Q. I’m a 56-year-old federal firefighter under FERS. I’m looking at retiring this month and wanted to know if I get penalized for making another income outside of my retirement? From what I understand, I can only make $14,000 before I get penalized.
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Q. I’m a FERS employee planning to retire under the MRA+10 provision with postponed benefits. I am over my mandatory retirement age with more than 15 years of creditable service. Earlier posts on the same subject state you would have to resign in order to postpone and lose all sick leave credits. However, I also read that you should retire under immediate retirement, postpone receiving the benefits so that sick leave will be counted toward your service computation, and never resign. Can I retire under the MRA+10 provision and then postpone receiving the benefits? What paperwork needs to completed?
Q. I am 58 and was RIF’d in August 1996. I started work in 1988 and also have four years military service; however, I didn’t make a deposit to get credit for it. Can I do that now? Is it possible for me to apply for a FERS retirement this year? A. No, you can’t make a deposit now. Only employees can make a deposit. Since you only have 8 years of creditable service, you won’t be eligible for a deferred annuity until you reach age 62. That’s assuming that you didn’t ask for a refund of your retirement contributions…
Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com, and view his blog at retirement.federaltimes.com. I’ll start the new year with a summary of benefit changes to federal pay, cost-of-living adjustments and Social Security benefits. In my next column, I’ll do the same for Medicare, death benefits, and children’s benefits. Pay increases If you are a federal employee, the good news is that you’ll receive a 1-percent pay increase. It ain’t much, but it’s at least as good as what you got last year. And it’s a lot…
Q. When I started in August of 1984, I was placed under FERS even though FERS wasn’t put in place until 1987. I read that if you didn’t pay into FERS then that time didn’t count. I don’t remember if any deductions were taken toward my retirement during those years. Does my time from 1984-1987 count toward my creditable service?
Q. I am an ATC FERS Front Line Manager who will retire in the next couple of years with 26 years of service. Will I be paid out for accrued sick leave and annual leave? A. You’ll receive a lump-sum payment for your annual leave. Your unused sick leave will be added to your actual service and, if there’s enough of it, used in the computation of your annuity.
Q. I retire under FERS at age 60. When I reach 62, how does this affect my offset? Do I have the option to continue offset until age 67 or will I automatically start drawing Social Security at age 62? A. What you are referring to is the special retirement supplement. The SRS approximates the amount of Social Security benefit you earned while a FERS employee. It ends at age 62 when you first become eligible for a Social Security benefit. It’s entirely up to you when you apply for that benefit.
Q. Is there any way for me to opt out of the Basic Benefit offered in FERS? I just started as a GS employee. I did not realize that the Basic Plan will require me to contribute 4.4 percent of my income to a retirement plan that pays 1 percent per year served. Please check my math. Does that mean I will have to draw retirement for a minimum of 4.4 years before I break even on these payments? That is without considering any growth rate on these funds.
Q. I worked for the post office for 12 years (1988-2000). I resigned and now work in law enforcement. When I retire from my job at age 55, will I receive a retirement check from the post office as well for the years I worked there? A. If you didn’t ask for a refund of your retirement contributions when you left, you’d be entitled to a deferred FERS annuity at age 62.
Q. Is there any way for me to opt out of the Basic Benefit offered in FERS? I just started at work today as a GS employee. I did not realize that the Basic Plan will require me to contribute 4.4 percent of my income to a retirement plan that pays 1 percent per year served. Please check my math. Does that mean I will have to draw retirement for a minimum of 4.4 years before I break even on these payments? That is without considering any growth rate on these funds.