federal retirement and benefits presented by josephine harris human resources specialist u. s....
TRANSCRIPT
Federal Retirement and Benefits
Presented by Josephine Harris Human Resources Specialist
U. S. Department of AgricultureSeptember 2006
Federal Retirement Plans
Civil Service Retirement System (CSRS)
Civil Service Retirement System - Offset (CSRS Offset)
Federal Employees Retirement System (FERS)
Federal Retirement Plans
The CSRS, CSRS Offset, and FERS
retirement plans are unique: Agency and employee contributions are
different Retirement eligibility is very different Annuity sources are different
CSRS Retirement Plan
Employer and employees pay into the CSRS fund. Employees also pays Hospital Insurance Tax (HITS/Medicare)
Monthly CSRS Annuity
Medicare Coverage Part A at age 65
CSRS Offset Plan
Employees are covered by both CSRS and Social Security
Credits are earned under CSRS and have the portability of Social Security
Monthly annuity will be reduced or offset when the employee is eligible for Social Security benefits (usually age 62)
Medicare Coverage Part A at age 65
FERS Retirement Plan
Employer and employees pay into the FERS fund. Employees also pay Social Security and they participate in the Thrift Savings Plan (TSP)
FERS monthly annuity and an annuity supplement payable until age 62
Full Medicare coverage at age 65
Retirement Eligibility CSRS CSRS Optional
Age 62 Years of Service 560 2055 30
CSRS Special Option, Early Option, Discontinued ServiceAge 50 Years of Service 20
Any Age 25 Disability Any age with 5 years of service Deferred Age 62 with 5 years of service
Retirement Eligibility FERS FERS Optional/Immediate
Age 62 Years of Service 560 20MRA 30MRA 10
FERS Early Option, Discontinued ServiceAge 50 Years of Service 20
Any Age 25 Deferred Retirement
Age 62 Years of Service 5
Retirement Eligibility
OPM makes the final determination on:
Creditable Service
Retirement eligibility
Annuity amount
Retirement Planning Start 5 years prior to being eligible
Talk to the agency Retirement Officer
Make sure that all of your creditable service is documented and on file.
Make decisions regarding deposit and redeposits if any
Retirement Planning
Gather information about other retirement options
Obtain information about survivor benefits
Obtain information about decisions that cannot be changed after retirement
Retirement Planning
Request retirement/benefit estimates
Review official personnel folder for Designation of Beneficiary forms
Decide when you can afford to retire.
Retirement Application
Review the retirement application
Meet with the agency Retirement Counselor
Complete the retirement application selecting the appropriate family/survivor benefits
Retirement Application
Completed application is processed by the personnel office and forwarded to the Office of Personnel Management (OPM)
Individual Retirement Record will be closed out and forwarded to OPM along with other retirement documents
Retirement Application
OPM will notify the employee and provide a claim identification number when the application is received
OPM will make “interim” payments if the records clearly show retirement eligibility
Government Pension Offset
Spouses’s or Widow(er)’s Benefits
Offset = Two-Thirds the amount of the government pension
FERS and CSRS Offset are Exempt
Windfall Elimination Provision
Affects people who earned a retirement pension from working for a government agency (or an employer in another country), and also worked at other jobs and paid Social Security taxes sufficient to qualify for retirement or disability benefits
Windfall Elimination Provision
Social Security will be reduced if:
You reach 62 after 1985; or You become disabled after 1984; or You first become eligible for a monthly
pension based on work where you did not pay Social Security taxes after 1985, even if you are still working
Military Service
Active duty earnings have been covered by Social Security since 1957
Service credit is different for CSRS and FERS retirement plans
May or may not receive credit for time creditable for military retirement.
Generally there is no offset between Social Security and retired military pay
Survivor Benefits
Widow or Widower
Former Spouse
Dependent Children
Federal Employees Group Life Insurance
FEGLI can be continued into retirement if: Employee is entitled to receive an
immediate annuity Employee has been insured for the 5
years of service immediately before the date the annuity starts
Employees’ insurance has not been converted to an individual policy
Federal Employees Group Life Insurance
Must complete SF 2818 Continuation of Life Insurance Coverage
Elect the amount of Basic Insurance you want after age 65 (or retirement if later)
Choices = 75%, 50%, and
No reduction
Open Discussion