By Reg Jones
Early retirement and pension
May 15th, 2013 | Uncategorized
Q. In 2004, I resigned as a GS-0132 with 17 years of federal service. In 2009, I started drawing Social Security disability.
I am 57. I did not withdraw my retirement when I separated. Can I draw my FERS retirement early based on my Social Security disability, or will I have to wait until I am 62 to begin drawing it?
Tags: annuity, disability, Early retirement, FERS, SOCIAL SECURITY
Foreign citizen and FERS, Social Security
May 15th, 2013 | Uncategorized
Q. A little over three years ago, I retired under FERS.
I was a widower at the time, so no survivor benefit was being withheld from my pay.
I now intend to remarry a French citizen and will reside here in the states for a time, then move to France. I would like her covered by my FEHB, at least while we are in the U.S.
Can I sign up now for a full survivor benefit for her? How much will it cost me? I read somewhere that it costs 10 percent of my current annuity plus the difference between the new annuity and old annuities paid to me for the number of months retired, plus 6 percent interest on that money.
Since she is at least not yet an American citizen, when I die, can she still receive the survivor annuity, whether continuing to reside here or if she returns to France? Would she receive COLAs on her portion of the annuity? If she returned to France, would she be obligated to pay taxes in both countries? Of course, as part of FERS, I also receive a Social Security benefit, based on my length of service and work record. Would a new spouse be entitled as a beneficiary to any or all of my Social Security when I die? She, of course, has never worked here in the states and so has not contributed to Social Security.
Tags: annuity, FEHB, FERS, foreign citizen, SOCIAL SECURITY, Survivor benefits
National Guard service and military time
May 15th, 2013 | Uncategorized
Q. I joined the Illinois National Guard on Dec. 23, 1981. I served boot camp time only from May 10, 1982, to June 25, 1982. I started getting blisters under my feet due to the boots and received a medical honorable discharge July 23, 1982. I have seven months of time.
Can the seven months be applied as military time for retirement?
Military service and buyback
May 15th, 2013 | Uncategorized
Q. I am a traditional guardsman and am considering federal employment.
Does any of my inactive duty or mobilized time count toward retirement or leave accrual? I’m 43. What is the minimum number of years I would need to work to qualify for a pension, even deferred? Whom can I contact for more information?
Tags: annual leave, annuity, Deferred annuity, military buyback, military service, minimum retirement age, MRA+10
Military buyback and disability
May 15th, 2013 | Uncategorized
Q. I am a 67-year-old military retiree. I retired in 1988 with 21 years of active-duty service. I draw a 40 percent VA disability, although I have three more claims, which may increase my percentage. I am also employed by the FAA as an FG-13, step 2 with five years of service. I am considering buying back my 21 years of active-duty service using a payment plan.
Because of using a payment plan, I won’t have the 21 years bought back until approximately one year before my planned retirement from the FAA.
1) Will I continue to draw my military retirement pay while making payments until I retire from the FAA, at which time I would forfeit my military retirement pay and draw my FERS retirement?
2) Once I’ve bought back my military time and I retire from the FAA under FERS, will my VA disability be affected?
Tags: disability, FERS, military buyback, military retired pay, military service
Military buyback and service computation date
May 15th, 2013 | Uncategorized
Q. I am a former civil servant with six years’ civil service who bought back military service. My service computation date for leave is September 1993. Is there a different SCD for retirement? Also: If I return to civil service, can I buy back military service completed since my previous civil service and military buyback? If so, would this also adjust my SCD further? (I am an Air Force reservist who has had several activated tours, including a recent six-month deployment.)
Tags: military buyback, military service, service computation date
Disability
May 14th, 2013 | Uncategorized
Q. The requirements for Social Security disability are much higher than for FERS disability retirement, so what happens to FERS if you are approved by OPM but denied by the Social Security Administration? Can you still receive your FERS disability retirement? Must you continue to reapply with SSA regularly? I have 15 years in FERS and am only 42.
Tags: disability, FERS, OPM, SOCIAL SECURITY
CSRS, Social Security and retirement
May 14th, 2013 | Uncategorized
Q. I plan to begin collecting Social Security at age 66 in CSRS. I have met my 40 quarters and 30 substantial salary requirements. Additionally, I took a two-year break to work in the public sector. When I retire at age 69 with 40 years’ service and begin collecting my CSRS annuity, will I be able to collect Social Security?
