By Reg Jones
Q. I’ve read where normally one’s salary is cut by the amount of annuity he or she is receiving, but what happens if the new salary is less than the existing annuity? Read the rest of this entry »
Q. I am eligible for a 30-year retirement in July at age 50. If I do not get another job, I am eligible for a special retirement supplement due to the mandatory early retirement that federal law officers must take.
If I don’t work for, say, six months and then get a job in the private sector and work two years, or if I get a job immediately upon retirement and only work a couple of years, will I still be eligible for the supplement after leaving the private sector?
February 21st, 2014 | Benefits Creditable service: CSRS Creditable service: FERS CSRS annuity computation EMPLOYMENT FERS annuity computation High-3 Military service deposits PAY Re-employment RETIREMENT SOCIAL SECURITY taxes Windfall elimination provision
Q. 1. How are the days of active-duty service calculated?
2. Is that a one-to-one credit added to years of service?
3. Can you buy it back after you retire and adjust the annuity accordingly?
4. Can you buy back portions of it?
5. Can you pay in installments?
6. What percentage of military pay per year would you get in retirement? For CSRS, it is roughly 2 percent based on high-3; would it be calculated on actual salary back then or adjusted for inflation?
7. Any chance for a retroactive payment once established?
8. Will I lose any benefits if I do this?
9. Can I do this if I was not in the military long enough to earn a pension?
10. How does Social Security fit into this picture?
11. Can I get all three (FERS/CSRS, Social Security, military/Defense Department) separately? What is the penalty for collecting multiple pensions if done separately?
Q. Would I be eligible for a Voluntary Separation Incentive Pay if offered? I am 57 and will have 33 years of service under CSRS in June. I took an NTE position in 2009 that ended in Sept 2011 and was unemployed from Sept. 30, 2011, to June 2012, when I was reinstated. Because I had the break in service — and since that break have been working less than three years continuously, would that make me ineligible for a buyout?
Also, is there a limit on how many times you can be turned down for a VSIP or any recourse after multiple times while others get approved for it?
Q. I am 61 years old and have been retired from the fire service. I have, according to Social Security, 39 units which were not earned at fire service. If correct, I need one unit to earn Social Security at age 62, and I need this unit also to be eligible for Medicare at age 65? Is there any other way to get this one quarter other than going to get a job for three months?
Q. I worked under CSRS from 1963 to 1984 and withdrew my contributions when I left. I returned to a term position in 2002 and was informed that I couldn’t elect CSRS, so I selected a FERS pension. I am 72 and still employed. When I retire, I will receive an actuarially reduced CSRS pension. Does the reduction computation continue each year into retirement? What is the reason (law or regulation) that this reduction is itself not reduced or eliminated if I retire at a more advanced age (and will receive the pension for fewer years)?
Q. My wife left her government job a number of years ago and withdrew the money from her FERS account. She re-entered government service a few years ago. She then requested the redeposit amount required to bring her FERS account whole again. To make her FERS redeposit payment, she took a withdrawal from her IRA.
We received a 1099-R from her IRA firm showing the withdrawal and we will need to report on our taxes as income. Since the money went back into FERS, can I deduct that amount as if it were being rolled over into an IRA?
Q. If a person qualifies for a buyout, does the position have to qualify for it?
Q. I am a federal employee under FERS. In 2011, I retired from federal service from the House of Representatives. I returned to federal service one month later. Because my retirement package was already computed, my income is split equally between my retirement annuity and my pay from the House of Representatives. The deposits are listed as US Treasury Civ Serv for my annuity and US House of R for my regular monthly salary. I turned 66 in November; thus I’m eligible for full Social Security retirement if I choose to draw it. I would like to continue working. Will I be able to receive full Social Security retirement with no offset to my annuity or monthly salary?
Q. I started my career with the federal government in December 2010. If I am not mistaken, my retirement contribution is 1.2 percent. I left the federal government in June 2013. I will be reinstated hopefully in about a month. As a reinstated employee whose initial date of entering the federal workforce was in 2010, will I be abided by the new retirement contribution rate of 4.4 percent?
