By Reg Jones
August 29th, 2014 | CSRS Offset
Q. I’m looking to retire after 38 years of federal service, including 4+ military & 4+ postal. I left the post office and returned to federal service a year later in 1985. I was included as a CSRS Offset, paid my military deposit and have paid into Social Security for over 39 yrs. When I retire, will my CSRS retirement be affected by a reduction when I apply and receive Social Security, or will my Social Security be reduced? The way I read most articles, is that I will receive my federal pension and Social Security without a reduction. Am I correct? Read the rest of this entry »
August 29th, 2014 | Eligibility
Q. I worked for the post office from 1980 to 1990 and then quit to attend grad school. Although I’ve since become successful, immediately after grad school I needed money and so withdrew it from my CSRS account. Will I be eligible to go back on CSRS if I return to federal service? Read the rest of this entry »
August 28th, 2014 | Creditable service: FERS
Q. I retired from the military with a 40-percent VA disability. I am now a government employee under FERS. If I buy back my military time and then retire under FERS, will I still receive my VA disability payments and, if so, will the VA payments be deducted from my FERS retirement in the same way as they are deducted from my military retirement today?
A. While you would have to waive your military retired pay when you retire from your civilian position, you wouldn’t have to waive your VA disability payments. They would have no affect on your FERS annuity.
August 28th, 2014 | MRA + 10
Q. My USPS retirement eligibility date is Dec. 30 (56th birthday). My annuity projection shows about a $10,000 difference if retiring Dec. 30 vs. April 15 next year, which would be exactly 30 years. Is this correct?
A. If you retired at your MRA but with fewer than 30 years of service, you’d be retiring under the MRA+10 provision, which would reduce your annuity by 5 percent for every year you were under age 62. To avoid that hit, you’ll need to wait until you have 30 years of service to retire.
August 27th, 2014 | Creditable service: FERS
Q. I had 10 years of employment covered under CSRS, then resigned. I came back in 2007 under FERS. I also have two years, five months and 21 days military service. Would it be to my benefit to change to CSRS offset. I plan on retiring May 2015 when I will be 62 with 20 years of service.
A. You can’t change your coverage now. You are a FERS employee who will have a CSRS component in his annuity. If your active-duty service was performed before you first became a federal employee (or while you were covered by CSRS), you could make a deposit and get credit for that time in your CSRS component. If it was between the time you left and were covered by FERS (or while you were covered by FERS), it would apply to your FERS component.
August 27th, 2014 | Disability retirement
Q. I am a GS-1811 Special Agent with four years until my FERS retirement in 2018 at age 62 (I was “grandfathered in” at age 42). And I have also bought back 12 years of military service time. I failed a PIP due to my ADD/ADHD & depression, and I was recently served with a Notice of Proposed Removal as an 1811. I am in a 3-agent office, four hours away from our Resident Office, and there are no non-1811 jobs available to me in my office’s area. Because I am considered disabled per the ADA guidelines, and the NOPR says I cannot perform well enough as an 1811, are there some sort of retirement options available to me for which I qualify (e.g. medical, disability, Discontinued Service, etc.)? Read the rest of this entry »
August 22nd, 2014 | Creditable service: CSRS
It’s that time of year, when employees start thinking hard about retiring. If you are one of them, you need to know the two factors that determine if you’ll be able to do that. The first is age. The second is years of service. In this column I’ll go over the rules for Civil Service Retirement System, and in the next one, Federal Employees Retirement System.
- Age 62, five years of service.
- Age 60, 20 years of service.
- Age 55, 30 years of service.
- Age 50, 20 years of service.
- Any age, 25 years of service.
- Age 62, five years of service.
- Age 60, 20 years of service.
Immediate retirement means that you have the age and service needed to retire on an immediate annuity. Once you’ve got that combination, you can retire whenever you feel like it. Early retirement is an option, if your agency is offering you that opportunity through the Voluntary Early Retirement Authority and/or a Voluntary Separation Incentive Payment. It’s also an option if you are being separated through reduction-in-force or for poor performance. A deferred retirement is one where you leave government before being eligible to retire and apply for an annuity when you meet the eligibility requirements.