Tags: annuity, CSRS, SOCIAL SECURITY, windfall elimination provision
New job and allowances/raise
May 14th, 2013 | Uncategorized
Q. I’ve been offered a position with the Defense Intelligence Agency as a GG-13, step 6. I’m a GS-13, step 6, and have been for nearly a year. I accepted my position last year, going from my previous salary as a GS-13, step 4. Can I ask for a raise in the new position? Or, since I’ve been a step 6 for only around a year, am I ineligible? Also, with DIA, will my leave award of six hours per pay period apply? Should it? My new position with DIA will be outside the contiguous United States, so the allowances and leave days are different. And DIA is offering all applicable OCONUS allowances.
Tags: annual leave, step increase
Leave of absence, retirement and high-3
May 14th, 2013 | Uncategorized
Q. I’m going to be doing charity work for several months in 2014. I’m considering requesting a leave of absence for it (I understand such leaves are at the discretion of management). If I’m not granted the LOA and I resign, how will a few months (seven to eight total) affect my retirement? I plan to rejoin federal service after the charity event. I’ve consulted my local HR department and OPM, but I’ve received conflicting information. My questions: If I’m granted the LOA, is my high-3 affected by such an absence? Then, assuming I’m not granted the LOA and I resign, can I rejoin federal service with the high-3 intact? Lastly, do I lose my high-3 if I withdraw funds from TSP just before the LOA or resignation? That is the big one for me — some people tell me if I touch my TSP, I lose my high-3.
Tags: federal re-employment, high-3, leave of absence, OPM, TSP
Leave without pay, retirement and buyback
May 14th, 2013 | Uncategorized
Q. How does having slightly more than 600 hours of leave without pay for medical problems affect the calculation for qualified years for retirement? Is that time subtracted? Can any of it be paid back?
Tags: Leave without pay, LWOP buyback
CSRS employment and Social Security
May 14th, 2013 | Uncategorized
Q. I retired under full CSRS (none offset) in January 2010 with 35 years’ federal service as a GS 14/10. I am 59 and don’t have the 40 credits required to receive Social Security benefits when I turn 62.
Is it worth it to take a part-time job just to get my 40 credits in, or will there be a reduction to my federal retirement that will hurt more than it will help? I haven’t earned very much in the private sector — just a few years before I became a CSRS employee in 1977, including the time I served in the Army, which I bought back to add to my CSRS time (included in the 35 years), but still paid a very small amount to Social Security while serving in the Army.
I have an opportunity to start a small business (~$10,000 per year).
Would it be better to have the business in my wife’s name to add to her Social Security rather than affect my CSRS? Or will I expect to see a small Social Security check when I hit age 62 if I get my 40 quarters in with Social Security?
Tags: annuity, CSRS, SOCIAL SECURITY, windfall elimination provision
Three annuities
May 8th, 2013 | Uncategorized
Q. I retired from the military with full retirement in 1995. I think I understand that I cannot buy back any military time without forfeiting retirement pay when I retire from my federal job with the post office. Since the money comes out of my pocket, I have a hard time understanding this. However, I will have 20 years of service with the post office in 2017, when I am 56. If I take retirement, then why will I have a MRA+10 reduction till age 62 if I can retire fully at 60 with 20? Why would it be 30 percent instead of only 20 percent? Also, with the military pension and postal retirement, if Social Security is still around, how will this affect my annuity? Will I be able to pull all three full annuities? Read the rest of this entry »
Tags: annuity, FERS, military buyback, military service, MRA+10, Postal Service, SOCIAL SECURITY
CSRS offset and annuity
May 8th, 2013 | Uncategorized
Q. I received a refund of my CSRS contributions when I separated from federal service in 1993. Four years later, I returned to federal service. I am CSRS offset. My question concerns the Windfall Elimination Provision.
Because I withdrew my contributions from CSRS, and federal service where Social Security taxes are withheld is not affected by the WEP, will withdrawing CSRS contributions change my Social Security benefit when I retire?
Tags: annuity, CSRS, CSRS offset, SOCIAL SECURITY, windfall elimination provision
CSRS disability and military redeposit
May 8th, 2013 | Uncategorized
Q. I’m a 55-year-old CSRS employee filing for disability retirement from the USPS. I have eight years military but have redeposited only half of what is required.
Will I be able to continue making deposits while OPM reviews my case? And if not, will I get my initial deposit back in a lump sum?
