The Office of Personnel and Management (OPM) administers both USPS retirement programs - the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS). The CSRS generally applies to employees who received a career appointment before January 1, 1984 while the FERS applies to employees whose initial career appointment was January 1, 1984 or later, and CSRS employees that elected to transfer to FERS. Both systems have the same purposes, however, both operate under a unique set of guidelines and rules.
The following Web sites also have information about your
retirement benefits:
Handbooks
Forms
The following forms can be found at the Office of Personnel and Management Web site:
- (SF 2803) Application to Make Deposit or
Redeposit
- (SF 3102) Designation of Beneficiary (FERS)
- (SF 3106) Application for Refund or Retirement
Deductions
- (SF 3109) FERS Election of Coverage
- (SF 3110) Former Spouse's Consent to FERS
Election
- (SF 3111) Request for Waiver, Extension, or
Search in Connection with Election of FERS Coverage, FERS
More Retirement Information:
Minimum
Retirement Age
The minimum retirement age (MRA) is determined by an individual’s year of birth, as
follows:
Year of Birth - MRA:
Before 1948 - 55 Years
1948 - 55 Years and 2 Months
1949 - 55 Years and 4 Months
1950 - 55 Years and 6 Months
1951 - 55 Years and 8 Months
1952 - 55 Years and 10 Months
1953-1964 - 56 Years
1965 - 56 Years and 2 Months
1966 - 56 Years and 4 Months
1967 - 56 Years and 6 Months
1968 - 56 Years and 8 Months
1969 - 56 Years and 10 Months
1970 and After - 57 Years
Don’t
Believe Your SS Benefits Statement
Author and Source:
Mike Causey's Federal Report
http://www.federalnewsradio.com
For most workers the annual
earnings-and-benefits statements from Social Security are a blessing.
The
statements, which usually arrive a couple of months before your birthday,
tell you how long you've paid into Social Security, the amount, the number
of quarters credit you have (it takes 40 to qualify for a minimum benefit
and 160 or more to qualify for the maximum) and estimates the size of your
Social Security check when you start collecting benefits.
As a
retirement tool the Social Security statements are invaluable. Social
Security represents the primary and often the only retirement benefit for
about half of all Americans.
But for
federal workers, especially the hundreds of thousands still under the old
Civil Service Retirement System, the statements are worthless.
Actually
worse than worthless. Reason? They are misleading. They tell you that you
will qualify for a benefit that in fact you will never see. Why? Because the
statements don't take into account that because you are a fed under the CSRS
system you are subject to the so-called "Windfall Elimination Provision",
known as WEP or Windfall.
The
Windfall formula was devised by Congress years ago because many high-paid
feds were fiddling with the system. They were qualifying for substantial
civil service retirement benefits based on their high salaries and long
service, and also benefiting from the "welfare tilt" in Social Security. It
rewards people who worked and paid into Social Security for a short-time, or
with a low salary, with a higher benefit return. Some of the government
executives were collecting higher Social Security benefits based on work
they had done as teenagers or in low-paying jobs they had before coming into
government. A few were caught in back-scratching deals. Meaning, two feds
"hired" each other to work perhaps doing yard or house work for minimum pay
and minimum Social Security tax. Eventually, they qualified for a higher
benefit based on their low-income, short-service work history.
Congress
lowered the boom and the "windfall" formula was born. In essence it said
that people who didn't pay into Social Security for a full 30 years, who
qualified for an annuity or pension based on non-covered employment would
have their Social Security benefit reduced.
The maximum
reduction for someone retiring this year is $300 per month, because of the
windfall formula. Many feds -- especially those who don't understand its
history -- find it outrageous. Since it also affects many school teachers, a
growing number of House and Senate members want windfall and its evil twin,
the so-called "Offset formula", modified or repealed. Windfall hits the
Social Security benefit earned by a fed. Offset can wipe out the Social
Security spousal or survivor benefit of a fed who gets his or her own civil
service retirement.
Even though
they seemed like a good idea at the time, many people think windfall and
offset have outlived their usefulness and now punish people unfairly.
Federal, postal and retiree groups made an all-out drive during the
Easter/Passover recess to get co-sponsors for bills to modify or repeal
offset and windfall. They are getting close to the magic number that would
guarantee passage. What they haven't gotten yet is a promise of hearings
before the House and Senate committees that deal with Social Security and
taxation matters.
Until
windfall and offset are modified (to exempt a portion of combined federal
and Social Security monthly benefits from the formula) or are repealed
outright, don't make any financial plans based on the benefit statement you
get from Social Security.
22 RETIREMENT TIPS
Many thanks to the APWU OF FLORIDA STATE RETIREE CHAPTER for this information.