Service credit rules
Under CSRS, creditable service includes any service for which retirement deductions were taken from your pay and not refunded. With one exception, if it was refunded, the time will be creditable as long as you repaid the refund. Here’s the exception: If you got a refund for service performed before Oct. 1, 1990, and didn’t make a redeposit, it will still be used in determining your length of service; however, your annuity will be reduced actuarially based on your age at retirement and the amount you owe.
You’ll also get service credit for any period of civilian employment where retirement deductions weren’t taken from your pay, but only if it was performed before Oct.1, 1982. If it was performed on or after that date, you’ll only get credit for the time in your annuity computation if you make a deposit. If you don’t, your annuity will be actuarially reduced based on the amount you owe, plus accrued interest.
If you were on active duty in the armed services before Jan. 1, 1957, you’ll get full credit for that time. If it was performed after Dec. 31, 1956, and you were first hired before Oct. 1, 1982, you’ll also get credit for it; however, if you are retired and eligible for Social Security at age 62 and haven’t made a deposit for that time, those years will be deducted and your annuity reduced. If you retire on or after age 62, haven’t made a deposit, and are eligible for a Social Security benefit, the reduction will be made when you retire.
If you were first employed on or after Oct.1, 1982, you’ll have to make a deposit in order to get credit for that time. If you are receiving military retired pay, you’ll usually have to make a deposit for that time and waive that pay before retirement in order to get credit for it. On the other hand, if you are receiving reserve retired pay, you’ll still have to make a deposit to get credit for your active duty service, but you won’t have to waive your reserve retired pay.
Time in a nonpay status is also creditable if it doesn’t exceed six months during any calendar year.
Once you have enough years of creditable service to retire, any unused sick leave will be added.
Computing your length of service
Your length of service is based on all the years you’ve worked, plus any full months that don’t add up to a year. Any days that don’t add up to a full month are converted to hours and added to unused sick leave. If you have enough of those hours to create one or more months, they’ll be used to compute your annuity.
So what are “enough hours”? In order to produce 12 equal annuity payments, each month is treated as if it was 30 days long. To convert those leftover hours into additional retirement months, 2,087 (the number of hours in a work year) is divided by 360. As a result, each additional month is roughly 174 hours long.
Reg Jones was head of retirement and insurance programs at the Office of Personnel Management. Email your retirement-related questions to firstname.lastname@example.org, and view his blog at blogs.federaltimes.com/ federal-retirement.
August 22nd, 2014 | Premiums
Q. My ex-husband is retiring from the post office and right now he covers our 21-year-old daughter on his insurance plan. Will he still be able to keep himself and her covered with the same cost he is paying now, or will the cost be higher? Read the rest of this entry »
August 22nd, 2014 | Coverage after retirement
Q. I have been permanent part time as a TSO with the TSA for approximately 10 years and have been enrolled in FERS and Blue Cross/Blue Shield for all of my employment. Will I be allowed to carry my health insurance into retirement when I retire at 62 or do you have to be full time? Read the rest of this entry »
August 21st, 2014 | service computation date
Q. I’m under FERS, and my service computation date is Nov. 26, 1983. A co-worker in my organization has a SCD of Nov. 7, 1983, and is under CSRS. What is the SCD cutoff date for FERS vs. CSRS?
A. As a rule, employees who were first hired before Dec. 31, 1983, are covered by CSRS. To review that requirement and other details which might affect your situation, go to www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c010.pdf. If you meet the qualifications to be covered by CSRS, you’ll need to go to your personnel office and ask them to help you process your claim under the Federal Erroneous Retirement Coverage Corrections Act.
August 21st, 2014 | Early retirement
Q. I have 18 years of service and I am 51 years old. Can I do an early retirement and receive Social Security and pension?
A. No. If your agency was offering early retirement, you would have to meet one of the following age and service requirements: age 50 with 20 years of service or at any age with 25. You don’t meet either requirement.
