Q. I worked as a WG-10 for the Air Force from November 1985 to July 2000, after fours years of active duty. I already rolled over my Thrift Savings Plan 401(k). I was under the Federal Employees Retirement System, but I remember contributing a small amount each pay period toward retirement. Where can I find out what benefits I will receive and when I am eligible to collect? A. Assuming that you didn’t get a refund of your retirement contributions, at age 62 you could apply for a deferred annuity. It would be computed using the following formula: 0.01 x…
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Q. I am a Civil Service Retirement System employee planning to retire Dec. 31. I will receive a lump-sum payment for unused annual leave in 2012. I understand that this payment will be subject to federal and state (where applicable) taxes but that other deductions (health care, retirement and Thrift Savings Plan contributions) are not taken. Do I have the option to have a Social Security contribution taken from this payment? (I need seven credits to get to 40 credits/[quarters]) and this would seemingly represent an opportunity to acquire four of them if it is an available option). Is there…
Q. I am a Federal Employees Retirement System employee and plan to retire at my minimum retirement age (56), with 31 years of service (July 2016). It is my understanding that my retirement income would consist of three components: pension, Thrift Savings Plan annuity, and Social Security supplement, until age 62. I also know that the SSS is subject to the minimum earnings test. However, the pension portion of my retirement will not be subject to the minimum earnings test. Will my TSP annuity be subject to the earnings test? If so, what options do I have to allow me to receive the SSS until…
Q. Does a federal employee who was fired get to retain FERS defined benefit plan annuity and government contribution of TSP? Does it matter if the employee is fired for performance or conduct issue? A: Any employee who is fired, whether for performance or conduct, usually retains any entitlements he or she has earned up to that point in time. For example, if eligible for immediate retirement, the employee may retire. If the employee isn’t currently eligible but has the correct number of years of service, he or she can apply for a deferred annuity at a later date. However, if…
Q: I have approx 10.2 years of active military service. I relocated and worked approximately two years with the U.S. Postal Service and now I am working as a civil service employee for the Defense Department. Am I able to combine these together to put toward retirement? If so, would I need to make a deposit of 3 percent of my basic pay? Which basic pay do I use ( military and postal)? I started my civil service job last year at age 51. How many years will I need to work in order to retire? And if I work…
Q: I read on Fed Weekly that some congressional discussions occurred on the subject of allowing federal workers to transfer all or part of their unused sick and annual leave into their Thrift Savings Plan accounts. Are there any discussions on this topic and if so, do you know the status and if and when this would be implemented? A: While there may have been discussions, none of them have resulted in a legislative proposal being introduced in either chamber of Congress.
Q: I left federal service in 1998 and left my thrift in place. It is up to $80,000. I am married with five children and my husband and I file joint returns. He is in federal service and I stay at home. Our credit card debt has become staggering and I would like to withdraw all my funds, which after considering the 20 percent withheld by thrift and 10 percent penalty, I would have about $56,000, which would be more than enough to wipe our credit card debt slate clean. What else should I take into account before making this…
Q: I understand Congress has a bill to allow federal employees, upon retirement, the ability to roll our unused annual leave into the Thrift Savings Plan. Has this been decided upon as of yet? A: No.
Q: For those covered under the law enforcement provision of the Federal Employees Retirement System, is the Social Security earnings test applied toward funds received from their Thrift Savings Plan if those amounts exceed the earnings test for the special law enforcement officer/firefighter Social Security supplement after their minimum retirement age? A: No. The Social Security earnings test only applies to earnings from wages or self-employment.
Q: My wife died 13 years ago. How do I assign my survivor benefits to my common-law wife? A: You can submit new designation-of-beneficiary forms: SF 2823 for Federal Employees Group Life Insurance; SF 2808 for the Civil Service Retirement System or SF 3102 for the Federal Employees Retirement System survivor annuity; and TSP-3 for your Thrift Savings Plan investments (available on the TSP website). Some of these benefits may only be available in a state that recognizes common-law marriages. Check with an attorney to make sure that your state is one of them.