Q. I am collecting my CSRS pension, having retired from the Postal Service in February 2011 after a combined 37+ years of service — nine years and seven months with the Air Force, and 30 years and two months with the Postal Service. I’ve worked for a private corporation for about a year and had no problem with working and collecting a pension.
But now I have an opportunity to get a job with the U.S. Census Bureau. Since it is a government agency, I figured there may be some conflicts regarding collecting a salary and a pension at the same time. But each person I’ve asked regarding a potential conflict, I’ve received a different answer, which is to say, nobody really knows the answer but everyone has an opinion.
Is there clarification that you can give to me regarding the possible conflict I may have? It may not be worth my while to take a position with the Census Bureau if my financial losses outweigh my financial gains.
Q. I retired, I believe, under the MRA + 10 program, at the end of my member’s term. I have a total of 13 + years with the House of Representatives. I get a small annuity. I may have an opportunity to return to full-time service with the Department of Homeland Security. How will that affect my retirement? I assume the annuity would go away but am not sure how the health care would be handled. And I have been retired almost five years now. Will this new position accrue along with my previous 13 (since they were with the House and not GS)?
Q. I am 55 years old and plan on retiring when I turn 56 (minimum retirement age) with 30 years of service. I worked for 4½ years under CSRS and then had a break in service for almost three years. When I went back to work, I was put in the CSRS Offset and worked for another five years. I then had another break in service for two years before going back to work. At this point, I switched to FERS. Am I entitled to the special retirement supplement when I retire?
Q. I am a retired FERS annuitant and returned to work on a full-time continuous basis for one year and 25 days. During this time, my salary was offset by the amount of my annuity. I worked for the Veterans Affairs Department, and my human resources submitted the supplemental annuity application to the Office of Personnel Management in December 2012. After waiting for eight months, I finally received a letter from OPM stating, “To be eligible for a supplemental annuity benefit, you needed to be re-employed at least two years.” All the information I have been able to find indicates a one-year eligibility requirement. Do you know if this has changed to two years and, if so, what is the reference and effective date?
Q. I retired from the Postal Service approximately eight years ago after 11 years of service to pursue other aspirations. I am curious about the chance and opportunity to be reinstated. I am nearing age 40 and would like to get back into a solid foundation.
I worked as a distribution clerk and a window clerk, but would really like to move into a position, if allowed, that deals with the mechanics of the machines and computers since I was doing that work there, as well. Who would I be able to contact for information regarding my query?
Is there any other information that you could provide me with? If so, what would it be?
Q. I retired Feb. 28, 2013, at my minimum retirement age with 13 years. Can I be rehired in another position to get my 20 years in? I was a rural mail carrier.
Q. What are the “rare exceptions” to having your salary reduced by your annuity amount when re-entering the federal job market? What if the job pays less than my annuity?
I see the following over and over in the forums, but no additional info:
“As a rule, your salary would be offset by the amount of your annuity and you would be able to contribute to the retirement fund. If you worked for a full year, you’d receive a supplemental annuity; if you worked for five years, you’d receive a redetermined annuity. On the other hand, there are certain limited authorities that would allow you to return to work and receive both your full annuity and the full salary of your new position. However, you would not be permitted to contribute to the retirement fund and, when you retired again, you wouldn’t be eligible for any additional retirement benefits.”
What types of federal positions are referenced above?
Q. I got a letter from the National Association of Retiring Federal Employees stating, “Federal agencies are now re-employing federal retirees on a limited part-time basis without an offset to their annuity.” Can you explain this a little further? How would I find and apply for one of these positions?
Q. Is reinstatement possible at age 67? I voluntarily retired in 2005 after 38 years in the Postal Service.
Q. I retired in 2004 under the D.C. Police and Firefighters Retirement System (Metro Plan) and immediately re-entered the federal government as a permanent full-time employee. My second career will consist of 11 years. I assume I will be able to continue to receive my current annuity and draw a smaller second annuity from my 11-year service. Is that true?