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Retirement Benefits For Federal Employees

When Do Survivor Benefits End

Should a Federal Retiree Take Medicare in Retirement

Survivor annuity payments are payable through the end of the month prior to the date of the event which caused the loss of eligibility. For example, if a remarriage occurred in April, benefits would end on March 31.

Survivor annuities payable to widows, widowers, and former spouses end if the survivor remarries before age 55 and was not married for at least 30 years to the deceased employee or annuitant. Widows, widowers, and former spouses who remarry after they reach age 55 continue to be eligible for survivor annuity benefits. The survivor annuity for a former spouse who is entitled because of a court order ends if the terms of the court order are satisfied. Insurable interest annuities are payable for the life of the survivor.

If an annuity to a surviving spouse ends for a remarriage, it can be restored if the remarriage ends. Before the benefit can be restored, the survivor must pay back any lump sum payment of retirement contributions, if applicable. If you want your current spouse annuity restored, write to us and include a copy of the decree of divorce, annulment, or death certificate. Former spouse benefits that end because of a remarriage can never be restored.

Annuity benefits for children end when the child reaches age 18, marries, or dies. Survivor annuities are payable through the end of the month prior to the date of the event which caused the loss of eligibility. For example, if the child turns 18 on June 29, benefits would end on May 31.

Do Federal Workers Get Sick Days And Vacation Days

All federal workers receive the following vacation days:

  • 13 days of paid vacation per year for the first 36 months of employment
  • 20 days of paid vacation per year from year 4 to year 15 of employment
  • 26 days of paid vacation per year from year 15 forward

In addition, workers accrue 13 paid sick days each year. Any unused days from one year are carried to the next. Its not uncommon for federal workers to accrue more sick days that theyll ever use. The unused sick days can be exchanged for an increase in a federal workers annuity payment upon retirement.

Finally, all federal workers receive these 11 paid holidays:

  • Washingtons Birthday

How Do I Calculate My Gs Retirement Pay

The benefit is generally calculated as 1 per cent of average high-3 pay multiplied by years of credible service. For those retiring at age 62 or later with at least 20 years service, a factor of 1.1 percent instead of 1 percent is used.

How much does a GS 12 make in retirement?

How much does GS-12 retire? The pay for GS-12, Phase 10, Rest of US, in 2018 is $ 95,388. When used as a high-3, and for 30 years and under 62, that equates to an annuity of $ 28,616 . At age 62 or older, it would be $ 31,478 .

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Early Retirement From Federal Job

Normally, an employee is eligible to retire from federal service when the employee has at least 30 years of service and is at least age 55 under the Civil Service Retirement System or 56 and six months in 2023 under the Federal Employees Retirement System has at least 20 years of service and is at least age 60 or has at least five years of service and is at least age 62. However, the Office of Personnel Management may allow agencies to temporarily lower the age and service requirements in order to increase the number of employees who are eligible for retirement, thus encouraging more voluntary separations via early retirement.

Under an early retirement authority, the basic age and service requirements are reduced to 20 years of federal service at age 50 or 25 years of service, regardless of age. By offering these short term opportunities, employees can receive an immediate annuity years before they would otherwise be eligible.

Note: Under Public Law 108-136, the Defense Department has permanent authority to offer early retirements without first seeking OPM approval. However, other policies regarding the offering of early outs generally apply.

Automatic Transfer Of Fehb

Medicare Advantage Options Available to Federal Retirees

You will need to fill out Standard Form 3107 to apply for retirement with an immediate annuity.

OPM should automatically transfer your FEHB coverage as part of your retirement application process. While you should not have to take any steps to continue FEHB, every case is different, and it may still be a good idea to contact OPM to ensure you will maintain your benefits.

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Retirement Plans For Employees With Federal Benefits

Extension employees with Federal benefits participate in the Civil Service Retirement System , the CSRS Offset Plan, or the Federal Employees Retirement System .

The Civil Service Retirement System is a defined benefit, contributory retirement plan where the employee and employer make contributions into a pool of funds from which members receive a retirement income based on a benefit formula. CSRS benefits are based on your “high-3” average pay and the years of service. Under the general formula, 30 years of service will provide 56.25 percent of the “high-3” average salary. You contribute a percentage of your pay to CSRS. You generally pay no Social Security retirement, survivor and disability tax, but you must pay the Medicare tax. Cooperative Extension matches your CSRS contributions. Since 1983, CSRS has been a closed system that allows for current member participation only, i.e., no new enrollments are available.

Certain Extension employees participate in the CSRS Offset Plan. When you retire as CSRS Offset, you receive full CSRS benefits until you are eligible for Social Security benefits, generally at age 62. At that time, your CSRS benefit is offset by the portion of your Social Security benefit that represents the period of time you were covered by both CSRS and Social Security.

Federal Retirement: Regular Eligibility

Age
Minimum Retirement Age* 30 years

*FERS Minimum Retirement Age is a specific age between 55 & 57, based on the year you were born.

