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Federal Retirement and Benefits

Federal Retirement and Benefits . Presented by Josephine Harris Human Resources Specialist U. S. Department of Agriculture September 2006. Federal Retirement Plans. Civil Service Retirement System (CSRS) Civil Service Retirement System - Offset (CSRS Offset)

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Federal Retirement and Benefits

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  1. Federal Retirement and Benefits Presented by Josephine Harris Human Resources Specialist U. S. Department of Agriculture September 2006

  2. Federal Retirement Plans • Civil Service Retirement System (CSRS) • Civil Service Retirement System - Offset (CSRS Offset) • Federal Employees Retirement System (FERS)

  3. 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

  4. 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

  5. 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

  6. 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

  7. Retirement Eligibility CSRS • CSRS Optional Age 62 Years of Service 5 60 20 55 30 • CSRS Special Option, Early Option, Discontinued Service Age 50 Years of Service 20 Any Age 25 • Disability Any age with 5 years of service • Deferred Age 62 with 5 years of service

  8. Retirement Eligibility FERS • FERS Optional/Immediate Age 62 Years of Service 5 60 20 MRA 30 MRA 10 • FERS Early Option, Discontinued Service Age 50 Years of Service 20 Any Age 25 • Deferred Retirement Age 62 Years of Service 5

  9. Retirement Eligibility OPM makes the final determination on: • Creditable Service • Retirement eligibility • Annuity amount

  10. 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

  11. Retirement Planning • Gather information about other retirement options • Obtain information about survivor benefits • Obtain information about decisions that cannot be changed after retirement

  12. Retirement Planning • Request retirement/benefit estimates • Review official personnel folder for Designation of Beneficiary forms • Decide when you can afford to retire.

  13. Retirement Application • Review the retirement application • Meet with the agency Retirement Counselor • Complete the retirement application selecting the appropriate family/survivor benefits

  14. 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

  15. 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

  16. 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

  17. 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

  18. 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

  19. 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

  20. Survivor Benefits • Widow or Widower • Former Spouse • Dependent Children

  21. 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

  22. 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

  23. Contacts • opm.gov • josephine.harris@ars.usda.gov • csrees.usda.gov/about/human_res/ cesguide/ceshr_index.html

  24. Open Discussion

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