By Reg Jones
Service toward retirement
November 19th, 2010 | Uncategorized
Q: I worked for the U.S. Postal Service for 13 years, from November 1986 to November 1999 as a FERS employee. When I left the service, I did not pull any funds from my FERS account. I was rehired by the federal government in September 2010. I was born in 1963, and I’m currently 47 years old. My question is, what is my earliest eligible retirement age and will all of my government service be considered when I do retire? I’d like to work another seven years, but no more than 12 years.
A: Because you didn’t take a refund of your retirement contributions, all that time will be included in determining your total years of service and in your annuity computation. The earliest that you could retire is when you reach your minimum retirement age, which is 56. At that point you could retire under the MRA+10 provision (minimum retirement age with at least 10 years of service but fewer than 30). However, your annuity would be reduced by 5 percent for every year you were under age 62. You could, of course, retire and postpone the receipt of your annuity to a later date to reduce or eliminate the age penalty. On the other hand, if you wanted to retire on an immediate, unreduced annuity, you would have to work until you reach age 60. By that time you’d have more than enough service to retire under the 60 + 20 provision.
Tags: annuity, FERS, minimum retirement age
Retired and rehired excepted service
November 18th, 2010 | Uncategorized
Q: I retired as a federal law enforcement officer (Series 1811, Treasury IRS Criminal Investigations) during 2010, and accepted a federal excepted service, law enforcement position with Department of Defense’s Inspector General the very next day. Do I have to worry about cashing out my annual leave (approximately 350 hours) with Treasury? Do I need a break in service equal to the annual leave time before I begin/began work with DoD, before the annual leave is cashed out? Both HR departments did not mention any such treatment of annual leave. An employee in my similar situation advised that I may have to pay the annual leave cash out back because I’m continuing federal service without a break, and that my annual leave would have to be transferred to DoD. Another employee, who is a co-worker, retired from the FBI and accepted the same position as I did with DoD. He cashed out last year and had no problems. Is there a difference in which federal agency you retire from (the first employee, who offered the warning worked as a Series 1811 with NCIS)? Any recommendations would be appreciated.
A: Because unused annual leave is projected forward as if you were still on the rolls, you are required to repay any money you received for hours that fall on days after you return to work for the government. Because you began working the day after you retired, you must repay the entire amount, plus accrued interest.
Tags: annual leave, law enforcement, re-employment, retired
Military service retirement plus civilian retirement
November 17th, 2010 | Uncategorized
Q: I served for 27 years in the Navy and so earned retirement annuity. After a few years in the private sector, I was hired under the National Security Personnel System on August 4, 2008. At the time of my hire they awarded me partial credit for military service and gave me the service commencement date of July 4, 1992. In was born in 1955. The FERS retirement calculator says that I would therefore be retirement eligible as soon as July 4, 2012. Should I elect to retire at his point or a date after that, will I earn both retirements in full? If not, what will be offered when I retire from the civilian DOD position?
A: Some retired members of the armed forces may receive credit for certain periods of active duty service in determining their leave accumulation rate, which is reflected in their service computation date. However, that time isn’t generally creditable for retirement purposes unless a deposit is made to the civilian retirement system and, at retirement, the retired military pay is waived. If you didn’t do that, you’d be able to keep your military retired pay. Then in 2012 when you reach your minimum retirement age (56) and have 20 years of FERS service, you could retire under the MRA+10 provision (minimum retirement age with at least 10 years of service but fewer than 30). Your FERS annuity would be reduced by 5 percent for every year you are under age 62, unless you retired and postponed the receipt of your annuity to a later date.
Tags: annuity, FERS, military service, minimum retirement age
Discontinued service retirement
November 17th, 2010 | Uncategorized
Q: I have been affected by the National Reassessment Process by the Postal Service. I was sent home and told there is no longer work available for me within my restrictions after being accommodated for the past 11 years. Would I be eligible for discontinued service retirement, and how would I go about getting it? By the way, I am two months from turning 56 years old and I have 25+ years of service as a FERS employee.
A: You would only be eligible for discontinued service retirement if your agency sends you an official notice of intent to separate you.
Break in service vs. annual leave payout
November 17th, 2010 | Uncategorized
Q: I will be retiring under CSRS and plan on returning as a rehired annuitant under the National Defense Authorization Act hiring authority for the part-time re-employment of civilian retirees. What is the minimum break in service necessary to obtain a payout for unused annual leave?
A: You misunderstand how the process works. When you retire, your unused annual leave will be projected forward as if you were still on the payroll. When you return to work for the government, you will have to repay any part of the lump-sum annual leave payment that overlaps with your period of re-employment. For example, if you received a payment for 30 days (240 hours) and went back to work after 7 days (56 hours), you’d have to refund 23 days (184 hours) of the money you received.
Tags: annual leave, CSRS, re-employment
Surviving spouse annuity
November 16th, 2010 | Uncategorized
Q: I am the surviving spouse of a federal employee and have been receiving an annuity since the death of my husband in 1993. My question is whether my annuity will continue if I marry again. I am well over the age of 55. I cannot seem to find the answer to this on the official website.
A: Because you are age 55 or older, if you remarry your annuity will continue.
Tags: remarriage, survivor annuity
Retirement Equity Assurance Act of 2009
November 16th, 2010 | Uncategorized
Q: I have been retired from CSRS for five years. I just saw some briefing slides on “Non-Foreign Area Retirement Equity Assurance Act of 2009.” It mentioned phasing in locality pay over three years (2011-2012). I am a math analyst, and I like taxes, but still can’t understand the slides. Looks like an advantage, but I’m still trying to understand. Please help explain this.
A: The purpose of the act is to phase in the conversion of non-foreign area cost-of-living adjustments — which aren’t included in the computation of an annuity — to locality pay, which is included.
Tags: CSRS, locality pay, Retirement Equity Assurance Act of 2009
Retirement computation
November 16th, 2010 | Uncategorized
Q: I started at the Bureau of Land Management July 19, 2009, with no previous federal experience, except U.S. Army. I retired from the Army (early retirement) with about 17 years and 6 months active duty and six years Reserve. I have been told that as I retired from the Army, I am not due more leave time; I need to start at the bottom. Some people say that my Army time should count toward years of service for more leave. Can you enlighten me?
A: For retired members of the armed forces, annual leave credit is only given for 1) actual service in a war declared by Congress or while participating in a campaign or expedition for which a campaign badge is authorized or 2) all service when retirement was based on a disability received as a direct result of armed conflict or caused by an instrumentality of war and incurred in the line of duty during a period of war as defined in 38 U.S.C. 101(11).
Switching health plans
November 16th, 2010 | Uncategorized
Q: My wife and I are both CSRS retirees. During our active careers and up to this point in our retirement she has been covered under my family health plan. Now that our youngest son is in the Air Force we want to switch to two single plans. Is that possible? Do we have to do it during open season?
A: Yes, you can switch to two self only enrollments, but the only time you can do it is during the annual open season.
Tags: CSRS, family health plan, HEALTH INSURANCE, self only plan
Lump-sum leave at retirement
November 16th, 2010 | Uncategorized
Q: If I retire at the beginning of January before the end of the current leave year, could I receive payment for 568 hours of unused annual leave — maximum carryover of 360 hours of unused annual leave from the previous year, plus my 208 hours of unused annual leave in the current year. I am allowed to carry over a maximum of 360 hours of accumulated annual leave from one leave year to the next.
A: Yes, you can. However, you’d have to retire no later than Jan. 1, 2011, which is the end of the current leave year.
Tags: annual leave, RETIREMENT