Q. I am CSRS. I earned my 40 quarters before becoming a fed. I plan to retire May 2 at almost 65 years old. I am not going to apply for Social Security until 66. I will have almost 37 years of combined federal service. When I apply for Medicare Part A at 65, there will be no cost, correct? When I go on Social Security, there will be no cost for Medicare Part A, correct?
A. No, there won’t be any cost for Medicare Part A when you reach age 65. Not only did you pay for that benefit through your pre-federal employment, but you’ve been having FICA deductions taken from your pay since 1984.
Although you didn’t ask, I need to tell you that any Social Security benefit to which you’ll be entitled based on those 40 quarters will be subject to the windfall elimination provision. The WEP will reduce that benefit because you’ll have fewer than 30 years of substantial earnings under Social Security.