Browsing: FEGLI

Q. 1) What are all the deductions that are taken out of a federal employee’s check when they retire? 2) Do these reductions stay at the same amount prior to retirement? 3) I have 33 years of service at age 51. I know there is a 2 percent penalty for each year under 55, but what about the three years I worked over 30? What happens to those? A. 1) Federal income tax; and, depending on your situation, state tax, FEHB, FEGLI and FEDVIP premiums, savings account deductions and allotments to organizations to which you belong. If you are receiving…

Q. I am 48 with 25 years of federal service under FERS. I am considering my options and was wondering what would be the ramifications of leaving government service by resignation or early retirement, if available. A. If your agency offered you an opportunity to retire early, you could do that. If it didn’t, you couldn’t. With early retirement, you’d receive an annuity computed as follows: 0.01 x your high-3 x your years and full months of service. You wouldn’t be eligible for the special retirement supplement until you reached your minimum retirement age (56) and your first cost-of-living adjustment…

Q. I am 48 with 25 years of federal service under FERS. I am considering my options and was wondering what would be the ramifications of leaving government service by resignation or early retirement, if available. A. If your agency offered you an opportunity to retire early, you could do that. If it didn’t, you couldn’t. With early retirement, you’d receive an annuity computed as follows: 0.01 x your high-3 x your years and full months of service. You wouldn’t be eligible for the special retirement supplement until you reached your minimum retirement age (56) and your first cost-of-living adjustment…

Q. I have 28 years of service at 56½ years of age. My MRA is 56. If I defer/postpone my retirement, at what age can I collect without any penalties? Also, would I be eligible for the special retirement supplement at that time? A. If you retired under the MRA+10 provision, you could postpone the receipt of your annuity to age 60 and avoid the age penalty. However, you wouldn’t be eligible for the special retirement supplement. Although you could resign from the government and apply for a deferred annuity at age 60, doing so wouldn’t gain you anything. But…

Q. I’m a 67-year-old distribution/sales and service clerk. I will have 13 years of service by November. Does this mean I can’t take the retirement incentive? And exactly what do they mean when they say “resign”? Would I be losing any benefits if I resign instead of retire? A. Resigning would make no sense. Any 62-year-old employee with at least five years of service can retire on an immediate annuity. Therefore, if you were to accept a buyout, you could retire at the same time. If you had been enrolled in the Federal Employees Health Benefits plan and Federal Employees…

Q. I have eight years of federal service as a FERS employee and believe I qualify for a deferred annuity at age 62. Would I be eligible for a VSIP (if offered), and if I were to accept a VSIP to leave; would this affect my annuity beginning at age 62; and if so, how? A. Yes, you’d be eligible for a VSIP. And you’d be eligible for a deferred annuity at age 62. The annuity would be calculated using the standard formula: 0.01 x your high-3 on the day you left x your years and full months of service…

Q. If I take deferred retirement after MRA but before 62, can I re-enroll in my BC/BS plan (that I have participated in for more than five years) later? Does that date have a time limit? I ask in light of this: “If you separated from federal service after reaching the Minimum Retirement Age with at least 10 years of service but postponed the commencing date of your annuity to reduce or avoid the age reduction, you are eligible to re-enroll in the Federal Employees Health Benefits program and the Federal Employees’ Group Life Insurance program if you participated in…

Q. I am a 59-year-old Army civilian and have 30 years of service as of early August. I had left government service and did not withdraw my contributions from CSRS. I came back to the government after a more-than-five-year absence in the private sector. Hence the CSRS Offset status. Instead of retiring, could I resign and apply for my retirement at a latter age, say 62 or later? Between now and that time, I would be working in the private sector again contributing to Social Security. I still do not understand why the CSRS pension is reduced by Social Security…

Q. In April, I will have completed 20 years of federal employment. I will be only 55 and will not have met the MRA, 56. I was told at a retirement seminar that I could still separate (at 55) and wait to apply for the postponed retirement when I reach MRA. Is this correct, or would this be a deferred retirement and would I lose my ability to renew my health and life benefits options when I reach 60? A. Because you have at least 20 years of service, if you left before being eligible to retire, you could apply…

Q. I am covered by FEGLI. I’m unable to determine if I would be covered in the case of death resulting from flying as an instrument rated private pilot for recreation. Would I be covered? If not, would this change if I were flying under approved TDY orders? A. You’d be covered by your Federal Employees’ Group Life Insurance policy regardless of whether you died or sustained bodily injuries while flying for your own pleasure or while on government business.