Browsing: first year

Q. I am a FERS employee with 23+ years of federal service and 62 years old. My agency is offering Voluntary Separation Incentive Pay to eligible employees, including those who are retirement-eligible. Would the incentive reduce the amount of Social Security I can draw this year? A. VSIPs are considered earned income. To find out if accepting one would affect your Social Security benefit, go to www.socialsecurity.gov/retire2/rule.htm and see how the “first year rule” would apply to your situation.

Q. In 2012, what were the limitations for self-employment income for the first year of retirement, which was also the first year I received Social Security benefits? A. You’ll find what you’re looking for at www.socialsecurity.gov/retire2/rule.htm.

Q. I retired after more than 30 years of service (FERS) and started receiving the special retirement supplement and my annuity as expected. I went to work and exceeded the earnings test so SRS went away. I will be out of my job shortly and would like to receive SRS again until I am eligible for full payments when I turn 62 in February 2014. I am assuming I can start this up again. Yes? What would the effective date be (date unemployed, one month later, etc.)? I also expect that if it starts again, it would not fall under…

Q. I am planning to retire this year at age 60 with 29.7 years of service under FERS. I understand that I will receive the annuity plus special retirement supplement. However, as a widow, I am also allowed to receive my husband’s Social Security payment at age 60. Does this reduce the special retirement supplement? Also, does the special retirement supplement act as earned income under the Social Security earnings test? Finally, does the check you receive after you retire for annual leave count as earned income under the Social Security earnings test? A. Only earnings from wages and self-employment…

Q. I understand that if you exceed the special retirement supplement earnings limit for the year you retire, you will not be eligible for the special retirement supplement for the rest of that year. Is this correct? I will be eligible to retire Jan. 22, 2015. I would like to carry into the 2015 year 240 hours of annual leave. There are two pay days in 2015 prior to Jan. 22. Most likely, the lump-sum payment for 240 hours of annual leave and January wage earnings will exceed the special retirement supplement earnings limit for 2015. If I put all…

Q. I’m a federal employee with 22 years’ service, GS-15, turning 60 this month, in FERS, and deciding whether to retire Dec. 29, 2012, or Jan. 12, 2013. I understand I will be paid a lump sum for my leave over and above 240 hours in either case (I expect to have an additional 200 or so), but I’m concerned about two Social Security issues: Since my lump-sum payment will exceed the earnings limit for the retirement supplemental, will that payment after Jan. 1 reduce my supplemental SS payment in 2013? Will Social Security taxes be taken out of my…

Q. I am under FERS. I turn 65 on Nov. 20 and will have completed 12 years and one month as a federal civilian. My service computation date is Oct. 10, 2000. Is it possible for me to retire effective Nov. 28, or do I have to wait until the end of the pay period? I will have over 300 hours of annual leave to sell back on Nov. 28.  Because my hourly pay is $69, will that $20,700 affect the annual limit from Social Security limit in 2013?  I will be applying for Social Security starting on my 65th…

Q: I plan to retire in June 2011 on my 62nd birthday. If I work up until that date and make approximately $20,000 will my Social Security benefits be reduced? A: The Social Security Administration has a special “first year” rule that lets them pay a full Social Security check for any whole month they consider you retired, regardless of your yearly earnings. In other words, the pay you received before retiring won’t count against the earnings limit. Note: In 2010, if you are below full retirement age, you are considered retired in any month that your earnings are $1,180…