August 20th, 2014 | Coverage after retirement
Q. I work for the Federal Bureau of Prisons, and I will be mandatory in 2-1/2 years. I got married in December and my husband is covered by VA. If I add my husband to my health insurance during open season in 2014, will he be able to remain when I retire in January 2016? I’m wondering because he will not have been on my insurance for five years. Read the rest of this entry »
August 20th, 2014 | High-3
Q. Between 2009 and 2012, I served two deployments in Afghanistan as a GS employee (CSRS). Can my salary during those deployments be used in the computation of my high-3?
A. No. Only actual basic pay earned while a federal civilian employee can be used in that computation.
August 18th, 2014 | Deferred retirement
Q. I’m a law enforcement officer with 16 years federal service. I also have three years federal service (non-LEO). I’m looking at deferred retirement next year with 20 years of federal service and being able to draw my retirement at age 60, I’m currently 52. According to all I have read, the following would be how I calculate the income.
Base pay 80,000 X 17years X 1.7 for law enforcement.
Base pay 80,000 X 3 years X 1 for non-law enforcement federal service.
I have bought back 13 years prior military service but not sure where this counts.
Could you please review this and tell me if I’m figuring the amounts out correctly? Read the rest of this entry »
August 18th, 2014 | Military service deposits
Q. Is it possible to buy back military service credit even if I am not currently employed by the government? I may at some future date return to federal service, but not for several more years. My concern is that I would like to purchase my military service credit before I retire from the Army Reserve (one to two more years). My understanding is that once I retire from military service, I am no longer eligible to purchase military service credit. If it is possible to do this, who would I contact to begin the process? I was a FERS-covered employee from 1992 to 2012. I did not withdraw my retirement contributions when I left federal service. I have 10 years of active military service. I have not previously purchased any military service credit. Read the rest of this entry »
August 15th, 2014 | Special retirement supplement
Q. If I retire with MRA and 30, can I waive the special retirement supplement and draw the increased annuity at 62?
A. Even if you waived the special retirement supplement — which I don’t think is possible — it would have no affect on your FERS annuity. That annuity is set on the day you retire and doesn’t change until you reach age 62 and are first eligible for a cost-of-living adjustment.
August 15th, 2014 | Creditable service: FERS
Q. I am FERS employee. I am 60 and this September I will have 29 years of service. Will I be penalized if I retire before I turn 62 and with only 29 years?
A. No, you won’t. You can receive an immediate, unreduced annuity at age 60 with as few as 20 years of service.
August 14th, 2014 | spouse benefits
Q. In the FERS retirement system, do I have to be married at the time of my retirement to obtain a spousal
annuity benefit, or can I get married after I retire and then change my status to spousal annuity? If I am married at the time of retirement and obtain a spousal annuity and later my spouse dies, can I change to the higher nonspousal annuity? Read the rest of this entry »
August 14th, 2014 | VERA
Q. In an article entitled “Calculating CSRS, FERS annuities,” you indicated “that you could also retire early at age 50 with 20 years of service, or, if you have 25 years of service, at any age. I have 27 years and four months of service and I am 50 years old. Am I correct to understand that if I retire now, there would be no age penalty? Read the rest of this entry »
August 13th, 2014 | Disability retirement
Q. I retired on FERS disability on Dec. 6, 2010, at age 53 with 21 years of federal service. I had 1,050 hours of sick leave. In May 2014, I returned to federal service in a virtual job that I work from home. OPM has not found me recovered.
1. Because my sick leave was not used in the calculation of my annuity (I retired under 62 years of age), should all my sick leave be restored?
2. The new hiring agency has offset my salary by my annuity and is deducting retirement. Should the agency use the old rate (.8 percent) or the new rate (4.4 percent), since my original hire date was in 1989?
3. What happens when I retire a second time? My agency tells me that I will get two annuity checks if I work less than five years and my retirement will be recalculated if I work more than five years? Read the rest of this entry »