Wednesday, August 29, 2012

TSP withdrawals, when to withdraw

When to begin TSP withdrawals

Article Excerpt: "...perplexed about when to begin drawing money from my TSP, but I know that I will have to begin withdrawals by age 70½...."



Resource: federaltimes.com

Saturday, August 25, 2012

Special Retirement Supplement (FERS Supplement) Fact Sheet

NOTE: The following information has been gleaned from OPM at the following URL: http://www.opm.gov/retire/pre/election/benefits/srs.htm

Special Retirement Supplement (FERS Supplement) Fact Sheet

If you transfer to FERS and you have at least 1 calendar year (January 1 to December 31) of FERS service when you retire, you will be eligible for the Special Retirement Supplement. The special retirement supplement (also known as the FERS supplement) is unique to FERS. It substitutes for the Social Security part of your total FERS benefit until age 62, when most people become eligible for Social Security. The purpose of the supplement is to provide a level of income before age 62 similar to what you will receive at age 62 as part of a Social Security benefit. The supplement stops at age 62 even if you are not eligible for Social Security. Like Social Security benefits, the supplement is subject to an earnings test, which means the supplement is reduced if your income from earnings or self-employment is higher than an allowable amount.
Eligibility Requirements

In addition to at least 1 full calendar year of FERS service, you must retire on an immediate annuity (that is, one that begins within 1 month of separation) under one of the following provisions to be eligible for the Special Retirement Supplement:

after 30 years of service at or after your MRA (minimum retirement age); or
after 20 years of service at or after age 60; or
under one of the special provisions for law enforcement officers, firefighters, air traffic controllers, or military reserve technicians; or
under discontinued service retirement or early retirement (that is, a major RIF, reorganization, or transfer of function) provisions. However, if you retire on a discontinued service or an early retirement, you will have to wait until you reach your MRA before you can begin to receive the supplement.

Individuals who retire on disability or under the MRA + 10 retirement provision cannot receive the supplement.
Top of Page
Common Questions and Answers on the FERS Supplement

I am now covered by full CSRS, but I plan to transfer to FERS during the open season and retire in March 1999. Will I be eligible for the Special Retirement Supplement?

No. In order to be eligible for the Special Retirement Supplement, you must have at least one full calendar year (January 1 - December 31) of service subject to FERS computation rules.

I have three years of CSRS Offset service. Will my Offset service be creditable toward a supplement?

Yes. All CSRS Offset and FERS service are used in computing the special retirement supplement.

I am transferring to FERS with 20 years of service. I plan to retire in 2000 when I reach age 60. Will I get the Special Retirement Supplement?

Yes. You will have met the age and service requirements for an immediate unreduced annuity - in this case, age 60 with 20 years of service. You also will have one full calendar year under FERS - 1999. Remember, however, that the Special Retirement Supplement is subject to an earnings offset, and if you earn too much after you retire, your Supplement may be reduced to zero.

I am a 46-year-old law enforcement officer with 23 years of law enforcement service. If I transfer to FERS now and retire in 2 years when I have 25 years of service, will I be eligible for the Special Retirement Supplement as soon as I retire?

Yes. You will have met the age and service requirements for immediate unreduced retirement as a law enforcement officer. You will also have 1 calendar year of service under FERS. Since you qualify for benefits under the special provisions for law enforcement officers, it is not necessary for you to meet the minimum retirement age applicable to other types of immediate retirement in order to be eligible for the Supplement. In addition, the Supplement will not be reduced by any outside earnings until you reach the minimum retirement age.

I am 53 years old with 12 years of service. I want to transfer to FERS so I can retire under the MRA + 10 provision when I reach age 55. I understand that my annuity will be reduced because of my age. Will I be eligible for the Special Retirement Supplement?

No. To be eligible for a Special Retirement Supplement, you must retire under a provision of the FERS law that does not require reduction for age.

I am 53 years old with 18 years of service. I understand that I can retire under FERS at age 55, when I will have 20 years of service. I also understand that if I postpone the start-up of my annuity until I reach age 60, there will be no reduction in my annuity. Will I also be eligible for a Special Retirement Supplement if I postpone starting up my annuity?

No. You would not be eligible for the Special Retirement Supplement in either case. Postponing the start of your annuity will not change the provision of law under which you retired (the MRA + 10 provision). You must meet the minimum age requirement for an unreduced annuity at the time you retire to qualify for the Supplement.

Does the Special Supplement approximate the amount of Social Security I will get at age 62?

No. The Special Supplement approximates the portion of an estimated Social Security benefit that you would earn during civilian service that is creditable toward the FERS portion of your annuity. Since the formula for the Special Supplement assumes a working life of 40 years, each year of FERS service is worth one-fortieth of the estimated Social Security benefit.



Resource: OPM

This information accurate on August 24, 2012.


Monday, August 20, 2012

Federal Retirement and your COLA

Pay Raises and COLAs

Article Excerpt: "...The announcement of the 2012 COLA for retirees is made in mid-October. To constrain retirement costs, Congress has placed restrictions on COLAs to FERS retirees. FERS provides COLAs to retirees younger than age 62 only if they are subject to special provisions..."



Resource: www.govexec.com

Saturday, August 11, 2012

Social Security Not the Benefit it Was in the Past

Social Security Not Bargain it Was in the Past

Article Excerpt: "...People retiring today are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire. It's a historic shift ..."



Resource: socialsecuritynewsgroup.blogspot.com

Proposed House Republican budget would hit federal workers hard

Paul Ryan’s budget plan hits federal workers

Article Excerpt: "...Departments of Defense, Veterans Affairs, Justice and Homeland Security have so many employees, the majority of the eliminated positions would come from these agencies, all of which are related to national security...."



Resource: www.washingtonpost.com

Wednesday, August 1, 2012

Social Security: Tricks to maximize your benefit

34 Social Security Secrets You Need to Know Now

Article Excerpt: "... it's important to have as full a handle on Social Security's provisions as possible. Listed below are 34 things I've learned over the years that you may not fully know...."



Resource: www.pbs.org