By Mike Miles
July 9th, 2012 | Uncategorized
Q. When the Philadelphia Naval Shipyard closed in 1995, I withdrew all $29,000 of my CSRS money. I had 16 years of service time at the shipyard. After years of working in the private sector, I have now worked six years (two temporary, four permanent) for the government under FERS. I was told I would have to pay back $61,000 or I would owe $35 a month when I retired (to keep my health insurance.) I do not have $61,000. I have $31,000 in my Thrift Savings Plan account. I am 64 years old and my body is worn out due to my profession (pipe fitter). Is there any way I could not be penalized for withdrawing that money, or is there any way I can use my TSP money to partially pay it back without being further penalized?
A. You may withdraw your TSP money, for any purpose you wish, without penalty.