987. I’m pretty sure I did not draw out any retirement contributions. How can I verify that I didn’t? A: Begin by looking at your service computation date. If it reflects you earlier period of service, then you have proof that you didn’t get a refund of your retirement contributions. If you haven’t been credited with that time and your official personnel folder doesn’t contain any information about your prior service, you can call the National Personnel Records Center at 314-801-9250.
Q: Under CSRS, do you still get your lump sum CSRS contributions back if they completely abolish your position, and are not offered in writing an equivalent position? This would be in addition to your full retirement benefits, minus age penalty. I am 47 1/2, with 31 years of CSRS service, and the only shop planner in my position description. They are talking about wiping out our maintenance department and contracting out. My dad retired about 15 years ago when they abolished his job, and he got his contributions back. Has this changed? A: Because you’d be eligible for discontinued service…
Q: My father retired from the U.S. Postal Service with an annuity in the late 1980s. He passed in August of this year and the OPM retirement person says there are no survivor benefits except to a spouse or disabled child. My father was divorced and never remarried. I am his only child and not disabled. She explained that the annuity was paid out to my father during his life and would be prorated from the beginning of the month he received a check to the date of his death, a monthly health insurance deducted and no other funds are…
Q: My wife is a government employee who was reinstated from former government service (she resigned in 1993). She entered government service in 1980 and was under the old retirement service. She resigned to have a child in 1984 and withdrew her retirement. She was reinstated in 1986 and came under the new retirement system. She again resigned and was reinstated in 2009. She has more than 13 years of government service. Can she pay back the retirement she received plus contributions she would have made over the years to fall back into the old retirement system? A: She may…