Q. I am older than age 50 with 20 years of federal service. I fall under FERS. If I’m offered an early-out and I accept and then turn around and take another federal position, what are the ramifications? If I’m given a Voluntary Separation Incentive Pay for leaving, I realize that I will have to pay that back before starting my job. Will I be able to collect that if I hold another federal job, or does that discontinue once I start the federal job? A. Your annuity would stop and you’d just be a regular employee. You wouldn’t be able to retire…
Browsing: VSIP
Q. Will VSIP income, upon retirement, count toward credits earned for Social Security eligibility? I served in the military for four years in the early 1970s. I never bought that service time back. I have earned only 30 Social Security credits and thus won’t be eligible for Social Security benefits at age 62. I am 60 and federally employed with 42 years under CSRS. If I accept a VSIP ($25,000 gross) upon retirement before age 62, will that money count toward Social Security credits earned? If so, how many? And will the credits reduce my annuities at age 62, having…
Q. I am planning to retire Feb. 21, 2014. I will be 60 years old and will have completed 10 years and one month of service. I am prepared to take the permanent reduction for being under age 62. 1. If a Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay is offered at the time of my planned retirement, would I qualify for one or both? 2. I was told that if a VERA/VSIP is offered at the time of my retirement, I could approach my leadership and ask that the 10 percent reduction be waived. I believe this was because…
Q. I started employment with the Defense Department in September 1981 under CSRS. In 1995, I took advantage of a Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay because my organization was downsizing. I also took a refund on my retirement account, which I tried to invest in buying a home and lost it. I was reinstated in the government in 2004 and came back as CSRS Offset. I also rolled my 401(k) from the job I had outside the government into the Thrift Savings Plan. I will be 65 on March 7, and was planning to retire in May. Because…
Q. I’m a civil service employee covered by FERS. My agency is offering Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay. I am 62 and receiving military retired pay. I’ve been told that I’m not eligible for either VERA or VSIP because I’m receiving military retired pay. Is that true? A. Not that I’m aware of. According to the Office of Personnel Management: Employees in the following categories are not eligible for VSIP. Employees who: 1. Are re-employed annuitants; 2. Have a disability such that the individual is or would be eligible for disability retirement; 3. Have received a decision notice…
Q. Is Voluntary Early Retirement Authority offered to those who are already eligible to retire? Does VERA apply to your high-three calculation for retirement? A. It’s clear from your questions that you are asking about the Voluntary Separation Incentive Payment, not VERA. According to OPM, “The Voluntary Separation Incentive Payment Authority, also known as buyout authority, allows agencies that are downsizing or restructuring to offer employees lump-sum payments up to $25,000 as an incentive to voluntarily separate. When authorized by the Office of Personnel Management (OPM), an agency may offer VSIP to employees who are in surplus positions or have…
Q. I am 59 years old and will have 23 years of service under FERS with the federal government in January. If I decide to retire via Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay, will I take a penalty in my retirement pay? If so, at what percent would that be? Also, would I still receive the supplemental benefit if I leave? In filling out the form for VERA/VSIP, would I select the VSIP or VERA? Would I be eligible for the VSIP? A. If you were to accept an offer of early retirement, you wouldn’t be subject to the…
Q. I am a federal law enforcement officer with more than 30 years of CSRS service. I do not have 20 years of federal law enforcement coverage, a main reason I remain on duty. Would I be eligible for VERA or VSIP, and by participating, would I receive the 18 months I need to attain 20 years in a covered position? Twenty years of law enforcement coverage computes to 50 percent of my high-3 plus the remaining years. I need 18 months of additional law enforcement time on duty to be eligible for a law enforcement retirement calculation. Does VERA…
Q. I’m a CSRS employee with 34 years of service, but I am only 54. Thus I am not eligible for optional retirement. My agency has been talking about a possible VERA/VSIP, which would probably require leaving by the end of December at the latest. I would still be about six months too young for a normal optional retirement. I am fully aware of the 2 percent per year penalty for taking a VERA at 55. Is that penalty always rounded up to the full year, or at just six months early, would it be pro-rated to 1 percent? While…
Q. I am a Postal Service employee under FERS. I’m 65 years and three months old. I’ll have 26 service years by Nov. 8. I work four hours a day because of a job-related injury. The other four hours are paid by the Office of Workers’ Compensation Programs. Will my work status allow me to qualify for the Voluntary Early Retirement Authority this year? If so, can I apply for disability retirement instead of the regular retirement and still get the $15,000 incentive? What happens with my accumulated sick leave? Can it be credited as added service if I submit…