Q: I am a FERS employee who plans to retire Nov. 30 or Dec. 31 this year or Jan. 15, 2013. My Service Computation Date is May 15, 1982. Which one is the best date to retire? I will be 59 on Aug. 20. I also read an article about losing annuity supplement if it exceeds the maximum amount
of $14,160 annually (not my Social Security benefit unless I retire at 62).
A: I can’t advise you. What I can do is give you some facts that may help you make a decision. First, the 2012 leave year ends Jan. 12, 2013. If you retire after that date, any annual leave you have above the maximum carryover will be lost. Second, as a FERS employee, if you retire after the last day of any month, you won’t be on the annuity roll until the following month. For example, if you retired Jan. 12, you wouldn’t be on the annuity roll until February. Third, to receive a full cost-of-living adjustment in the year following your retirement, you’d need to be on the annuity roll in December. Any month you retired after that would result in your COLA being reduced by 1/12th.