Employee Counseling And Assistance Program

The Employee Counseling and Assistance Program provides a helping hand for dealing with personal problems and stresses. ECAP offers diverse counseling services such as alcohol and drug abuse, bereavement, crisis intervention, emotional distress, job performance, family issues, separation and divorce, and much more.

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Flexible Spending Account And Health Savings Account

Federal employees are eligible to participate in flexible spending accounts offered through FSAFEDS . There are two types of FSAs offered to federal employees:

Health care FSA and

Dependent care FSA .

Upon the death of an employee in federal service, both the HCFSA and DCFSA will cease. A surviving spouse is not permitted to use any remaining funds left in either FSA to reimburse eligible health care and dependent care expenses. Any remaining HCFSA and DCFSA funds will be lost upon the employees death unless these expenses were incurred before the employees death.

The surviving spouse of a deceased employee or retiree who met the requirements to contribute to a health savings account will be able to continue contributing to the HSA under the following conditions:

The surviving spouse was named as the beneficiary of the deceased employees/retirees HSA

The surviving spouse meets the requirements to contribute to an HSA, namely being enrolled in a high deductible health plan offered through the FEHB program and

Not enrolled in Medicare. Once ineligible to contribute to an HSA, the surviving spouse can continue to make tax-free qualified withdrawals to pay qualified medical expenses. This includes deductibles, copayments and coinsurance, being reimbursed for Medicare Part B monthly premiums and to pay long-term care insurance premiums.

Special Benefit For Some Fers Who Retire Before Age 62

Federal Employee Retirement Health Benefits and Medicare

Have you heard about the FERS Supplement?

Its an important benefit for FERS planning to retire before age 62 but its so unknown, its practically a secret.

The FERS Supplement is also called the Special Retirement Supplement or SRS. It is designed to help bridge the money gap for certain FERS who retire before age 62. It will supplement your missing Social Security income until you reach age 62.

But not all FERS are eligible to receive the Supplement.

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Financing Pension Benefits For Federal Employees

As of September 30, 2017, the CSRDF had net assets of $908.7 billion available for benefit payments under both CSRS and FERS. At the same time, the civil service trust fund had an unfunded actuarial liability of $968.1 billion, with $812.5 billion in unfunded liability attributable to CSRS and $155.6 billion in unfunded liability attributable to FERS.31 Federal law has never required that employee and agency contributions must equal the present value of benefits that employees accrue under the CSRS. In contrast, the FERS Act requires that the benefits accrued each year by employees must be fully funded by contributions from employees and their employing agencies.

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What Elections Can I Make When I Retire To Provide A Survivor Benefit For My Spouse

In the event of your death, you can make one of the following elections:

  • No survivor benefit
  • Whether the other sources of income are protected against inflation with cost-of-living adjustments
  • Your spouse’s need for continued coverage under the Federal Employees Health Benefit program

There’s an opportunity to increase survivor benefits within 18 months after the annuity begins. However, this election may be more expensive than the one you make at retirement.

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Federal Employees Dental And Vision Insurance Program

The Federal Employees Dental and Vision Insurance Program is available to eligible federal employees, annuitants and survivor annuitants. Employees are eligible to enroll in dental and/or vision insurance if they are eligible to enroll in the Federal Employees Health Benefits program . Annuitants are also eligible for dental insurance and/or vision insurance offered through FEDVIP. Dependent children under the age of 22 are also eligible to be covered under the FEDVIP.

Under the FEDVIP, three types of enrollment coverage are available:

Self only

Self plus one eligible family member

Self and family .

There is no requirement that the deceased employee or retiree must have been enrolled in the FEDVIP at the time of his or her death in order for surviving family members to enroll in the FEDVIP. The only requirement is that a surviving spouse receive a CSRS or FERS survivor annuity. If that is the case, then the surviving spouse can enroll in the FEDVIP during a FEDVIP open season. The FEDVIP open season coincides with the FEHB program open season held annually from the second Monday of November through the second Monday of December.

A surviving spouse can include children under the age of 22 as part of the FEDVIP enrollment. FEDVIP plan changes including disenrollment can be made by the surviving spouse during the annual FEDVIP open season.

How Is The Amount Of My Benefit As A Former Spouse Determined

Federal Employees

A monthly survivor annuity may be payable to a former spouse after the death of the employee or annuitant if it is provided by a court order or the annuitant’s election.

If the survivor annuity is based on an annuitant’s election, the amount is determined in the same way as the amount due to a current surviving spouse. However, if the employee has remarried, then this election can only be made if the current spouse consents to it.

The amount of a court-ordered survivor annuity is based on the court order. A court order may provide the maximum survivor annuity, a lesser amount, or a fraction of the maximum survivor annuity.

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Early Federal Retirement And Social Security

Federal employees who retire early under FERS and do not continue earning wages need to be aware of the impact to their Social Security benefits.

