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
Federal retirement and re-employment
May 14th, 2013 | Eligibility FEHBP Military service deposits Minimum retirement age part-time Re-employment Re-enrollment RETIREMENT
Q. 1. I left the Fed in November 2011 with 22 years of creditable service (military time buyback included) and, as I am under my MRA of 56, would not be eligible for my retirement benefits without penalty until age 62, correct? 2. Can I work part time (consultant) on an agency’s payroll without affecting my current status, or would that part time add to my benefit? 3. Also, if I came back to the Fed and did three more years of full-time work before age 62, would that reinstate my health benefits?
Tags: creditable service, Early retirement, federal re-employment, FEHB, military buyback, military service, minimum retirement age
Early-outs and part-time service
May 14th, 2013 | Creditable service: CSRS Creditable service: FERS Early retirement part-time Postal Service RETIREMENT
Q. I’m a rural mail carrier and am wondering if I would qualify for an early out when/if offered. My duty date is April 1984 (29 years), but I was hired as a sub (rural carrier associate) and didn’t become regular until 1990, so my retirement computation date is January 1990 (23 years). But I recently turned 49, so I would need 25 years of service to retire under an early out because I am under age 50. I would have 25 years in if the counting period included my sub years.
Are my years of service calculated from when I was hired as an RCA in 1984 or when I went full time in 1990? I realize my annuity would be based on my full-time service, but would my years to total service be calculated with my part-time years? I realize rural carriers have not been offered early-outs yet , but there is much talk about it, and I’m afraid if they offer it before I turn 50 , I won’t qualify since much of my time was as a sub carrier.
Tags: Early retirement, part-time employment, Postal Service
Early postal retirement and supplemental income
April 24th, 2013 | Early retirement Postal Service RETIREMENT Special retirement supplement
Q. I took early retirement from the post office Feb. 28, 2009, with 26 years of service at age 48. Will I be eligible for supplemental income at age 56?
Early retirement
March 31st, 2013 | RETIREMENT Uncategorized
Q. I work for the Defense Department, where there is talk about another set of early-out offers due to budget/sequestration cuts. They say the problem is funding these buyouts. I remember back in the late 1980s they offered “years” instead of money. Is there any chance they might offer three years to either your age or length of service to encourage people hanging in there trying to max out their retirement benefit to leave early even without the $25,000 buyout.
Tags: Early retirement
Re-employed annuitant
March 28th, 2013 | SOCIAL SECURITY Uncategorized
Q. I am 55 years old and took an early retirement offer with an incentive from the Postal Service in August of last year. I had 26 years of full service. I am considering an opportunity to become re-employed part time with the U.S. Forest Service as a GS4 information receptionist at the local visitor center. This is a seasonal position lasting six months a year. How will this affect my Thrift Savings Plan withdrawals and my special retirement supplement when I turn 56? I retired as an EAS-18 postmaster.
Tags: annuity, Early retirement, Earnings test, part-time, Postal Service, re-employment, SOCIAL SECURITY, special retirement supplement, TSP
Push back early retirement date?
March 22nd, 2013 | Uncategorized
Q. Early retirement was offered at our agency with a must-separate date of Aug. 3. Can that day be extended to Dec. 31 by our associate commissioner or the Office of Personnel Management if you are working on a specific project important to the agency?
A. No.
Tags: Early retirement, OPM
Negotiate an early-out?
March 21st, 2013 | Uncategorized
Q. I will have 30 years with the U.S. government on May 24 (28 years with the Navy as a civilian employee).
My minimum retirement age of 56 will not be met until Nov. 25. With the budget fiasco going on, might I be able to negotiate an early-out with the following at my 30-year service computation date:
1) A waiver of the MRA and retire in May.
2) Full Voluntary Separation Incentive Pay.
3) Full special retirement supplement.
What do you think of this?
Tags: Early retirement, minimum retirement age, service computation date, special retirement supplement, VSIP
Options for leaving federal work at 48
March 19th, 2013 | Uncategorized
Q. I am 48 and have 30 years of federal service. I work for the Department of Veterans Affairs and have not heard any discussions about buyouts, early outs, etc. What options do I have for early retirement, buyout, resign, etc.? In my opinion, if someone has worked 30 consecutive years, there should be no minimum retirement age.
