FERs annuity supplement

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Q. I read this statement: “Eliminate the FERS annuity supplement for eligible employees retiring 2018 and beyond.” Does this refer to fiscal 2018, starting in October 2017; or calendar year 2018, starting in January 2018?

A. If this were to become law, it would apply to all employees retiring after Dec. 31, 2017.

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

23 Comments

  1. Lori Kunellis on

    I felt so much better after reading your response to the question above. Then I ran across an article today in Government Executive at http://www.govexec.com/pay-benefits/2017/07/house-gop-takes-cue-trump-targets-federal-retirement/139532/?oref=govexec_breaking_alert said that “Trump planned to increase employee retirement contributions by 1 percentage point annually for six years and do away with annuity payments for everyone retiring after Oct. 1, 2017”. I am planning on retiring on December 29, but could leave September 30 only if absolutely necessary. How can one know for sure which date (Oct 1 or Jan 1) would be the actual effective date for this change?

    • You can’t know for sure. However, there’s a yawning gap between what presidents propose and what eventually happens. If such a change were to become law, you’d know it in time to retire before it became effective.

    • Keep this in mind if your last day of work is September 30th than your first day of FERS retirement is October 1, 2017 and if you retire December 29, 2017 your first day of FERS retirement is January 1, 2018. Remember Reg answered ” If this were to become law, it would apply to all employees retiring after Dec. 31, 2017″

  2. Jimmy, your comments only further confuse me. The change, should it happen, would affect those retiring ON or AFTER October 1 2017 or ON or AFTER January 1, 2018, so, if my retirement date is September 30, 2017 or December 29, 2017 before the change takes effect, it won’t affect me. Thank you.

      • Thank you for all of your responses. Your knowledge and honesty on all topics of importance to federal employees is appreciated.

        • Lori, have you decided when you’re walking away? This has definitely gave me the answers I’ve been looking for.

          • Hi Steve. My 5-year plan has been to retire on December 29 at 56 with 32 years, 10 months of service. However, if this mess were to pass and be effective Oct 1, I would no doubt retire on September 30. With the severe understaffing and mounting workloads, I honestly don’t think I could handle the stress for another 6 years. It’s just not in my DNA.

            If you’re Firefighter Steve (below), thank you for your service. Just my 2-cents though on your comment about when to leave. If you wait until Jan 8 to retire, you won’t get an annuity check until March. If you leave by December 31, while you would not earn annual or sick that pay period, and would lose one week’s pay, you would at least get your first annuity check in February. Difficult decision. Good luck in your retirement!

      • Reg, I would like to clear up for myself and others the actual retirement date. Under FERS, regardless which day I choose to be my last work day, the 1st of the following month is my official retirement date. For example: December 29, 2017, my first day officially retired would be January 1, 2018. Is this correct?

  3. I’m a federal firefighter with 31 years on the job. I feel like I’m being forced out, and can’t afford to lose the supplemental. Just like Lori’s comment I’m concerned. If I wait until December to retire (last pay period ends I believe is January 8th) Anytime during that week before the pay period ends I will be ok?

    • Since no law has been passed that would set a time after which it would be effective, there’s no way to answer your question. Keep tuned in and, if the law were to pass – leave before it becomes effective.

      • I am exactly the same as Steve, firefighter 31 years on the job and I am 50 years old so
        I have the same questions. I have a question about the process of implementing the budget. So the way I understand it is that it passed yesterday. Now is it final as is or does it now have to be tweaked and adjusted? The SRS is a huge part of our retirement, if it is taken from us if we stay past 2018 probably 30% of my department will retire. I would imagine it will be the same in other areas as well. Just want t o be prepared.

  4. I retired as a federal firefighter in Jan 2012 and have been working as a fire Inspector for the state of Wis since and i am 56 years and after that i know i can only make 16920 dollars and keep srs i f i work 1 extra year i know i would lose my srs but if i do does my srs automaically reinstate after i work that extra year or do i lose my srs forever

    • If you exceeded the earnings limit in one year and were under age 62 when they fell below the limit in the following one, the SRS would be reinstated.

  5. Jeffrey Sewell on

    I don’t mean to kick a dead horse, but just so I understand this SRS, I am a retiring BOP employee, and I put in my retirement paperwork for a date of DEC 31, 2017, will I be OK with receiving my SRS, or should I move up my retirement date. I can go as soon as September 29, but was trying to get the max on my A/L payout.

    • You are asking me to predict the future, which I can’t do. You’ll just have to keep your eyes and ears open.

  6. Anthony Spadaccini on

    The “Fake Annuity Supplement”…. Never paid out; but offered to The Federal Work-Force. What Can be more Fake than that

    • What are you talking about? The special retirement supplement has been paid – and is still being paid – to tens of thousands of former FERS employees who retired on an immediate annuity before age 62 and haven’t had earnings from wages or self employment that exceeded the annual Social Security earnings limit.

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