Q. I am a FERS employee and will reach my minimum retirement age, 56, soon. I am thinking of retiring and taking an immediate annuity to keep health benefits. If I went back to work for the federal government in two or three years, would the 5 percent-per-year penalty remain in force when I stopped work again, or is there a way to negate this penalty? Is it set in stone because those were the conditions under which I retired? Am I correct that this would not apply if I left under a Voluntary Early Retirement Authority, even though I would…
Browsing: VERA
Q. For early retirement before age 62, what are the requirements to qualify for the special retirement supplement? How is the SRS amount calculated? If I apply for the SRS, will it reduce my benefit when I apply for Social Security at age 62 or 67? A. If you retire under a Voluntary Early Retirement Authority or Voluntary Separation Incentive Pay, you would be entitled to receive the SRS when you reach your minimum retirement age. The SRS will continue until age 62, when you are eligible for a Social Security benefit, whether or not you apply for it. Receiving the SRS, which is…
Q. I am a FERS employee, age 54½, and I will have 20 years of service as an Army civilian later this month. My local human resources office sees no possibility of a Voluntary Early Retirement Authority. Once I hit 20 years of service, is my future annuity protected even if I leave service prior to my minimum retirement age of 56? What I’d prefer to do, if possible, is leave service and not begin collecting an annuity until I turn 60. Will that prevent me from having my annuity reduced as someone who would be under 62? And what…
Q. Both my spouse and I are federal employees and our Federal Employees Health Benefits coverage is under my name (self and family). If my spouse is approved for a Voluntary Early Retirement Authority, can we switch to have coverage under her name? She will have had coverage under my policy for five years, but it is not specifically under her name. I ask since that would give me the option to leave federal service at some point in the future and still have FEHB coverage under her policy? A. You could do that during the annual open season.
Q. I am considering taking the Voluntary Early Retirement Authority that has been offered to Postal Service mail handlers for Sept. 1. I am in FERS. Is there a cost-of-living adjustment? If so, when would I receive the increase and at what percentage? A. As a rule, FERS retirees don’t receive cost-of-living adjustments until they reach age 62.
Q. I’m a postmaster who has been offered the buyout if I retire July 31. At that time, I will have 26 years and 10 months of Postal Service time. I also have four years of military time that I have bought back, plus seven months of sick leave time. My total creditable service time is 31 years and six months. Under VERA, I would be eligible for the special supplement. but because I’m already eligible to retire, I must retire that way. Would I still receive the special supplement? I won’t turn 60 until Oct. 17. A. Because you…
Q. I am 54 years old with 31 years of service. My wife is terminally ill and has only about two years left at best, and I want to retire. I know that I have qualified for my retirement annuity, but do I also qualify for the Social Security supplement bridge pay? Also, I am 18 months from my 56th birthday. Am I subject to the early retirement penalty? If so, how much? A. Unfortunately, you aren’t qualified for a retirement annuity. To qualify, you’d need to have reached your minimum retirement age. The only way you’d be able to…
Q. I am a FERS employee. My organization offered a VSIP/VERA. I applied for the buyout but was denied because this offer was good for the first 100 technicians only. The memo did not state that it was for the first 100 technicians. Can this be true? A. Sure, it can be true. An agency can limit its offer to the level needed to reach its organizational objectives. That limit can be set ahead of time or imposed when the staffing reduction goals have been met.
Q. I am a FERS employee with 26 years, four months service. I am 51 years, two months old. My place of work is experiencing a restructure/reorganization and is offering VERA/VSIP. Will I be able to get the special retirement supplement when I am at the minimum retirement age? I have a Thrift Savings Plan account and was looking at a lump sum from that. A. Yes, you will be eligible to receive the special retirement supplement when you reach your MRA.
Q. I am a postal worker who started my 25th year of service in May. I am buying back my military time of six years and will have it paid at the end of this year. I will be 49 this year. Since my minimum retirement age is 56, is there any chance of receiving the Social Security supplement between 50 and 55 if I retired under a Voluntary Early Retirement Authority? Must I be 56 regardless of the number of years of service to receive it? When I pay off my military time later this year, how is the…