Q: I’m a 45-year-old disabled retiree with 25 years of service. If I am getting $2,800 a month on Social Security disability and $1,695.00 on Federal Employees Retirement System disability after my first year, how much will I get when both are combined? I understand the Office of Personnel Management makes some calculations on this, but I can’t figure them out. Based on the information above, can you give me an estimate total of both after reduction. A: I’ll give you the formulas; then you can do the arithmetic. For the first 12 months on FERS disability retirement, a retiree…
Browsing: SOCIAL SECURITY
Q: Why are Federal Employees Retirement System retirees penalized for wanting to work? Why does a rule apply to our retirement when the money does not come from Supplemental Security Income? I have worked for over 30 years and I should receive my retirement check without any penalties or limits. A: Since your FERS annuity cannot be reduced if you continue to work, you must be talking about the special retirement supplement. The SRS approximates the Social Security benefit you earned while employed under FERS, As such, it follows the same rules that apply to a Social Security benefit. If…
Q: I served in the Air Force from 1971 to 1977. In 1977, I joined the Air National Guard. I retired from the Air National Guard in 1991 with 20 years of military service. In 1977, I also got a job with the federal government as a civilian employee under the Civil Service Retirement System. In 1986, I paid back my six years of active-duty time I spent in the Air Force into CSRS. I am planning to retire in 2011 from the federal government with 40 years creditable service in CSRS (this includes the six years of military time…
Q: In previous responses, you indicated that when a lump-sum base closure and realignment payment is made, federal and state income taxes, as well as Medicare deductions, will come out of the payment. You also indicated Social Security deductions can be taken out. As a Civil Service Retirement System employee, I do not pay into Social Security. Does that mean that no CSRS retirement payments will be taken out? Also, the lump sum will be close to $80,000 and should be paid in my last paycheck; are there any limitations on payouts? A: Social Security deductions would only be made…
Q: I served in the Air Force from 1971 to 1977. In 1977, I joined the Air National Guard. I retired from the ANG in 1991 with 20 years of service, including the six active-duty years. In 1977, I also got a job with the federal government as a civilian employee under the Civil Service Retirement System. In 1986, I payed back my six years of active-duty military time to receive credit for them under CSRS. I am planning to retire in 2011 from the federal government with 40 years of creditable service in CSRS, including the six years bought…
Q: I received a federal disability pension in 1991. I retrained and was able to work until 2004, when the same condition worsened. I applied for Social Security disability benefits and received them beginning in 2008. I just received a notice that the federal civil service disability pension is considered a windfall. A calculation will be made with the windfall rule to reduce my Social Security disability. Is this discrimination against the disabled? Is there a way I can fight or protest this situation? A: Apparently you are subject to the windfall elimination provision, which applies to the Social Security…
Q: I was married to a military person for 10 years while he was on active duty. I will be eligible for Civil Service Retirement System retirement and understand the Social Security offset concept. I believe I will be eligible for Social Security benefits based on my ex-husband’s Social Security benefits (I never remarried). Will it be worth it to apply for Social Security benefits despite the offset due to my CSRS annuity? Also, I withdrew three years of deposit in 1980 and was told by a co-worker that it wouldn’t be worth it to pay this back as the…
Q: Will you please explain when the “earnings test” on the Social Security Supplement takes effect for Federal Employees Retirement System employees? What will be the effective date when the supplement is reduced and/or halted if you’ve exceeded the earnings limit? How are your after-retirement earnings reported, how often and to whom? Will the supplement be reinstated if your after-retirement earned income returns to below the earnings limit? A: For a good overview of how the Social Security earnings limit applies, including how things are handled if you retire in the middle of a year, go to www.socialsecurity.gov/pubs/10069.html. The Social…
Q: I plan to retire in June 2011 on my 62nd birthday. If I work up until that date and make approximately $20,000 will my Social Security benefits be reduced? A: The Social Security Administration has a special “first year” rule that lets them pay a full Social Security check for any whole month they consider you retired, regardless of your yearly earnings. In other words, the pay you received before retiring won’t count against the earnings limit. Note: In 2010, if you are below full retirement age, you are considered retired in any month that your earnings are $1,180…
Q: I will be retiring in January with 31 years of federal service. I also have more than 40 quarters to qualify for Social Security. My wife will be applying for Social Security benefits when she turns 62 this January. When we retire, will she be able to collect her full Social Security benefit, and will I be able to collect my share of Social Security under the windfall elimination provision? A: She will be able to collect her full earned Social Security benefit. When you apply for a Social Security benefit, it will, as you pointed out, be subject…