By Reg Jones
Disability retirement
February 29th, 2012 | Uncategorized
Q. I was approved for disability retirement through FERS and was a part-time flexible carrier. Before I was separated, I was converted to full time in May. In July, my disability annuity was approved by OPM. My annuity payment was reduced as a part time. Does being a part-time employee but doing 40 hours a week throughout my employment and converting to full time before OPM’s approval entitle me to get benefits as a full-time employee? Can they do this knowing I worked full-time hours all the time? Also what about hours paid from Office of Workers’ Compensation Program (OWCP) leave of absence due to a illness. Shouldn’t those hours be calculated in my annuity as worked?
A. A disability annuity is based on simple formulas that don’t depend on whether you are full time or part time or on any OWCP benefits you received. Here are the formulas. For the first 12 months, you’d receive 60 percent of your high-3, minus 100 percent of any Social Security disability benefit to which you are entitled. After the first 12 months, you’d receive 40 percent of your high-3. minus 60 percent of any Social Security disability benefit.
Tags: annuity, disability, high-3, part-time
LWOP and FERS contribution
February 29th, 2012 | Uncategorized
Q. Several years ago, I was granted 16 months of leave without pay for a medical condition. While I was on LWOP, I made no contributions to FERS so I assume I should notify my Human Resources Office to buy back this time. Is this correct? If so, is there a specific form to complete? I recently bought back 25 months of active-duty military service so I assume LWOP would be handled in a similar manner.
A. An aggregate nonpay status of six months in any calendar year is creditable service. Coverage continues at no cost to you while in a nonpay status. When you are in a nonpay status for only a portion of a pay period, your retirement deductions are adjusted in proportion to your basic pay. If your LWOP exceeded six months in any calendar year, you’d have to make a deposit to the retirement fund to get credit for that time.
Tags: Federal Employees Retirement System, Leave without pay, military buyback
FERS disability retirement
February 29th, 2012 | Uncategorized
Q. I was placed on a FERS disability retirement by the FAA after suffering a stroke in 2005. The FAA revoked my class II medical, otherwise I would be able to return to my previous position. All my work for the FAA was conducted in either Kansas or Utah. In 2008, I obtained a job with a private company in N.J. In 2011, I was terminated and I requested unemployment benefits. The New Jersey unemployment office is stating I am not entitled to unemployment benefits due to my FERS retirement. Is this true?
A. Because this isn’t a question about federal employee and retiree benefits, you’ll have to take the matter up with the State of New Jersey unemployment office and ask them to show why you are barred from receiving that benefit.
Tags: disability, Federal Employees Retirement System, unemployment benefits
Survivor annuity
February 29th, 2012 | Uncategorized
Q. I am a FERS employee. When I retire, I do not wish to name my spouse for a survivor annuity because I do not want my annuity reduced. (She has a secure financial plan in place). However, I do want her to continue to be included in my FEHB plan after I retire. I am currently enrolled in a family option. I was told that she cannot be included in my health benefit package (after my retirement) unless I at least partially name her for a survivor annuity. Is this true?
A. You are required by law to provide a full survivor annuity for your wife unless she agrees in writing to a lesser amount or none at all. Because you are a FERS employee, the only lesser amount is 25 percent of your unreduced annuity. If you were to die and she wasn’t entitled to a survivor annuity, her FEHB coverage would end.
RIF and retirement
February 29th, 2012 | Uncategorized
Q. In a recent post, you answer that if given a specific reduction in force notice and you have the combination of age and service needed for immediate or early retirement, you can retire. Would this be the minimum retirement age and or age 50 with 20 years of service? Will this incur any penalty?
A. If given a specific RIF notice, you can take early retirement if you meet one of the age and service combinations: age 50 with 20 years service or at any age with 25. If you are a FERS employee, there won’t be any age penalty for taking early retirement, If you are a CSRS employee, your annuity will be reduced by 2 percent for every year you are under age 55 (1/6 percent per month).
Tags: minimum retirement age, RETIREMENT, RIF
FEHB and Medicare after 65
February 29th, 2012 | Uncategorized
Q. I am 65, employed at the U.S. Postal Service and applying for Medicare Ppart A but not Part B. I am confused after reading in the FEHB benefits brochure from several plans: “When you are age 65 or over and do not have Medicare …” That sound like if I do not take Medicare Part B, plans will pay less benefits and I will be paying more. There is a benefit to taking Part B, but the monthly premium negates it. I am afraid they pay only what Medicare pays and I will be left paying the difference.
A. If you don’t enroll in Medicare Part B, you’ll be responsible for any costs that exceed the Medicare-approved amounts for physicians who accept Medicare assignment for your claims or a potentially higher amount if your physicians don’t accept Medicare. You’’ll have to decide if the premiums you’d pay for Part B will be offset over time by what you’d gain from having that coverage.
WEP question
February 28th, 2012 | RETIREMENT
Q: I was an attorney for the government from 1976 to 1982. I withdrew a lump-sum retirement and have not/will not refund deposit. I worked from 1982 to 2002 in the private sector, during which I had substantial earnings and paid applicable Social Security. In 2002 I returned to a federal job and hope to retire in November. By then I will have about 15 years of federal service of which 10 years I paid both Social Security and CSRS offset. Am I safe in assuming that I wil not suffer WEP?
A: The fact that you took a refund of your CSRS contributions and don’t intend to redeposit that money doesn’t exempt you from the windfall elimination provision. You will still get credit for that period of service in determining your eligibility to retire and in your annuity computation. The latter will simply be actuarially reduced based on how much you owe and your age at retirement.
GS leave while mobilized
February 28th, 2012 | LEAVE
Q: I am a civilian GS employee and an active reservist. I am getting deployed to Afghanistan for about 100 days. I was wondering if I am allowed to use any/all/combination of my military leave, civilian regular leave or sick leave while I am deployed. This would allow me to get my GS salary as well as my Army salary at the same time. My GS salary is more than my active-duty salary will be.
A: You may take military leave (the 15 days granted each year for training), annual leave or LWOP-US. You may not use sick leave. For more information about your civilian benefits while on active duty, go to www.opm.gov/flsa/oca/compmemo/2001/2001-09a.asp.
Tags: LEAVE, military service
No step increase
February 28th, 2012 | PAY
Q: I have a little more than 11 years of military active-duty time and two years FERS time in law enforcement. I’m going to send off my RI 20-97 in a day or two. If I make a lump-sum payment, will my GS-6 step 3 (current pay grade) increase to a step 8 (pay grade at 13 years service)?
A: No, it won’t. However, making the deposit will increase your length of service and be used in your annuity computation when you retire.
Tags: FERS
Back to work
February 28th, 2012 | Re-employment
Q: I was employed by the federal government between August 1983 and September 1999. At the time I left civil service, I withdrew contributions of $50,000. I have been offered a position with the federal government again. I am now 64. If I accept the position, will I be eligible for a pension? How many years would I have to work? Am I eligible for redeposit of funds?
A: In order to get credit for your prior service, you would have to redeposit that money plus accumulated interest. If you did so, you’d be eligible for an immediate annuity because the requirements for getting that are age 62 with five years of service, both of which you’d meet. If you didn’t redeposit that money, you’d only get credit for the time you work after being re-employed. Therefore you could only retire after you have five years of service.
Tags: re-employment, RETIREMENT