Posted on Tuesday, 26th January 2010 by Dennis DampPrint This Post
Thanks to the 2010 National Defense Authorization Act a number of retirement benefit changes were implemented that will help many federal employees and retirees. Everything from some retirees being able to keep both their annuity and federal check if they decide to go back to work for Uncle Sam as a rehired annuitant , more advantageous part time service annuity computations for CSRS service, actuarial reduced CSRS annuities rather than paying back your earlier withdrawals, to FERS sick leave computations, and more.
There is a little in this bill for everyone and it will be awhile before OPM regulations are published for all programs. These changes can potentially make a significant difference in your annuity calculations and others provide equitable resolutions to long standing problems. OPM issued general guidance on January 12, 2010 in their Benefits Administration Letter number 10-101.
Depositing refunds under FERS (Now authorized)
Until recently, when a FERS employee left government service and withdrew their employee contributions they were not allowed to redeposit their withdrawals if they returned to federal service at a later date. FERS employees irrevocably lost all previous service. Now individuals who are subsequently reemployed can make a redeposit of the amount refunded, plus interest, and receive credit for the reinstated service. Read more about this issue including eligibility dates on our FERS Annuity page.
Part-time service CSRS annuity computations
The two tier system of calculation high three average salary was eliminated for part time employment periods. Prior to this new revision there were two systems used to calculate the average high three years salary for service performed prior to and after April 7, 1986. In accordance with previous law, one high-three average salary was based on the pay actually received and the other was based on pay the individual would have received assuming they worked full-time (the deemed high-three).
Section 1903 provides that the “deemed high-three” average salary will be utilized for all service, regardless of when performed. This revision doesn’t change the other provisions applicable to calculation of annuities involving part-time service. The amendment applies only to annuities based on a separation from service occurring on or after October 28, 2009.
Actuarially reduced annuity under CSRS
CSRS employees who received refunds of retirement deductions for a period of service ending prior to October 1, 1990, may make a redeposit of the refund by actuarial annuity reduction in lieu of cash redeposit. Actuarial reductions are now permitted in lieu of cash redeposit for refunds covering periods of service ending prior to March 1, 1991. The amendment applies only to non-disability annuities based on a separation from service occurring on or after October 28, 2009. Visit our CSRS Annuity page for more information on your CSRS annuity.
We continue to receive job postings from employers seeking to hire part and full time retired federal employees. Check out the new listings on our jobs board for federal human resource specialists, engineers and others. There are also many part time Census jobs available and with the latest changes that allow agencies to rehire federal employees part-time without affecting their annuity, there are many opportunities available.
If you are collecting Social Security and under full retirement age you can still earn up to $14,160 a year without impacting your Social Security benefits. For every $2 over the limit, $1 is withheld from benefits. At full retirement age there are no earnings restrictions.
Learn more about benefits and financial issues from Linda Duncan, our Benefits forum host and visit our Blog frequently at http://fedretire.net to read all forum articles.
Visit our other informative sites
- http://federaljobs.net (Federal Career & Job Center)
- http://federalretirement.net (FREE Retirement Planning Guide)
- http://federalretirement.net/jobs.htm (Retiree Job Opportunities)
- http://fedcareer.info (Career Development Center)
- http://postofficejobs.info (Postal Career Center)
- http://ehsjobs.org (Environmental Health & Safety Job Center)
- http://stolenplates.com (What to do if this happens to you)
- Educational Opportunities (Find educational opportunities in your area)
The information provided may not cover all aspect of unique or special circumstances and federal regulations are subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our reply is not intended nor should it be considered investment advice. Our reply is time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.”
Last 5 posts by Dennis Damp
- Retirement Challenges & Planning Assistance - May 17th, 2013
- Social Security Update, Medicare Concerns, & Retiree Jobs - May 3rd, 2013
- Collecting Social Security While Still Working and CSRS Offset Concerns - April 12th, 2013
- TSP Investment Timing and The Retiree’s Dilemma - April 1st, 2013
- The Sequester’s Many Faces – Furloughs, Pay Freeze, & Fewer Resources - March 13th, 2013
- TSP Annual Statements and Highlights - February 22nd, 2013
- 1099R Statements, Replacement Copies, & Upcoming Changes - February 8th, 2013
- TSP Roth Conversion Update - January 21st, 2013
- TSP ROTH Conversions, Benefits, & Limitations - January 5th, 2013
- Strategies for Increasing Your Retirement Annuity and Income - December 7th, 2012
- Open Season Tips, Direct Deposit Changes, & Retiree Job Opportunities - November 14th, 2012
- Size Matters, Especially in Retirement - October 25th, 2012
Print This Post