Q. I retired in 2004 from the Postal Service on a CSRS disability. I had 28 years total service (paid back military time) and am 100 percent disabled through the Veterans Affairs Department (combat-related). At the time of separation, my personal office told me after age 62 (August 2011), I would no longer have to pay taxes. Is that true? A. There isn’t any tax advantage to being retired on CSRS or FERS disability unless you are totally disabled for all gainful employment. Since the Office of Personnel Management can’t make that determination, you’ll have to check with your local…
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Q. Please tell me approximately how much money I will receive upon expecting to retire June 3 with accrued annual leave of 240 hours, use-or-lose of 208 hours, plus 49 years of government service? A. To find out the gross amount you’d receive, multiply your hours of unused annual leave by your hourly rate of basic pay. For example, if you had 240 hours of unused annual leave and your rate of basic pay was $20 an hour, then your lump-sum payment would be $4,800. However, the amount you will receive will be less because federal taxes, state taxes (where…
Q. My husband and I are both 61 and considering retiring next year. I’m a CSRS Offset employee with approximately 32 years of service (complicated by a break in service for which I withdrew my retirement and never repaid it). My husband worked 41 years for the railroad. If I die, and he gets a survivor annuity, will it be subject to the windfall provisions of a reduced benefit of $2 for every $3 because he never paid into Social Security? If so, would it be better for me to take my full annuity and not have it reduced for…
Q. I retired (CSRS) on April 30. I have 31 years creditable service. I am 65. I did not buy back my four years of military service. I know there is a 2 percent per-year reduction in annuity. I will receive 58 percent instead of 66 percent. I will be eligible for Social Security benefits in December. I will be 66 then. I had 40 quarters paid into Social Security before starting work for the government. Will there also be a reduction of the Social Security benefits? If so, how much? A. Yes. Because you didn’t make a deposit for…
Q. I’m a retired letter carrier, CSRS, and paid the Office of Personnel Management $5,000 to buy back my military time, of which $3,000 were interest paid in 2011. Is this interest deductible? A. No, it isn’t.
Q. I’m retired from the federal government under CSRS, receiving my retirement, but my husband passed away and Social Security tells me I cannot receive his benefits. He put into Social Security for 40 years, yet I’m not entitled to his benefits? Please advise me if I can collect. A. Because you are receiving an annuity from CSRS, a retirement system in which you didn’t pay Social Security taxes, your spousal Social Security survivor benefit is subject to the government pension offset provision of law. The GPO reduces that benefit by $2 for every $3 you receive in your CSRS annuity.…
Q. My mother worked for the Department of the Army for 36 years. She retired at age 57 and died on March 22, 2007, at the age of 77. On April 1 of that year, her retirement check was deposited into her bank account for approximately $1,500.00. This money was returned to the federal government by her bank due to legal requirements of the government. What happened to that money? It seems to me that she was only retired for 20 years and she should have had at least 16 years left of retirement benefits. What happens to the remaining money she…
Q. I am covered under CSRS as a court reporter in the federal court. I have also paid more than the minimum Social Security taxes on my transcripts earnings over my entire career of 37 years and thus am not subject to offset. When I retire, I will elect to have my spouse receive the maximum 55 percent of my CSRS pension if I predecease her. 1) Is the survivor annuity premium still deducted from her benefit upon my death? Is her 55 percent benefit calculated upon my entire CSRS pension amount, or is the survivor annuity amount first deducted? 2) Since she…
Q. I’m medically retired from the Air Force with more than 10 years on active duty. I was retired on disability, not on longevity. I have over 24 years in civil service. I’d like to be able to use those years to add to my service years. I’ve been told I can, but if I did I’d have to waive my disability retirement when I retire from civil service, which I would not like to do as it’s all tax-free. I entered service before 1978. So, can I use the years and still keep my disability retirement pay? A. What…
Q. I am a federal employee under FERS. I was a police officer for 21 years (I receive a pension) and did not pay into Social Security, except for a few years when I worked part-time jobs and made the “substantial earnings limit.” I was hired as a federal worker in 1995 and have 22 years of “substantial earnings” toward Social Security. I am now 64 and planning to retire, except I can’t figure out how much, if any, I will receive in Social Security. I went to a FERS retirement conference last summer, and it was my understanding that the maximum reduction from…