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
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
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
RIF preference
December 7th, 2011 | Reductions in force
Q: The CPAC people at my organization are unhelpful and
unknowledgable. My SF-50 does not reflect my 70 percent disability for
veterans preference for a reduction in force. I have brought the
paperwork in but was told I was not hired under veterans preference and
don’t qualify because I retired with more than 20 years from the Army. They say if I had not retired, then I would be eligible, but refuse to give me the source of that rule.
A: Based on what you’ve written, your agency is probably right. You’ll find the information needed to confirm or rebut their decision at www.opm.gov/staffing/Portal/vetguide.asp#2Why.
Tags: military service, RETIREMENT
Laying off senior employees
December 5th, 2011 | Reductions in force
Q: The U.S. Postal Service wants to lay off senior employees first. I thought in a layoff situation the junior employees are removed first.
Can they do that if you are a federal civil employee? Will I have the option to retire first before they do this? I have 32 years of service and I don’t want to lose those precious years and my pension. The postal service is saying it’s in dire straits, but they are still hiring people at headquarters and the plants. How and Why is it doing this if it’s so broke? What should I do?
A: Reductions-in-force are designed to reduce the number of employees needed at certain levels and/or in specific occupations. RIFs can be agency wide or targeted at specific geographic locations. Bump and retreat rights to other positions are based on several factors, including: veterans preference, seniority and performance ratings. If you are given a specific RIF notice and have the combination of age and service needed for immediate or early retirement, you can retire.
Tags: Postal Service
No buyout
October 11th, 2011 | Reductions in force
Q: Our organization announced it was approved for a VERA/VSIP. I applied for the VERA and was told that the agency would not offer the buyout with the VERA, due to funding constraints. I was under the impression that if the VERA/VSIP was offered, a buyout automatically came with the VERA. Am I mistaken?
A: Yes, you are mistaken. The Voluntary Early Retirement Authority is a broad-based tool that allows those who have the years and service to qualify for early retirement to do so. The Voluntary Separation Incentives Payments program is more narrowly focused. It’s designed to encourage employees who are in surplus positions or have skills that are no longer needed in the workforce to separate by resignation, optional retirement, or by voluntary early retirement. It’s goal is to get employees to leave who would be unlikely to do so without the cash payment.
Tags: buyout
Early retirement
August 3rd, 2011 | Reductions in force RETIREMENT
Q. I retired from the Navy in 1998 (early retirement) with 16 years of service and am receiving military early retired pay. I’ve been employed by the Defense Department under FERS since 2000. Can I retire from DoD after 16 years? I will be 51 when I want to retire in 2016.
Also, will I be eligible for the supplemental payment? If my command does a reduction in force, should I apply? What are the penalties if I do?
Tags: military buyback
DSR, RIF and the wrong retirement system
July 5th, 2011 | DOWNSIZING Reductions in force RETIREMENT
Q: If you are eligible for a discontinued service retirement and you are part of a reduction-in-force, because you are on a priority placement program for a year, why can you not wait until the year is almost up to put in for your DSR?
Also, I am under the Federal Employees Retirement System, but I have money that I paid into the Civil Service Retirement System. I am not under CSRS Offset because when I was transferred the choices were not explained to me; I was just told that I had to transfer. What happens to the money that I left in my CSRS retirement when I retire (I paid in for about 14 years)?
A: If you are subject to separation in a reduction-in-force, that will happen on the date specified in your official RIF notice. There is no provision in law or regulation that would allow you to stay on board beyond that date.
On you second question, if what you say is correct, you were placed in the wrong retirement system when you returned to work for the government. You should have been put in CSRS Offset. The Federal Erroneous Retirement Coverage Corrections Act was created to deal with such erroneous enrollments. Go here to learn more about FERCCA and find out what your next steps should be.
Tags: Discontinued Service Retirement, DSR, Federal Erroneous Retirement Coverage Corrections Act, FERCCA, reduction-in-force, RIF
Abolished position
June 8th, 2011 | Reductions in force
Q: Under CSRS, do you still get your lump sum CSRS contributions back if they completely abolish your position, and are not offered in writing an equivalent position? This would be in addition to your full retirement benefits, minus age penalty. I am 47 1/2, with 31 years of CSRS service, and the only shop planner in my position description. They are talking about wiping out our maintenance department and contracting out. My dad retired about 15 years ago when they abolished his job, and he got his contributions back. Has this changed?
A: Because you’d be eligible for discontinued service retirement — 25 years of service at any age — you wouldn’t be able to receive a refund of your retirement contributions.
Tags: CSRS, Discontinued Service Retirement, downsizing, retirement contributions