Q & A
If my retirement date is in May, would I be allowed to contribute the maximum Thrift Savings Plan and catch-up amounts ($17,500 and $5,500) up to my retirement date in May and still receive matching up to 5 percent of basic pay. If not, what are the rules?
Answer: You can contribute up to your entire paycheck and receive the automatic 1 percent agency contribution, but the matching contributions will be limited to 4 percent of your pay, each pay period. Source: Mike Miles, FederalTimes.com – January 6, 2014
If I obtain an Office of Personnel Management disability annuity, am I eligible to obtain the special retirement supplement until age 62?
Full question: I am a federal law enforcement officer. I have an accepted workers’ compensation claim, and it appears that I am no longer physically able to perform the duties of my job. I do not appear to be completely disabled,…
I worked for the House of Representatives for 17 years under FERS) and have worked for the Department of Labor for five years. I plan on retiring in April, when I will be 60. In calculating my retirement, will my 17 congressional years be calculated at the higher rate (1.7 percent), and my DOL service at the 1 percent rate, even if I don’t retire directly from the House?
Answer: Yes. Your years of congressional service will be computed using the higher multiplier, and the rest using the standard one. Source: Reg Jones, FederalTimes.com – January 2, 2014
I will be 67 in March 2014, and my estimated Social Security benefit at that time will be $2,414. I continue to work, but will likely discontinue working as of the start of 2015, and thus will need to supplement our savings with SS benefits. My spouse will be 62 in January 2014, and no longer works. Her SS benefit at 62 would be approximately $940. We are both in reasonably good health. What makes the most sense: 1) My spouse claims at 62, and I file a restricted application receiving the spousal benefit while my SS benefit increases; or 2) I file and suspend, with my spouse claiming one half my benefit? Or, eliminating a scenario where we each delay any claiming beyond 2014, is there any other strategy you suggest we investigate?
Answer: Generally, if either one of you expect to live past your mid-eighties, earning delayed credits on your retirement is preferred if the goal is to maximize the total received over both your lifetimes. Choosing either a restricted application (option 1…
Can both spouses claim spousal benefits of each other’s account? In a case where both spouses are at FRA, and have filed, can the husband file for spousal benefits from the wife? Can the wife file for spousal benefits from the husband’s account? What would be the effect on the husbands’ filing for benefits if he has WEP being applied from a job that did not pay into Social Security yet has 27 years of earnings on file with Social Security.
Answer: Sorry SH. No. Both of you cannot get spousal benefits off each other’s records at the same time. The Windfall Elimination Provision (WEP) applies to pensions from employers that do not withhold for Social Security taxes such as governmental agencies or employers…
I recently got my Defense Department ID card and enrolled in DEERS. If I go to a doctor, do I need a Tricare card, too? Also, my daughter is six months old and has to have her shots renewed at nine months, but because of her age, she doesn’t have an ID card yet. Would I show my card for that? I’m new to all of this, and nothing seems clear. I’m not even sure what Tricare plan we have.
Answer: There is no such thing as a “Tricare ID card.” Your DoD ID card, with the notation on the back that says you are eligible for medical benefits, is all you need. Your child does not need a DoD ID…
I am 53 on disability retirement under CSRS. I have 29 years and six months. When I turn 55, can I convert to regular retirement? Also if the Postal Service offers an early-out, am I eligible?
Answer: No on both counts. Let me explain. To end your disability retirement, you’d have to be found to have recovered from your disability. Then a year later, because of your age and service, you’d be eligible for discontinued service…
Did Social Security always have a COLA?
Answer: With the 1.5 percent cost-of-living adjustment (COLA) about to begin, it is worth noting that many pensions do not have any cost-of-living adjustment (COLA) provision. Unlike the inflation protection provided by Social Security retirement, survivors and disability benefits, for pensions…
What is the difference financially between discontinued service retirement and disability retirement? I am 55 with 25 years of service under FERS. My high-3 is as a GS11-07.
Answer: As a discontinued service retiree, you’d receive 25 percent of your high-3. As a disability annuitant, you’d receive 60 percent of your high-3, minus 100 percent of any Social Security disability benefit for which you qualified. Source: Reg Jones, FederalTimes.com…
I retired under CSRS at age 57, 1½ years ago, with 32 years service. Before I worked for the federal government, I had other jobs that I paid Social Security payments. I am now told that since I retired under CSRS, I can’t collect my Social Security when I reach the correct age. Why can’t I collect that money since it was paid in before I worked for the feds? Also, If I can’t collect Social Security, where does all that money go that I paid in. Shouldn’t I get that back? Also, if I get a part-time job away from the government, would I have to pay Social Security taxes? If so, why?
Answer: Because you are receiving an annuity from a retirement system where you didn’t pay Social Security taxes, you’ll be subject to the windfall elimination provision, which will reduce your Social Security benefit. To find out why and by how much,…