A. That may be your opinion, but it isn’t the law. If you want to leave before you meet the age and service requirements to retire, you can do that. You only option would be to apply for a deferred retirement at age 62.
Tags: Buyouts, Deferred retirement, Early retirement, minimum retirement age
Eligibility for benefits
March 18th, 2013 | Uncategorized
Q. I am 64 with 9.5 years under FERS, but it was split up after 4.7, then a few years later I returned and now have 4.8 years. Could I retire on an immediate retirement and be able to take my Federal Employees Health Benefits along with me? I know if there was an early-out/buyout offer, I could. I was given a service computation date of Feb. 4, 2004.
A. You could retire on an immediate annuity because you are at least age 62 and have at least five years of service. And you could carry your FEHB coverage into retirement if you were enrolled in the program for the five consecutive years before you retire. That break in service doesn’t matter if you were enrolled in the program when you left government and immediately re-enrolled when you returned, and the total of those two enrollment periods equals a minimum of five years.
Tags: age, buyout, Early retirement, Eligibility, enrollment, FEHB, FERS, five-year
Survivor annuity and insurance
March 18th, 2013 | Uncategorized
Q. I’m a 53-year-old CSRS employee with 34 years of service. I may have the option of an early-out in May. I would like to carry my Federal Employees Health Benefits into retirement. I will choose no survivor benefit, but I would like to have my wife keep my insurance after my death. Can I do this?
A. No, you can’t. To be eligible to continue her FEHB coverage, she would have to be covered by the self and family option when you die and be entitled to a survivor benefit. Note: You are required by law to provide a full survivor annuity to your spouse unless she agrees in a notarized writing to a lesser amount or none at all.
Tags: CSRS, Early retirement, FEHB, HEALTH INSURANCE, self and family, spouse, survivor annuity
Early retirement, penalty, SRS and TSP
March 18th, 2013 | Uncategorized
Q. I have 27½ years in the Postal Service and I am 52½ years of age. If an early-out comes in the next few months, will I get a penalty for leaving? Do I get my special retirement supplement, or do I have to wait for that? Also, do I get to take my Thrift Savings Plan now, or do I wait for that?
A. Reg: If you were offered an opportunity to retire early, you have the age and service needed to accept it. If you did, you wouldn’t be subject to the age penalty and you’d be entitled to the special retirement supplement when you reach your minimum retirement age, which is 56.
Mike: The early-out has no effect on the Internal Revenue Service early withdrawal penalty. You will be subject to the penalty until you reach age 59½ unless you qualify for one of the exceptions listed on Page 7 of this notice: https://www.tsp.gov/PDF/formspubs/tsp-536.pdf
Tags: Early retirement, IRS, minimum retirement age, penalty, Postal Service, special retirement supplement, TSP
Retirement options
March 15th, 2013 | furloughs Uncategorized
Q. I am so totally lost in all of this early retirement and buyouts and furloughs. I have 33 years of service with the government and am 55 years old under CSRS. Not sure which to apply for or wait until our office gives us reduction-in-force notices if our office is going to reorganize, restructure. Would I be eligible for early buyout with full benefits come May?
A. You really are lost! However, everything should be clearer when I tell you that you can retire anytime you want to. That’s because you have the age (55) and service (at least 30 years) needed to do that. As a result, you can keep working, retire now, wait until your agency offers you a buyout, or wait until you receive a RIF notice. The world is your oyster. Enjoy it.
Tags: buyout, CSRS, Early retirement, furlough, reduction-in-force
Early-out and bonus repayment
March 14th, 2013 | DOWNSIZING Uncategorized VSIP
Q. I may be offered an early-out in May. I have been working for the Army Corps of Engineers for the past 34 years. I’m a CSRS employee. If I take the buyout and have a chance to go work for FEMA or the U.S. Forest Service fighting fires out west this summer, can I do this without paying back the bonus?
