By Reg Jones
Retirement and disability
March 31st, 2011 | Uncategorized
Q. I am a federal employee on the CSRS offset retirement system. If I retire with full benefits (age 55 with 30 years), and I become disabled later, will I be able to receive my full federal retirement annuity, and a disability check?
A. No.
Tags: CSRS, disability, RETIREMENT
Disability retirement
March 31st, 2011 | Uncategorized
Q. I recently applied for disability retirement. My package is done at Randolph AFMPC and is at the Defense Finance Accounting Service now. I am an Air Force civilian. I am 53, turning 54 in December. I have 21 years of service, with an SCD of March 18, 1990.
I just read on your site that if my disability is disapproved by OPM, that I will then get fired. Can this be true? It seems so unfair. I’m so afraid of getting fired, that I am considering canceling my application and just continuing to work through the pain. It’s a huge risk, isn’t it? Could you advise me any? Am I eligible to retire “normally” now?
A. If your application for disability retirement is turned down, but your agency subsequently determines that you can’t satisfactorily carry out the requirements of your job, they may try to find a vacant position you are able to perform and for which you are qualified. Failing that, they can separate you for unsatisfactory performance.
Tags: disability, retire
Supplemental requirements
March 31st, 2011 | Uncategorized
Q. I’m a 53 year old FERS employee with 25 years of service this June. I’m considering taking a VERA if one is offered in late March 2011. I know that a supplemental is offered as an incentive if you have the right requirements. I fall short of the age requirement. My question is, if I took the VERA that might be offered, would I still be able to get the supplement when I reach the MRA? If so, would it automatically be put into my pension at the time I reach my MRA or would I have to apply for it when I would be eligible ?
A. If you accept an offer of early retirement, you would be eligible to receive the special retirement supplement when you reach your MRA. It wold automatically be added to your regular annuity unless you have earnings from wages or self-employment that exceed the Social Security earnings limit.
Tags: MRA, special retirement supplement
Retired annuitant and sick leave
March 31st, 2011 | Uncategorized
Q. I retired under FERS in 2006. When I came back to work at DoD last July as a rehired annuitant, my sick leave that I had lost when I retired (900+ hours) was reinstated. But as an annuitant, I believe I have zero benefits (e.g., my retirement isn’t affected). So when I leave this July, would I only get paid for any accrued annual leave? Do I just lose my sick leave (again)?
A. Because you were hired under a provision that allowed you to keep both your full annuity and the salary of your new position, when you leave your position you won’t be entitled to any additional retirement benefits. Therefore, you will receive no credit for that time or for your accumulated sick leave. Both will be zeroed out.
Tags: annuity, sick leave
Re-employment after involuntary retirement
March 31st, 2011 | Uncategorized
Q. I was involuntarily retired in October 2010 due to BRAC. I had reached age and time requirements to take a full annuity. I was, however on the Priority Placement List and have received a tentative job offer. My question is what happens to my annuity when I re-enter federal service?
A. If you are re-employed, your annuity will stop and you’ll be treated as regular employee, with the right to retire again on a date of your chosing.
Tags: re-employment, RETIREMENT
CSRS offset and windfall elimination
March 30th, 2011 | Uncategorized
Q. Is there a difference between the Offset and the windfall elimination? Which of the two agencies is responsible for deducting which amount from which benefit?
I am a CSRS offset employee who retired Sept. 1, 2010. I started getting Social Security benefits in January 2010. The Social Security Administration and OPM have sent correspondence notifying me that there will be some sort of reduction and each claims the right to do the reducing. I am confused as to the nature of Offset vs Windfall elimination and who is supposed to do the deducting. It is my understanding that one or the other is responsible and not both.
A. As a CSRS offset employee, when you are first eligible for a Social Security benefit at age 62, OPM will offset your CSRS annuity by the mount of Social Security benefit you earned while covered by CSRS offset. Concurrently, if you have fewer than 30 years of substantial earnings under Social Security, under the windfall elimination provision, the Social Security Administration will reduce the amount of your Social Security benefit.
Taxes on retirement annuity
March 30th, 2011 | Uncategorized
Q. What does a retiree need to do to have federal and state taxes deducted from his or her retirement annuity?
A. Call OPM at 888-768-6738.
Tags: annuity
Sick leave conversion
March 30th, 2011 | Uncategorized
Q. I am a CSRS employee. I will have 3165.59 hours of sick leave when I retire. What is the actual time I will be credited for? I have received conflicting answers on whether 2,080 or 2,087 hours amount to one year of credited time and also whether the .59 hours round up or get dropped from the calculations.
A. There shouldn’t be any conflict on the number of hours that equal a year. By law it is 2,087. On the other hand, I’m not aware of any rule covering the crediting of an amount of time that is less than a full hour.
Tags: RETIREMENT, sick leave
Best retirement date
March 30th, 2011 | Uncategorized
Q. I’m planning on retiring at the end of June. With 3,100 hours of sick leave, I’ll have 38 years of CSRS service. I’ve selected June 30 as my last day for the following reasons:
1) My annuity will begin the very next day, 2) Even though June 30 is a Thursday, I will have completed my 80 hours of work to earn my final leave accrual, and 3) since retiree COLAs are based on whole months, I will get the retiree COLA for month of July (assuming there is one).
Is there anything wrong with my reasoning?
A. With one possible exception, your reasoning is sound. Even if there was a cost-of-living adjustment in 2011, it would not be included in your annuity until January 2012. And it would be 5/12 of the amount. That’s because COLAs are effective on Dec. 1 of the year in which you become eligible and are reflected in the January annuity payment.
Tags: COLA, RETIREMENT
Minimum annuity for spouse
March 30th, 2011 | Uncategorized
Q. I noticed on one of your blog postings that you stated the minimum annuity you can leave a spouse is $1. I’ve been told by my personnel office that the minimum is $3,600. Which is correct?
A. What I stated is correct. Your personnel office was misreading what OPM has written on the subject. The reduction in an employee’s annuity is “2.5 percent of the amount up to $3,600 elected as the base for the survivor annuity [emphasis added].” The reduction is 10 percent for any amount elected over $3,600. Go to www.opm.gov/retire/pubs/handbook/C050.pdf and scroll down to Section 50A3-1-3D
Tags: annuity, survivor annuity