Congress created the Federal Retirement Employee Retirement System FERS in 1986 and on January 1, 1987, it became effective. It is a retirement plan that provides future benefits from three different sources. Employees covered will retire with payments from a FERS Basic Benefit Plan, Social Security, and the Thrift Savings Plan .

Human Resources at your federal agency can provide you with an estimate of your FERS pension. The TSP has various calculators and resources to help you project future income options from your TSP account balance, but what about your Social Security benefit?

Fers Service Credit Payment

What is Redeposit Service?

If you leave Federal service for more than 30 days, you may request and receive a refund of the retirement contributions you have paid into the FERS retirement system. When you receive this refund the period of service represented by the refund is now called Redeposit Service.

Who can make a Redeposit?

A FERS employee who receives a refund of FERS retirement contributions may not make a redeposit. A FERS employee who receives a refund of Civil Service Retirement System , CSRS Interim, or CSRS Offset retirement contributions may make a redeposit, but only under certain conditions.

  • If you applied for the refund of CSRS, CSRS Interim, or CSRS Offset contributions prior to automatic coverage or transfer to FERS, you may make a redeposit.
  • An employee who transfers to FERS with eligibility for a CSRS annuity component may make a redeposit for CSRS service that is included in the CSRS annuity component.
  • If you do not have a CSRS annuity component, you may make a redeposit for SRS/CSRS Offset service only if you applied for the refund of contributions before you transferred or became covered by FERS. FERS redeposit rules apply.

Why make a Redeposit?

Who are employees with a CSRS annuity component?

You will have a CSRS annuity component if you elected to transfer to FERS and you had at least five years of creditable civilian service under CSRS and/or FICA prior to electing FERS.

How much will it cost?

How much is the interest?

How to make a deposit?

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Compare Investment Options For 2022

3. If an individual younger than FRA during 2022 and receiving Social Security monthly benefits loses some of their benefits as a result of having excess earned income, there is some good news. About one year after the individual reaches FRA, the SSA will recalculate and increase the individuals monthly benefit to take into account those months in which the individual received no benefits or reduced benefits as a result of losing these benefits due to excess earned income.

4. Any earned income subject to Social Security taxes that was earned after an individual starts receiving Social Security retirement benefits may increase the individuals lifetime Social Security average earnings, thus increasing their monthly benefits. This is because the SSA as a rule annually recomputes an individuals Social Security retirement benefits based on the individuals 35 years of highest Social Security earnings, no matter which years those earnings occurred. The higher earnings post-federal retirement may increase a federal retirees retirement benefits as the retiree continues to work and has higher earnings compared to their earnings during their earlier working years.

Unused Sick Leave Credit For Fers

Costly Mistakes Federal Employees Make At Retirement

The National Defense Authorization Act of 2009 changed the way unused sick leave is credited under the Federal Employee Retirement System .

The NDAA provides that FERS employees receive service credit toward the annuity computation based upon a percentage of the sick leave balance at retirement or death, which depends on the date the entitlement to the annuity began:

50 percent in the case of an annuity entitlement based on a separation from service from October 28, 2009 through December 31, 2013 and 100 percent in the case of an annuity entitlement based on a separation from service occurring on or after January 1, 2014.

CBP employees who are covered under FERS and elect to retire any day effective now through December 31, 2013 can expect to receive credit for half of their unused sick leave balance towards their retirement benefit. Employees who retire on or after January 1, 2014, can expect to receive service credit for their entire unused sick leave balance.

CBP employees covered under FERS may choose to voluntarily retire on any day of the month however, they should keep in mind that their annuity will commence the first day of the following month. For example, if an employee chooses to retire anytime during the period of January 1 – 31, 2014, his/her annuity will commence on February 1, 2014. This employee could expect to receive his/her first interim annuity payment approximately 60 days from the date of retirement.

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Federal Employees’ Group Life Insurance

The federal government established the Federal Employees’ Group Life Insurance Program in 1954.

Basic Insurance: FEGLI offers Basic Life Insurance that is equal to your annual basic pay, rounded to the next higher $1,000, plus $2,000. So for example, if your annual salary is $48,108, your insurance would first be rounded to $49,000, then have $2,000 added, making your basic life insurance coverage $51,000. In most cases, if you are a new federal employee, you are automatically covered by basic life insurance and your payroll office deducts premiums from your paycheck unless you waive the coverage. The cost of Basic Insurance is shared between you and the government. Your age does not affect the cost of Basic Insurance.

Optional Insurance: You can also get three types of optional insurance:

  • Option A, Standard in the amount of an additional $10,000 of coverage.
  • Option B, Additional in an amount from one to five times your annual basic pay .
  • Option C, Family provides coverage for your spouse and eligible dependent children in multiples from one to five. Each multiple is equal to $5,000 for your spouse and $2,500 for each eligible child.

You must have Basic Insurance in order to elect any of the options. Unlike Basic Insurance,

  • you do NOT get any Optional Insurance automatically you must submit Standard Form 2817, Life Insurance Election to enroll in the coverage.
  • you pay the full cost of optional insurance, and
  • the cost is contingent upon your age.

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