By Reg Jones
Penalty for early retirement?
February 16th, 2012 | Reductions in force
Q: My activity is offering VSIP/VERA. I am 56 and have 22 years in service under FERS. Do I get the 5-percent penalty if I accept the offer? Am I allowed to withdraw monthly on my TSP? Can I receive the Social Security supplement?
A: You won’t be penalized for being under age 62 if you are approved for early retirement. And, because you were born between 1953 and 1964, you’ll be eligible to receive the special retirement supplement.
Tags: Early retirement, FERS
Re-employment and RIF
February 15th, 2012 | Reductions in force
Q: Our base is about to undergo a Reduction in Force. I retired from the Air force Reserve and I’m a retired civil service employee due to the fact I was in the Air Force Technician Program. When I turned 60, I was forced to retire. I am receiving an annuity and have been re-employed. Would my service computation date still help me keep my job, or would I end up at the bottom of the list since I am a re-employed, rehired annuitant?
A: As a re-employed annuitant, you are an “at will” employee. This means you can be released at any time and for any reason. Your service computation date wouldn’t protect you because, as a re-employed annuitant, you would have the lowest retention standing.
Tags: FERS, re-employment
Employment after buyout
February 14th, 2012 | Buyouts
Q: After receiving a buyout, would employment with a government contractor require repayment of the buyout?
A: You would only have to repay the buyout if you later accepted employment with the federal government (including work under a personal services contract or other direct contract) within five years of the date of the separation on which the VSIP is based.
Tags: buyout
Re-employment after a VSIP
February 10th, 2012 | Reductions in force
Q: It looks like our agency is going to offer buyouts/early outs. I know I would have to pay back the buyout pay if I go back to work for the federal government within five years. Does this restriction apply to quasi-governmental entities such as the Federal Reserve and the bank regulatory agencies that are funded by the regulated community?
A: The restriction applies to the Board of Governors of the Federal Reserve and the FDIC because they are federal agencies. Federal Reserve banks aren’t.
Tags: buyout
Can penalty be waived?
February 7th, 2012 | DOWNSIZING
Q: I am a federal employee with the Air Force. I am 52 with 29 years of service in CSRS. I just received notice that my position is in the first round of cutbacks and is to be abolished by Sept. 30. My question is, since my position is to be cut, if I am offered the VERA-VSIP and accepted, will they waive the 2 percent penalty for each year of early separation? My separation would be Sept. 10, 2014, without the VERA-VSIP.
A: The 2 percent penalty (1/6 percent per month) for being under age 55 is a matter of law and cannot be waived.
Tags: CSRS
Retirement before downsizing
December 22nd, 2011 | DOWNSIZING
Q: If I meet the requirements for retirement (I am 65 with 20 years), and I get caught in my agency downsizing, will I get a chance to retire or will I lose my retirement benefits and have to leave the federal government?
A: Yes, you will be able to retire.
Tags: RETIREMENT
Early buyout retirement
December 22nd, 2011 | Buyouts
Q: I am 50 with 30 years of service. Will I be penalized if I take the early buyout at age 50 or at any age before my MRA of 56 years? If I draw my retirement at age 50, will I be entitled to receive my FERS supplement at age 56?
A: Yes, as a FERS employee you would be eligible to retire without the age penalty. That’s because you are at least 50 and have at least 20 years of service. As for the special retirement supplement, you’d be eligible to receive that when you reach your minimum retirement age, unless you have earnings from wages or self-employment that exceed the Social Security annual earnings limit.
ICTAP location
December 22nd, 2011 | Reductions in force
Q: I live in Minneapolis but for the past few years have worked in Madison, Wis. I rent a room during the week and return home to Minneapolis on weekends. My agency is going through a reduction in force. Will my Interagency Career Transition Assistance Plan eligibility apply to my home area of Minneapolis, my office location in Madison, or both?
A: Your position of record will determine your competitive area for RIF purposes. If your permanent location is Madison, that’s where your eligibility will be. If it’s in Minneapolis and you are either on temporary duty or some other kind of temporary assignment, it will be in Minneapolis.
Tags: Position of record
Government-offered buyouts
December 21st, 2011 | Buyouts
Q: I turned 62 in September. I have 29 years of service as a FERS employee. I’m thinking of retiring Jan 31. I work for the Federal Aviation Administration. Is there any possibility that the government will offer buyouts or early buyouts before I retire? Or is it a possibility that they will offer them later in the year?
A: We have no information about potential early retirement opportunities or buyouts. Your best source of information about them will come from your own agency.
Tags: FERS
VERA
December 19th, 2011 | Buyouts
Q: I left the Postal Service in 1999 to go to Arizona and received the refund then, and was reinstated in 2001. I’m 48 and in FERS. I bought back my military time already. I’m making biweekly payments to buy back the 13 years I lost when I left Rockford, Ill., in 1999. If the Postal Service offers a VERA, would I be eligible and given the opportunity to pay the balance due to buy back my time? Or do I need to make a full payment now to get the credit and be eligible if the VERA happens?
A: Unless you completed the deposit, you’d get no credit for that period of service for which you took a refund. However, even if you did make the deposit, your numbers may not add up. The early retirement rules would allow you to retire if you were at least 50 and had at least 20 years of service. Even though you would have at least 20 years, you wouldn’t be age 50. The Postal Service would also allow you to retire at any age if you had 25 years of service. It appears that you only have 24 years of service. However, if it turns out that you’ll have 25 years when the early retirement window opens, and you had completed your deposit, you could retire.
Tags: FERS, military service