Q. I worked in high school and through college paying into Social Security and earned 28 quarters. From 1974 to 2009, I worked under CSRS and paid no Social Security. Upon retirement, I collected my monthly annuity from CSRS, then started working in private sector and will get my 40 quarters in January. I turned 62 in October. How is the reduction computed for my monthly Social Security payments? My monthly retirement is around $6,500 from CSRS. A. Your Social Security benefit will be affected by the windfall elimination provision. The WEP reduces the benefit of anyone who is receiving…
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Q. I retired from civil service March 31 after 45 years and nine months under CSRS. Before that, I served three years in the military (1962-65), and other private industry jobs throughout the years went to Social Security to earn 40 quarters. At age 65, I started drawing a Social Security pension. Now, Social Security says it is reducing that check by half and I have to repay half of what was paid to me since April 1 unless I can prove it was not my fault I received the money. What? This all because I retired and started drawing…
Q. I have 33 years in and am under CSRS. I will be 60 years old in May. I served less than two years in the Army in my 20s. I am a WG-8 making almost $25 an hour. I receive correspondence statements from Social Security that if I retire at age 62, I would be eligible for approximately $300 based on a second job 12 years ago and jobs before joining the government in the 1980s. 1. Should I buy back the time I have in the Army? 2. Will the buyback help increase my Social Security? Or will…
Q. I retired on an early-out offer on Dec. 31, 2011, with 29.5 years of service at age 52. As a self-employed individual, I am paying both the employer and employee share (slightly reduced) to Social Security. Assuming another 15 years of work, that’s a tremendous amount to be paying into a retirement system with little or no benefit. I also have quarters from pre-CSRS employment. What, if any, Social Security benefit can I receive down the road? A. At age 62, you’ll be eligible for a Social Security benefit. Whether or not you apply for it at that time…
Q. I am 47 years old and worked for the post office for three years. During that time, I bought back my military service time of eight years. Am I eligible to someday get that retirement for the 11 years? If not, will I be reimbursed what it cost to buy back my time? Is the Thrift Savings Plan a separate entity, and when can I start receiving that? I’m currently working away from the federal realm. A. Reg: No, you wouldn’t be eligible for an annuity because you didn’t have at least five years of actual civilian service. If…
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. When I retire under FERS, can I get all of my Thrift Savings Plan monies, Social Security and my annuity? Can I roll over my TSP monies without paying 30 percent of the total to the Internal Revenue Service? If so, what amount of tax-deferred monies, once rolled over, can I take out monthly without a penalty or have to pay taxes? A. Reg: Yes, you can receive an annuity and, unless you retire under the MRA+10 provision, the special retirement supplement, when you reach your minimum retirement age. Unless you exceed the Social Security earnings limit from wages…
Q. When I retire Dec. 29 and receive a check for my unused annual leave in 2013, will those funds be taxable in 2012 or 2013? A. It will be taxable in the year it is received.
Q. If I take the $15,000 retirement incentive being offered now, (I have 25 years under FERS, am a Postal Service employee, and am 64 years old), will my Blue Cross premiums go up? If so, by how much? I now pay $81.68 a month. Also, if I decide to get married, my family option now would be $203.61 a month. How much would these premiums be if I take the retirement incentive? I must make the decision by Dec. 3. Is the FERS pension amount taxed? If so, is it taxed by income and Federal Insurance Contributions Act? My…
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…