-
ANNUAL LEAVE
-
BENEFICIARIES
-
COUNSELING SEMINARS
-
DATE OF RETIREMENT (CSRS)
-
DATE OF RETIREMENT (FERS)
-
GOVERNMENT PENSION OFFSET
-
HEALTH INSURANCE
-
HIGH THREE AVERAGE EARNINGS PAY
-
INCOME PROJECTION
-
INTERIM OPM PAYMENTS
-
LIFE INSURANCE
-
LWOP
-
OFFICIAL PERSONNEL FOLDER (OPF)
-
SICK LEAVE (CSRS)
-
SICK LEAVE (FERS)
-
SOCIAL SECURITY BENEFITS
-
SPOUSAL OPM BENEFITS
-
SURVIVORS BOOKLET
-
THRIFT SAVINGS PLAN (TSP)
-
VERIFICATION OF RECORDS
-
WINDFALL ELIMINATION PROVISION (WEP)
-
YEARS OF SERVICE OPM MAXIMUM P
ANNUAL
LEAVE:
At the time you retire, the Postal Service will
pay you for up to a maximum of only 440 hours of
earned annual leave. You will lose any amount
over 55 days of annual leave (55 days x 8 hours
daily= 440 hours maximum). It should be on your
next scheduled USPS paycheck.
BENEFICIARIES:
Check the information on beneficiaries you have
previously chosen for your Government Life
Insurance, Civil Service Retirement System (CSRS),
Federal Employee Retirement System (FERS), earned
annual leave, and earned compensation. There is a
separate form for each benefit. The order of
beneficiaries is your designated beneficiaries
or if the order is not designated, then the
order is spouse, child/children in equal shares,
parents, executor or estate administrator,
brothers and sisters, or next of kin in that
order.
COUNSELING SEMINARS:
You need to attend a pre-retirement counseling
seminar, if one is available at your USPS agency,
at least five (5) or more years before your
retirement. Many postal agencies only offer one
pre-retirement individual counseling session
within in a three (3) year period after you become
eligible for retirement due to age and years of
service. It’s a crying shame, but that’s the way
things happen. Better yet, you should attend a
National APWU Retirees Department Retirement class
hosted by the APWU Region, State and/or Area
Local/Local or enroll in a three (3) day
National APWU Retirees Department Counseling
Seminar which is being scheduled in each region.
This way you may become an APWU Retirement
Counselor in your APWU Area Local/Local, State or
Region.
DATE OF
RETIREMENT (CSRS):
For voluntary retirements, CSRS annuities should
begin on the 1st, 2nd, or 3rd
day of the month. If you retire on one of the
first three days of the month, your first OPM
annuity check is payable the first day of the
following month. If you retire on any other day of
the month, your first OPM annuity check is payable
the first day of the second month which follows.
If you retire the 4th day through the
last day of any month, for example, August 4th
through August 31, then your first OPM annuity
check is payable October 1st. Waiting
one extra day will cost you one additional month
of OPM annuity pay!
DATE OF
RETIREMENT (FERS):
In the Federal Employee Retirement System (FERS),
voluntary retirements begin only on the first day
of a month. FERS employees should retire on the
last three (3) days of the month, if possible.
For example, if you retire on August 31 under
FERS, your first OPM annuity check is payable
October 1st. Under FERS, retiring on
other days earlier in the month will cost you
extra days of additional OPM annuity pay.
GOVERNMENT
PENSION OFFSET (GPO):
You may also be entitled to benefits based on the
Social Security covered earnings of your spouse or
former spouse. However, this benefit may be
affected by the Government Pension Offset (GPO),
another provision of the Social Security law. For
more information, see Congress & Legislative link
and scroll down to the Legislative Fact Sheet on
Government Pension Offset (GPO). We urge you to
contact your Congress and ask them to Co-sponsor
and support the legislative bills already
introduced in the 108th Congress to
repeal this unfair law.
HEALTH
INSURANCE:
You must be enrolled in your Federal Employees
Health Insurance Benefits (FEHB) Plan program for
a five (5) year period prior to your date of
retirement to continue your health insurance
coverage as a retiree. After you retire, you pay
approximately thirty (30) percent of your health
insurance premium and USPS pays about seventy (70)
percent. This is a big change in the formula you
enjoyed before you retired when USPS paid
approximately eighty-three (83) percent and you
paid about seventeen (17) percent due to the
USPS/APWU collective bargaining agreement.
Welcome to the real world!
HIGH
THREE AVERAGE EARNINGS PAY:
Your high three average earnings pay is figured on
thirty-six (36) months of continuous base pay
only. It does not include overtime, night
differential, Sunday pay, or lump sum payments.
INCOME
PROJECTION:
If you will have any housing cost (mortgage or
rent) or other significant loans/credit card debts
after retiring, you will need approximately eighty
(80) percent of your current USPS salary to retire
comfortably. If you have no rent/mortgage or
other substantial loans/credit card debts after
retiring, sixty (60) percent of your salary will
probably suffice.