A. According to the Office of Personnel management, “An employee who receives a [Voluntary Separation Incentive Pay] and later accepts employment for compensation with the Government of the United States within five years of the date of the separation on which the VSIP is based, including work under a personal services contract or other direct contract, must repay the entire amount of the VSIP to the agency that paid it — before the individual’s first day of re-employment.” You’ll have to check with your potential employer to determine if there is any exception to this rule.
Tags: Early retirement, OPM, re-employment, repayment, VSIP
Retirement eligibility
March 8th, 2013 | Uncategorized
Q. I am 61 years old. I have more than 17 years of civilian service. I would like to retire early by age 62. Is this an option with MRA+10? Voluntary early retirement is not an option yet.
A. At age 62, you could retire on an immediate, unreduced annuity with as few as five years of service.
Tags: age, annuity, Early retirement, MRA+10, VERA
Early retirement and age penalty
March 8th, 2013 | Uncategorized
Q. I am a FERS employee with 25 years of service (21 Postal Service, four military, which I bought back). I am 45 years old. As a FERS employee, will I be penalized 2 percent or 5 percent a year for accepting an early-out offer? If so, what other penalties will I face?
A. If you accept an offer of early retirement, you won’t be subject to the age penalty. And there aren’t any other penalties that would apply.
Tags: age, Early retirement, FERS, military buyback, penalty
Military buyback and early retirement
March 8th, 2013 | Uncategorized
Q. Recently, the Postal Service offered early retirement for clerks with 25 years of service. I started in 1988 but have eight years of leave without pay for Title 10 deployments with the Army Reserve. I am planning to retire from the Army Reserve soon and go back to the Postal Service. Should I buy back my military time in hopes that I can take an early retirement next year if offered? Will I still be able to retire from both employers?
A. If you make a deposit for your years of active-duty service, they will be added to your years of civilian service and, if you have enough of them and are the right age, qualify to accept an offer of early retirement. If you will be entitled to reserve retired pay, you will be able to receive both it and your civilian annuity.
Tags: annuity, Early retirement, military buyback, Postal Service
Early retirement eligibility
March 7th, 2013 | Uncategorized
Q. I am 56 years old with 22 years of service in the Defense Department. Am I eligible to retire early?
A. You have the age and service needed for early retirement. However, you can only retire if your agency offers you an opportunity to do so.
Tags: age, Early retirement, Eligibility
RIF and health benefits
March 6th, 2013 | Uncategorized
Q. I’m 53 with 27 years and 10 months. I could get six months of military service for Army Reserve full-time training credit. I’m in a term position. If I’m given a reduction in force, what are my options? Can I defer my retirement until my minimum retirement age of 56? If so, would I lose my health and insurance benefits? If I’m RIF’ed and do not defer, does that means I lost health benefits?
A. If you receive a RIF notice, you have two choices. You can either sit tight and see if you are going to be separated, or you can take early retirement. If you are going to be involuntarily separated, you can still retire. Whether your retirement was voluntary or involuntary, the age penalty would be waived. Therefore, there wouldn’t be any point in retiring and postponing the receipt of your annuity to a later date. As for your Federal Employees Health Benefits coverage, as long as you were enrolled in the program before the RIF was announced, you could carry it into retirement.
Tags: age, Deferred annuity, Early retirement, FEHB, involuntary separation, military, minimum retirement age, penalty, reduction-in-force, term positions
Early retirement eligibility and NAF time
March 5th, 2013 | Uncategorized
Q. I am 54 and have 24 years with the federal government. I will hit my 25-year mark in November, when I also turn 55. If early-outs are offered, will I be eligible to retire being that I won’t hit 25 years until after October? Also, prior to working for the federal government, I worked for five years with nonappropriated funds. I was originally told by human resources that those years would count toward my service computation. This year, I requested a retirement estimate from HR, and they say those five years don’t count. Is this correct?
A. If you were offered the opportunity to retire early, you could do that now. Any employee who is at least age 50 and has at least 20 years of service can do that.
I have no idea whether your NAF service is creditable. So many windows of opportunity have opened and closed that it depends on when your service was performed. Only your agency (and the Office of Personnel Management) can answer that question.
Tags: age, creditable service, Early retirement, Eligibility, nonappropriated funds, OPM