Q. I work for a federal agency that has offered a VERA/VSIP. I have 31 years of civilian service under CSRS, and I’ll be 53 years old on July 12. Employees who accept the buyout offer are to be off the agency payroll by June 2012. I’ve applied for the offer, but I’ve only been enrolled in the health insurance program for 2½ years. I’ve also discovered that the estimated annuity calculated through Employee Benefits Information System is not accurate because it is based on working 40 hours a week for 31 years (I was part time for 17 years,…
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Q. If someone was to apply for the VSIP (because they are not eligible for VERA) and separates, would they be eligible for some type of priority status for placement with another organization/agency/ etc? An example of what I am thinking about would be BRAC/RIF/ICAP. A. No
Q. I am 58 with 20 years of service. In January of this year, I transferred from a permanent employee to temporary. I was told at first that I was eligible for the early retirement/buyout program. Later, I was told I was not because I am now a temporary employee. This doesn’t seem right. I’ve put in my time. I have the age. I’d like to know if perhaps I really am eligible for the early retirement and buyout. A. No, you aren’t eligible. Because you are in a temporary position, you fail the first criterion to receive a voluntary separation…
Q. I am a Civil Service Retirement System federal employee who is considering taking the Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay offered if I am approved. Are you taxed at a higher percentage rate on the $25,000 than you are taxed on your regular salary? According to the tax bracket table, my salary is taxed at 25 percent or 28 percent. A. Buyout incentives are taxed as ordinary income, just like your wages.
Q. I saw a recent post in which you correctly stated that an employee is not eligible for a VSIP if he previously received a VSIP. The OPM regulations do not appear to allow an exception to this rule even if an employee repaid the full amount of the VSIP because of a return to federal service. Am I reading the regulation correctly or is there an exception to the general rule that I could not find? A. No, there isn’t.
Q. I’m thinking of retiring in 2012 with 39 years of service under CSRS and I will be 60 years old. If offered a Voluntary Separation Incentive Payment, would I be eligible for the buyout? A. Yes
Q. My agency has offered an early out (Voluntary Early Retirement Authority) but no buyout. Now we are hearing that a buyout is coming early in fiscal 2012. If I am approved for VERA, I will have until my retirement effective date to accept or decline. If a buyout (Voluntary Separation Incentive Payment) was offered prior to my retirement date, could I apply for it without losing my already approved VERA and still retire under the early out if not approved for the buyout? A. As a rule, VERAs are offered to a wider audience that are VSIPs, which are…
Q: I work at Kirtland Air Force base, N.M. A Voluntary Separation Incentive Pay/Voluntary Early Retirement Authority survey was sent out in May with a suspense date of May 21 to show interest. I completed the survey and received confirmation that it was received. The VSIP/VERA is scheduled for fiscal year 2011/2012. It’s been more than a month and I haven’t heard anything. I’d like to know for planning purposes; I am a Civil Service Retirement System employee with 33 years’ experience. Are you aware of any details or rulings? A: We haven’t heard a thing.
Q: What is the status of VERA/VSIP being offered in September and December 2011? Has it been approved? When will we know if we are eligible to receive the incentive and retire? A: We haven’t heard a thing. Nor are we likely to hear anything before you do.
Q: I am contemplating retiring under a Voluntary Early Retirement Authority (VERA)/Voluntary Separation Incentive Payment (VSIP) authorization that expires Sep. 30, 2011. I realize I will take a two year, one month penalty. My question is, as a CSRS retiree, if I return to employment outside of the federal government, what is the maximum percentage of earnings I can make without affecting my annuity? A: Whether you get a job in or out of the federal government, there wouldn’t be any limit on the amount of money you can earn after you retire. However, if you returned to work for…