Ask The Experts: Retirement

By Reg Jones

Former CSRS employee’s retirement options

Bookmark and Share

Q. I am a former federal CSRS employee who lost employment when the Philadelphia Naval Shipyard was closed in 1995. I had about 15 years of service and left my contributions in the system. I was born in July 1956 and am 56. When can I apply for a pension, and what can I expect? Would I take a deferred pension? Also, I have met my 40 quarters for Social Security and have been employed for about 17 years with the School District of Philadelphia. I am thinking about retiring when I am 62 but would like to know my options as far as the WEP and such. Can you help?

A. You would be eligible for a deferred annuity at age 62. You can estimate what that would be by using the following formula: .015 x your high-3 x 5 years of service, plus .0175 x your high-3 x 5 years of service, plus .02 x your high-3 x all remaining years and full months of service Note: Your high-3 is the average of your highest three consecutive years of average basic pay.

Because you’d be receiving an annuity from CSRS, a retirement system where you didn’t pay Social Security taxes, you’d be subject to the windfall elimination provision if you have fewer than 30 years of substantial earnings under Social Security.

Tags: , , ,

Leave a Reply

PLEASE NOTE! Do not submit ANY questions via the Comments form. Instead, please send your questions directly to fedexperts@federaltimes.com. Questions submitted via the Comments form will NOT be answered!