INTERIM
PAYMENTS:
Generally, as soon as the Office of Personnel
Management (OPM) gets all your retirement records
from USPS, OPM will provide interim payments
averaging more than eighty-five (85) percent of
your final retirement benefit. Usually, the next
month’s check will be your regular annuity amount
plus a make-up of the remaining amount due from
your first payment. The third OPM annuity check
you receive, if not sooner, should be your regular
monthly annuity amount. OPM will withhold
deductions for federal income taxes, health and
life insurance coverage, and your $2.00 monthly
APWU retiree union dues, provided you have
completed the APWU Retired member Form 1187 and
mailed it back to the National APWU Retirees Dept.
LIFE
INSURANCE:
To keep your Federal Employees Government Life
Insurance (FEGLI) group policy coverage, you must
have been enrolled in the program for the five (5)
years of service immediately preceding your
retirement date or for all service since
your first opportunity to enroll in the program.
LWOP:
The only way LWOP can delay your postal retirement
by reducing your years of service credits is if
you take over six (6) months of LWOP in a calendar
year.
OFFICIAL PERSONNEL FOLDER (OPF):
Get a copy of your Official Personnel Folder (OPF)
from USPS Personnel or Human Resources office at
once, including all military records. Your
retirement is based on the Form 50’s in your
folder. Check your Personnel folder and files
each and every year of your employment. Your
retirement is determined by the highest three
years of your consecutive yearly base pay. There
is approximately a twenty (20) percent error in
USPS record keeping. Your expenses of copying the
personnel records in your folder will save you beg
bucks down the road!
SICK
LEAVE (CSRS):
In CSRS, for every 22 days of sick leave, you are
credited for one month of service. 2080 hours of
sick leave equals one year of credit for CSRS
employees only. Accumulated sick leave can be
used for additional monthly and years of service
for retirement.
SICK
LEAVE (FERS):
If you are in FERS, you get no credit for
accumulated sick leave for extra monthly and years
of service to retire.
SOCIAL
SECURITY BENEFITS:
Telephone the Social Security Administration
1-800-772-1213 or go on line to their web site
www.ssa.gov to ask for a “Request for Earnings
and Benefit Statement” on you to get a record of
your earnings under Social Security, and if you
will be eligible, an estimate of the payment you
may receive. Remember, the estimate you receive
may not include reductions to your Social Security
benefits due to the Government Pension Offset
(GPO) and the Windfall Elimination Provision (WEP).
You should schedule an appointment with your local
Social Security office to personally get an
estimate of your benefits, including any
reductions which may be caused by the GPO and/or
WEP provisions.
SPOUSAL
OPM BENEFITS:
In compliance with the Spousal Equity Act of 1984,
your spouse must agree and sign a notarized paper
for you not to make your spouse a
beneficiary of your OPM annuity. If the spouse
chooses not to be a beneficiary and the annuitant
dies, the spouse cannot get health insurance
benefits coverage!
SURVIVOR’S BOOKLET:
Every potential APWU retiree member should
purchase the APWU Survivors Booklet costing only
$3.00 from the National APWU. This treasure chest
publication allows for personal information to be
stored in one place for your use and your
spouse/family. If you pass away, the information
in this booklet is especially important to you,
but also to your survivor or loved ones.
THRIFT
SAVINGS PLAN (TSP):
You are urged to contribute a maximum deduction to
your Thrift Savings Plan (TSP) to realize a higher
income return on retirement. Retirement for FERS
employees is like a three-legged stool, that is,
FERS, Social Security, and TSP. You cannot
usually afford to retire if you don’t build up
your Thrift Savings Plan account to the maximum.
VERIFICATION OF RECORDS:
All periods of civilian and military service
should be verified in your Official Personnel
Folder (OPF) files. You must take the initiative
on your own to request copies of all your
personnel records and keep these copies in a safe
place where you know where they are located.
Request copies each and every year to update your
files for retirement some day! I bet you can’t
wait to get started!
WINDFALL
ELIMINATION PROVISION (WEP):
Any Social Security Administration estimate of the
payment you may receive is not adjusted for the
Windfall Elimination Provision (WEP), which is a
provision of the Social Security law after 1984
that reduces the Social Security covered benefits
of many former Federal and Postal employees. For
more information, go to the Congress & Legislative
link on this web site and scroll down to Priority
Legislation and Legislative Fact Sheets to read
about how the Windfall Elimination Provision may
affect your retirement. We urge you to contact
your Congress and ask for their Co-sponsorship and
support for legislative bills already introduced
in the 108th Congress calling for the
repeal of the Windfall Elimination Provision (WEP).
We think these bills have a good chance of getting
out of Committees and going to the floor for
serious debate and passage this time around the
horn!
YEARS OF
SERVICE OPM MAXIMUM PAY:
If you have forty-one (41) years and eleven (11)
months of combined service at the time you retire,
you will be paid eighty (80) percent of your high
three continuous years of service. For CSRS
employees, sick leave can increase your OPM
annuity over the 80 percent maximum. FERS
employees do not get any credit for
accumulated sick leave in figuring their
retirement!
Be informed, stay informed. In
knowledge there is
power, in unity
there is strength.
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