 BENEFIT INSIGHTS
> Frequently Asked Questions
Glossary of Terms
Privacy Policy
TSP
Is there a minimum age needed to participate in the catch-up
program?
What are my withdrawal options?
Social Security
What is the windfall provision?
How does an employee become eligible for social security
benefits?
How much Social Security benefits can a divorced
spouse receive?
FERS
Are employees required to contribute to the basic annuity?
Is it to the employees’ advantage to make a FERS
deposit?
If a CSRS employee transfers to FERS, what happens to
the CSRS service performed prior to the date of transfer?
May an employee make a deposit after retirement?
When is an employee considered covered under
the special group provisions of law enforcement officers
and firefighters?
FEGLI
What happens to my FEGLI coverage if I leave Federal
employment and then decide to come back?
What if my life insurance is converted into a private
plan when I leave Federal service?
What happens to my insurance when I go into a “leave without pay
status” (LWOP)?
What is the 31-day temporary extension of coverage?
Can I convert Option C when I no longer have any eligible
family members?
CSRS
What is the CSRS Offset Plan?
Who is covered by the Offset Plan?
Do law enforcement officers, firefighters and air traffic
controllers have a mandatory retirement age?
What happens when a special group employee does not
meet the service requirement upon reaching the mandatory retirement
age?
Are CSRS annuities adjusted for inflation after retirement?
TSP
Is there a minimum age needed to participate
in the catch-up program?
Participants must be age 50 or older during the calendar
year in which the catch up contributions are made.
What
are my withdrawal options?
The TSP provides several ways to withdraw from your account:
- A partial withdrawal of account in a single payment
- A “mixed
withdrawal” which is a full withdrawal of an
account by any one, or combination, of the following
methods:
- Single payment
- Series of monthly payments
- Life annuity
Social Security
What is the windfall provision?
If you will receive a pension from a job where you did
not pay Social Security taxes and have earned enough Social Security
credits to be eligible for retirement or disability benefits, a modified
formula may be used to calculate your benefit amount. This modified
formula will lower your Social Security benefit, but will not affect
existing pensions.
How does an employee become eligible for social
security benefits?
- Through employment under Social Security
before entering civil service.
- While employed as a temporary
employee, with deductions taken from pay for Social
Security.
- Through part time employment under Social
Security, while a full time career federal employee.
- By
operating a personal business apart from full time
federal employment.
- Through employment or self-employment
under Social Security after retirement or separation
from a civil service position.
How much Social Security
benefits can a divorced spouse receive?
A person who is divorced after at least 10 years of marriage
keeps certain benefit rights on their former spouse’s Social
Security record. In order to receive these benefits, a divorced spouse
must be at least age 62 and the former spouse must be eligible for
benefits, but not necessarily receiving them. The maximum benefit
is 50% of the benefit the worker would receive at full retirement
age. However, benefits paid prior to full retirement age of the spouse
are reduced based upon his/her age at the time benefits are received.
FERS
Are employees required to contribute to the basic annuity?
Yes. Automatic contributions of .8 percent of basic pay
are made for all FERS employees to the retirement fund.
Special group employees contribute one-half percent more.
Is
it to the employees’ advantage to make a FERS deposit?
Generally, yes. Payment should be made if an employee
will not receive credit for the periods of service in
determining eligibility to retire or in computing basic
annuity.
If a CSRS employee transfers to FERS, what happens
to the CSRS service performed prior to the date of transfer?
If the transferee has a CSRS component, all service included
in the CSRS element is computed under the CSRS general
formula. A transferee has a CSRS factor if he or she
has five or more years
of CSRS-only service or a combination of CSRS-only and
FICA-only service. CSRS Offset and CSRS interim service
are not included in
the CSRS component. Military service cannot be used to
determine if a transferee qualifies as a CSRS service
element.
May an employee
make a deposit after retirement?
