Q. An individual is entitled to an immediate annuity if the disability annuity stops or is terminated because he has recovered from the medical condition and he meets the age and service requirements to retire. If he is covered by FERS, would he also be eligible for the special retirement supplement? A. Yes.
Browsing: special retirement supplement
Q. I am a 51-year-old FERS employee whose minimum retirement age is 56. I will have over 30 years of service when I reach the minimum retirement age. A couple of years ago, I went under my wife’s health plan. We incorrectly assumed that she needed five years to become vested and that we could just stay under her plan when we retired (as with FERS). However, she is a Non-Appropriated Funds Defense Department employee and would need 15 years. I am picking up my Federal Employees Health Benefits insurance again so that I will have five years under the…
Q. I will be age 59 in May with 21 years in. How does VERA/VSIP apply? Will I be able to get the special retirement supplement until age 62, and at what age would it start? A. The Voluntary Early Retirement Authority and the Voluntary Separation Incentive Payment are two different things. If an employee is offered a VERA, he can retire at age 50 with 20 years of service or at any age with 25. If he is offered a VSIP, he can accept the money and leave, regardless of whether he is eligible to retire. Because you meet…
Q. I’m a 59-year-old FERS employee with 27½ years of service. If I go on optional retirement at age 60, will I suffer a penalty, and will I receive the special retirement supplement till age 62, when Social Security kicks in? A. No, you won’t suffer a penalty because you’ll be retiring at age 60 with at least 20 years of service. And, yes, you’ll receive the special retirement supplement until you reach age 62.
Q. My Social Security statement shows that at age 62, I will receive $1,500 per month. I have 22 years of FERS service. I’m receiving a $705-per-month supplement. Shouldn’t this be 0.055 times $1,500, which equals $825 per month? A. The formula used to accurately calculate the special retirement supplement is complex and cannot be reduced to a simple formula, like the one you used. To see what actually goes into that calculation, go to www.opm.gov/retire/pubs/handbook/C051.pdf.
Q. I have 26 years of uninterrupted federal service, am 58 years old, in FERS, no military service. 1. Is Voluntary Separation Incentive Pay ever offered without Voluntary Early Retirement Authority, or VERA without VSIP? 2. Can I, at less than 60 years old, accept the VERA/VSIP and retire if one or the other is offered? 3. If I take VERA and am not 60 years old but have over 25 years of service, will I be eligible to receive the special retirement supplement immediately or have to wait until age 60? How about under VSIP only? 4. If I…
Q. I am 50-year-old FERS employee with 28 years of service. If I am offered an early-out and take it, what would happen to my 578 hours of sick leave? Would I still be entitled to get credit for my unused sick leave? Also, would I be eligible for special retirement supplement? A. If you retire before Jan. 1, 2014, you’ll only get half credit for your unused sick leave in the computation of your annuity. If you retire on or after Jan. 1, you’ll get full credit for it. As for the special retirement supplement, you’ll be entitled to…
Q. I plan to retire at age 57 (MRA) with 25 years of service. I want to avoid the yearly 5 percent penalty by postponing the receipt of annuity. Will I start receiving my annuity and Social Security supplement at age 60? A: No, to both questions. To avoid the age penalty, you’d have to postpone the receipt of your annuity to age 62, when you would no longer be eligible for the special retirement supplement.
Q. If I retire at age 56 with 20 years in and take an immediate annuity, would I be eligible for the special supplement at age 60? In other words, would I be eligible for the supplement at age 60 even though I retired four years before? A. Because you would be retiring under the MRA+10 provision (minimum retirement age with at least 10 but fewer than 30 years of service), you wouldn’t be eligible for the special retirement supplement.
Q. I am considering separating from federal employment in July at 58 years old with 21 years and five months of federal service. I will postpone receiving the retirement annuity until I am 60. This will give me 60 years of age with 21 years and five months of service. Since I am separating then doing a postponement of receiving my annuity until 60 which, per the Office of Personnel Management, is different than deferring an annuity, where you will not receive the special retirement supplement, will I get the FERS supplement when I start to receive my postponed annuity…