By Reg Jones
Military buyback, federal retirement and Social Security
April 9th, 2013 | annuity reduction Benefits CSRS annuity computation Military service deposits RETIREMENT SOCIAL SECURITY taxes Uncategorized Windfall elimination provision
Q. I retired from the FAA in 2003 with 21 years of service, and I receive 50 percent of my base pay. I also am qualified for Social Security. I bought back my military service. I know my Social Security benefits will be lowered as I receive a pension from OPM. I am planning on taking my Social Security benefits when I turn 62. Will I still receive my 50 percent pension from OPM?
Tags: CSRS, military buyback, military service, OPM, SOCIAL SECURITY, windfall elimination provision
Catch-62 questions
April 8th, 2013 | CSRS annuity computation Government pension offset Military service deposits PAY RETIREMENT SOCIAL SECURITY taxes Uncategorized
Q. I retired in 2010 with 40 years of service, including four years of military service (1972-1976) that I did not pay back. While I am 62 and don’t qualify for Social Security yet, I recently received a notice that I now qualify for survivor benefits. Will this affect my CSRS annuity? Second, is the one-time Catch 62 check at age 62 in law or process? My concern is that if it is process, then it could easily be changed because of the budget situation to check every year after age 62 or when you start to draw Social Security if you qualify after age 62.
Tags: annuity, Catch-62, Government pension offset, military buyback, military service, OPM, SOCIAL SECURITY, Survivor benefits
CSRS survivor benefits and health benefits
April 8th, 2013 | HEALTH INSURANCE Premiums spouse benefits SURVIVOR BENEFITS Uncategorized
Q. I am a CSRS employee. Upon retirement, I would like to know what minimum percentage/amount of survivor benefit has to be in effect for my husband to continue to receive health benefits if I pre-decease him. Does the annuity have to be enough to cover the premium? If so, what would happen if the insurance rates increased dramatically over time and the annuity no longer covered 100 percent of the premium? My husband is willing to provide a notarized “less than all” annuity base. The bottom line is that I want to carry only enough survivor benefit to ensure health benefits.
Tags: annuity, CSRS, FEHB, OPM, Survivor benefits
Best day to retire in 2015
April 8th, 2013 | Annual leave CSRS annuity computation LEAVE RETIREMENT Retirement date Sick leave Uncategorized
Q. I’ve been in CSRS since Feb. 10, 1975, and I turned 65 in January.
1) Which day, in late leave year 2015, would be the best day to retire?
2) What should be my schedule for submitting retirement documents?
Tags: annual leave, annuity, CSRS, leave year, lump sum, OPM, sick leave
Insurance comparison
April 3rd, 2013 | HEALTH INSURANCE SURVIVOR BENEFITS Uncategorized
Q. My mother is a survivor of a retiree and has full medical coverage. She is 92 and in relatively good health, taking no medication to speak of and enjoying her daily routines. Her monthly medical insurance for Horizon Major Medical is now $451.66. Is this above or below what would be considered average for single seniors?
Tags: HEALTH INSURANCE, OPM, survivor of retiree
Divorce, remarriage and survivor annuity
April 3rd, 2013 | spouse benefits SURVIVOR BENEFITS Uncategorized
Q. I worked in the civil service program for 34 years and retired in 1998. I named my wife as the survivor annuitant.
In August 2005, she and I divorced. Even though the annuity was not mentioned in the divorce documents, I did not change the designation. Now I have been residing with a significant other for more than six years.
I would like to marry this woman and name her as the annuitant for my federal retirement. With no mention of the annuity in the divorce documents, can I make this change? If so, and since I have continually made the monthly adjustment to my retirement for a survivor annuitant, can this change become effective immediately, or must we conform to the nine-month waiting period?
Tags: annuity, divorce, OPM, remarriage, survivor annuity, Survivor benefits
Survivor benefits in marriage after retirement
April 3rd, 2013 | spouse benefits SURVIVOR BENEFITS Uncategorized
Q. I am a retired federal employee (1999) under CSRS. I got married in March 2012. My wife has little income, so I would like to add her as a beneficiary to my annuity in case I die.
Can this be done, and if so, what would be the costs and reductions in my present annuity?
Tags: annuity, CSRS, OPM, survivor annuity
CSRS, Social Security and the windfall elimination provision
April 2nd, 2013 | Resignation SOCIAL SECURITY taxes Uncategorized Windfall elimination provision
Q. I started work at 16 during the summer to help pay for college.
From 1966 to 1974, I made very low incomes but contributed to Social Security. Then I worked for the Forest Service and became a CSRS employee for five years. I resigned and got a refund on my retirement because I did not think I would work there again. But because I had five years in, the Forest Service says I still have a vested interest in CSRS and will pay me $202/month for that vested service when I retire.
Between 1990 and 1999, I stayed home with my children and occasionally worked as a substitute teacher — once again, low wages that contributed to Social Security. That means I have only about 11 years of substantial earnings toward Social Security. The windfall elimination provision states that my Social Security benefits cannot be reduced more than half of my pension. What pension? The $202 I get from CSRS, the $901 combined pension from the government or the $647 from Social Security? Can’t government brochures be more specific?
Tags: CSRS, Forest Service, OPM, SOCIAL SECURITY, windfall elimination provision
CSRS offset, temporary work and FICA
April 2nd, 2013 | annuity reduction CSRS Offset PAY RETIREMENT SOCIAL SECURITY Uncategorized
Q. I am retiring under CSRS offset. In 2007, I worked as a temporary employee for four months. During that time I paid FICA, but not the additional 0.8 percent toward my retirement. OPM states that I need to pay the full 7 percent to get full credit toward my retirement.