A deposit cannot be made after final adjudication of
an annuity claim. However, an employee need not postpone
filing an application for retirement because a deposit
is due. OPM automatically
contacts retirees who owe FERS deposits to advise on
the amount of deposit due and the potential effect on
their annuity if one elects
not to pay the deposit amount. If a retiree wishes to
make payment he or she may do so at this time.
When is
an employee considered covered under
the special group provisions of law enforcement officers
and firefighters?
An employee is covered under the special group provisions
if he or she occupies a position classified as “rigorous” for
at least 3 years. The employee may be transferred to
an administrative or supervisory position in either law
enforcement or firefighter
functions and still be covered under special provisions.
FEGLI
What happens to my FEGLI coverage
if I leave Federal employment and then decide to come back?
Upon return to Federal employment after a break in service
of less than 180 days, your human resources office will
automatically enroll you in the same coverage that was
held before departure of
your prior position. In order to elect other coverage,
standard qualifications will need to be met (open season,
physical exam or life event).
What if my life insurance is converted
into
a private
plan when I leave Federal service?
Any insurance policy purchased under the conversion privilege
is a private business transaction between you and the
insurance company. The cost of the individual policy
is determined by the insurance
company and is based on your age and class of risk. If
you return to Federal service and have previously converted
your FEGLI coverage
(including as a reemployed annuitant), you do not have
to cancel your conversion policy. You can continue the
conversion policy and
have FEGLI coverage as an employee.
What happens to my
insurance when I go into a “leave without
pay status” (LWOP)?
Life insurance coverage continues for up to 12 months
in a LWOP or non-pay status. You do not have to pay any
premiums while you are on LWOP unless you are receiving
benefits from the
Department of Labor, Office of Workers' Compensation
Programs. The life insurance ends at the end of the 12
months with a 31-day extension of coverage and a right
to convert to an individual policy.
What is the 31-day
temporary extension of coverage?
When life insurance is terminated, except when stopped
voluntarily by cancellation, the coverage automatically
continues for 31 days after the termination date. Premiums
are not paid during
this time.
Can I convert Option C when I no longer have
any eligible family members?
No. Option C cannot be converted when family members
lose eligibility. Option C can only be converted when
you separate from service. If you do not want to convert
the coverage when
you separate, your family members covered under Option
C are eligible to convert
their coverage to an individual policy. Eligible family
members can also convert their coverage upon your death.
Human resources can
provide the required Notice of Conversion Privilege (SF
2819) form.
CSRS
What is the CSRS Offset Plan?
The CSRS Offset Plan is essentially the Civil Service
Retirement System, modified for rehired employees who
remain in CSRS but who must be covered by Social Security.
Who
is covered by the Offset Plan?
Employees rehired into Federal Service on or after
January 1, 1984, who have a break in covered service
exceeding 1 year, and who meet one of the following tests:
- Had
a break in service after 1-31-86, had at least
5 years of creditable civilian service as of last
break in service, and have at least 1 day covered by
CSRS; or
- Had 5 years of creditable civilian service
as of 12-31-86, regardless of leave after that date.
Do law
enforcement officers, firefighters and air traffic controllers
have a mandatory retirement age?
Yes. LEO’s and firefighters must retire at age 57 if they have
20 years law enforcement/firefighter service. Air traffic
controllers appointed by the Department of Transportation
after May 15, 1972
or appointed by Department of Defense after September
11, 1980, must retire at age 56.
What happens when a special
group employee does
not meet the service requirement upon reaching the mandatory
retirement age?
A LEO or firefighter who has reached the mandatory
retirement age without completing 20 years of service
may remain in their position until the service requirement
is completed.
(They must be separated
no later than the end of the month in which the necessary
20 years is reached.) However, an air traffic controller
is subject to mandatory separation even if he or she
has not acquired sufficient
years of air traffic controller service to qualify
for retirement under the
special provisions.
Are CSRS annuities adjusted for
inflation after retirement?
Retiree annuities are adjusted according to the Consumer
Price Index (CPI) formula. If inflation, as measured
by the CPI, increases by 3 percent in one
year all CSRS retirees will receive
a cost-of-living adjustment (COLA) in that amount.
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