Voluntary early out


Q. The U.S. Postal Service has given employees retiring voluntarily on Oct. 31, 2009 an amount of $15,000. Will the first check of $10,000 have everything taken out for federal and state taxes, Medicare, Social Security, health benefits, etc? When would my first annuity check start? I am a Civil Service offset employee with 12 years under FERS. I had a total of 30 years of both civil service and FERS but I left and came back to the USPS in 1997 (7 years). I took out the money in the retirement fund and so lost 20 years credit to use for seniority purposes, I think. Do I have to wait until I am 62 years to start collecting Social Security? I was born in 1956, so my MRA is 56.

A. All federal payments, including taxes, Medicare and Social Security, will be deducted from each payment. Other payments, such as health benefits, will not. As a FERS employee, you will be eligible to receive the special retirement supplement when you reach your MRA. It will continue until age 62 when you will be eligible for a Social Security benefit. Whether you apply for one at that time is up to you. If you retired on Oct. 31, you would have been on the annuity roll on Nov. 1.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

Leave A Reply