Given that the CSRS offset contribution is 7 percent, divided by 6.2 percent toward FICA and 0.8 percent toward CSRS, wouldn’t paying an additional 7 percent be a double payment toward FICA? Shouldn’t I just be liable for the 0.8 percent deposit? If I must pay a full 7 percent, will this affect my SS offset amount?
Tags: annuity, CSRS offset, FICA, nondeposit service, OPM, SOCIAL SECURITY
Government pension offset and windfall elimination provision
April 2nd, 2013 | CSRS Offset Government pension offset RETIREMENT SOCIAL SECURITY spouse benefits SURVIVOR BENEFITS Uncategorized Windfall elimination provision
Q. I’m trying to understand how my retirement income will be affected by the government pension offset and windfall elimination provision.
I’m a CSRS Offset employee (55 years old) contemplating retirement in the next year with more than 32 years’ service. I also receive a monthly spousal annuity from my deceased wife’s CSRS service. I understand that when I turn 62, my own CSRS pension will be reduced by whatever Social Security amount I’m eligible for (should be more than 30 years of Social Security earnings), but I just read something indicating that my spousal annuity also might be reduced at age 62 due to the windfall elimination provision. Can you shed light on how this will unfold?
Tags: CSRS offset, Government pension offset, OPM, SOCIAL SECURITY, Survivor benefits, windfall elimination provision
Creditable service
March 31st, 2013 | Uncategorized
Q. I am 43 years old with 20 years of federal service: nine years as Border Patrol agent and 11 as an 1811 (Postal Inspector). Will my Border Patrol time count as out at any age with 25 years?
Tags: Border Patrol, creditable service, OPM, Postal Service
Earnings limit
March 31st, 2013 | SOCIAL SECURITY Uncategorized
Q. I’m getting close to my FERS retirement, and I have a second job that I love. If I refuse my special retirement supplement from the Office of Personnel Management, will I still be financially penalized from my FERS retirement for making too much money from my second job? If so, how can I still continue to work without being penalized?
Tags: earnings limit, FERS, OPM, penalty, SOCIAL SECURITY, special retirement supplement
Disability compensation and annuity
March 31st, 2013 | High-3 PAY Uncategorized
Q. I’m a 100 percent disabled veteran, effective April 2008, with war-incurred injuries.
In 2010, I applied for disability retirement while working for the Postal Service with 14 years of service and did not buy back my military time.
The Office of Personnel Management calculated my high-3 on my postal salary alone. Should they not have calculated my Veterans Affairs Department compensation income from 2008, since it was a war-incurred injury that led me to retire? Is there a statue that protects vets who have war-incurred injuries? And does OPM allow special compensation for this matter?
Tags: annuity computation, disability, high-3, military buyback, OPM, Postal Service, RETIREMENT
Phased retirement
March 30th, 2013 | Uncategorized
Q. I am eligible to retire under CSRS in September (age 55 with 30 years). Will phased retirement be in place for me to consider on or before that date?
Tags: age, CSRS, OPM, phased retirement
Annuity after death
March 30th, 2013 | Uncategorized
Q. If a person dies after they receive their annuity check, what happens to the money left in their account?
Tags: annuity, contributions, CSRS, FERS, OPM, RETIREMENT
Age limit for life insurance?
March 30th, 2013 | Uncategorized
Q. When I retire from the Postal Service (under FERS), can I continue paying for life insurance for my husband and me when we are over the age of 80 or 90? Or does the Office of Personnel Management not allow me to continue paying for life insurance when I reach a certain age?
Tags: FERS, LIFE INSURANCE, OPM, Postal Service, RETIREMENT
First annuity check
March 29th, 2013 | Uncategorized
Q. I took the early-out with a retirement date of Feb. 28. When will I receive my first retirement check? And when will I receive my first incentive check?
Remarriage and benefits for new spouse
March 27th, 2013 | Uncategorized
Q. I retired in 1997 with a survivor benefit for my wife. She passed away in 2007, and the survivor deduction stopped. I am going to remarry, and I know the first deduction will be the 10-plus percent so I can give my new wife health insurance, but how much of a payback will be deducted, and what percentage can I leave her? I am 71. My retirement is about $67,000.
I am figuring that I will have about a $12,000 deduction when I remarry. I am thinking of getting a separate health insurance policy for my new wife plus giving her a share of my estate when I die. She has children she lives with now, and they would welcome her back.
Armed Forces Expeditionary Medal and leave accrual
March 27th, 2013 | Uncategorized
Q. I understand having an Armed Forces Expeditionary Medal will allow me to accumulate more leave per pay period, starting my third year as a DA civilian (from four to six hours).
Will having a second one increase that by two years? I served 21 years in the Marine Corps and have one AFEM on my DD-214 (Lebanon). While on active duty, I should have pushed for a second AFEM for my two tours in the Persian Gulf (1988-1990). If I would get a second year of increased leave accumulation by having a second AFEM, I’ll push to NavPerCom (PERS-312B) for action.
Tags: annual leave, Armed Forces Expeditionary Medal, military service, OPM
Catch 62 and Social Security
March 27th, 2013 | SOCIAL SECURITY Uncategorized
Q. Can you please explain “catch 62”? Also, can you qualify for Social Security after age 62 if you fall under the parameters of catch 62? In other words, do Social Security or CSRS check your eligibility only once at age 62, or do they check periodically after age 62? Can your CSRS pension be re-examined if you qualify for Social Security after you reached age 62, i.e. age 65?
Tags: annuity, Catch-62, CSRS, military service, OPM, SOCIAL SECURITY