Tags: CSRS, disability, lump sum, military buyback, military service, OPM, Postal Service
Disability payments and survivor benefits
May 8th, 2013 | Uncategorized
Q. After 25 years of service, I was approved for OWCP disability. Now, 15 years later and at age 68, I am still receiving the annuity. If I die still receiving OWCP benefits, will my wife receive survivor benefits from my CSRS service? Should I leave the money in the CSRS or draw it out?
Tags: annuity, CSRS, OWCP, Survivor benefits
How CSRS employees can grow their annuities
April 15th, 2013 | Uncategorized
A 1939 law allows federal employees to increase their annuities and earn tax-deferred interest by voluntarily contributing to the Civil Service Retirement and Disability Fund. But few Civil Service Retirement System employees have signed up for the Voluntary Contributions Program, in large part because few personnel offices and even fewer employees know the program exists. In this column, I’ll fill in the blanks.
Who can participate? CSRS and CSRS Offset employees who don’t owe any deposits or redeposits to the retirement fund may invest up to 10 percent of lifetime federal civilian earnings and earn market rate interest on deposits. Those deposits can be made at any time and in any amount, as long as they are in multiples of $25.
Federal Employees Retirement System employees can’t participate in the VCP because the law setting up FERS didn’t include a provision allowing that.
How are lifetime earnings determined? Since lifetime earnings continue to increase while you are employed by the government, you are dealing with a moving target when it comes to making deposits. The Office of Personnel Management has a mechanism that can protect you from overcontributing. When your VCP account reaches $50,000, OPM will send you a letter asking you to provide your salary history. You can estimate that by looking at your Standard Form 50s, which report every change in salary. If your history shows you have contributed more than the 10 percent limit, OPM will stop accepting deposits until your earnings increase sufficiently to bring you under the limit.
If you make contributions that exceed the limit, the excess will be refunded to you, without interest, when you close your VCP account. You can do that at any time and for any reason. However, once you close your account, it can only be reopened if you resign from the government and later return in a position covered by CSRS or CSRS Offset.
What are my VCP options? At retirement, you can use your account to buy additional annuity. If you are age 55, every $100 in your VCP account will buy you an additional $7 per year of annuity. You get 20 cents more than that for each full year you are over age 55. So, for example, if you were 60 at retirement, each $100 would buy $8 of annuity. That may not sound like much, but depending on how much you invested, how much you earned in interest and how long you live, it could be significant.
If you purchase additional annuity, you may also elect a survivor benefit. If you do, your own annuity will be reduced, just as it is when you elect a survivor annuity under CSRS or CSRS Offset. However, unlike those survivor annuity elections, you can name anyone to be your beneficiary. Your VCP survivor election doesn’t require spousal consent, nor is it subject to garnishment.
Although buying additional annuity appeals to some CSRS and CSRS Offset employees, many who invest in the VCP do so to earn tax-deferred interest. Their goal is to let the investment grow until needed or at retirement, whichever comes first. Be aware that when you retire, your VCP account no longer earns interest.
Is the VCP a good investment? One advantage of the VCP is that you can earn the same interest rate whether you invest small or large amounts. And you’ll know what the interest is before you put your money in because rates are set for the year ahead. In the past, the rate has been as high as 13 percent. However, for 2013, it is only 1.625 percent. While it’s not that good, it’s better than many banks are offering.
Obviously, there are plenty of places other than the VCP to put your investment dollars. Most financial advisers recommend that you maximize your contributions to the Thrift Saving Plan before considering other investments. However, one advantage of the VCP is that, like the TSP G Fund and U.S. Savings Bonds, your investment is backed by the government.
How can I participate? Submit Standard Form 2804, “Application to Make Voluntary Contributions,” to your agency. Once the form is approved, OPM will send you instructions for making contributions. SF 2804 is available at www.opm.gov, along with additional information in Publication RI 83-10.
Social Security quarters and CSRS benefits
April 10th, 2013 | CSRS annuity computation SOCIAL SECURITY Uncategorized Windfall elimination provision
Q. If I retired with 34 years of CSRS benefits and have now earned 40 quarters Social Security, will I be able to draw Social Security benefits?
Tags: CSRS, SOCIAL SECURITY, Social Security quarters, WEP
Military buyback
April 10th, 2013 | CSRS annuity computation FERS annuity computation Military service deposits RETIREMENT Uncategorized
Q. I am an active-duty member of the Air Force with five years of service.
I am planning to stay in for five more years to transfer my post-9/11 education benefits to my kids. I am looking to get out of active service at the 10-year mark and would like to remain working for the federal government. How would my years of service count toward retirement if I began to work for the Veterans Administration versus switching service branches (i.e. public health services corps)?