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Information on this page is provided by Roseanne Jefferson.
Roseanne is a retired USPS employee with an extensive background in USPS
retirement, disability retirement, OWCP, EEO, Labor Relations and HR.
She conducts individual and group counseling and is able to
comprehensively discuss the pros and cons of employees who are on OWCP,
disability retirement and regular retirement. Roseanne will be happy
to answer your postal retirement questions. Contact Roseanne at
roseanne.jefferson@icloud.com. |
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Postal Retirement
Q&A May 2013 |
Good Day Postal Employees!! I want to
thank all of you out there in
Postalmag world, for your continued
prayers, well wishes and concern
expressed for my daughter in her fight
with breast cancer. We thank you for
your prayers as we continue chemo, and
this long road ahead.
A few
months ago, I had the pleasure of
reading through a book that was sent
to me to review; since I write a
column with many references to
retirement. The author James (Jim)
Brass has written a book that I
thought is really an eye opener, for
those who are invested in TSP, or
really any 401K type of entity. The
book is titled "How to Make Sure Your
Money Lasts In Retirement". In doing
retirements all over the country, I
have seen figures in TSP from "are you
kidding me" to "ARE YOU KIDDING ME"!!
One of the questions I get many times
is about TSP & how to "figure" the
money; or how much is ENOUGH!!. This
book gives ranges from $200,000 and
higher, W/and without COLA additives
and many different percentage return
on investment figures. I recommend
that you read this well written book
that gives tips and information about
your money in retirement. In the back
of the book it says Made in the USA,
Charleston, SC 11 October 2012. The
author may be contacted at
howtomakeitlast@gmail.com. This is one
of those books, written well,
understandable, that may help open
your eyes to financial reality.
Q 1. Dear Roseanne, I am becoming
close enough to retirement to begin to
figure out that everyone I ask or talk
to about retirement has a different
story. I have called our local
district office and asked to speak to
someone that could explain what and
how much life insurance I will have
when I retire. They told me to call
shared services in North Carolina. I
did call, but I could not get any
answers to my question about life
insurance, and what I would have in
retirement. When I got my last
paycheck, it looked like the amount
they are taking out of my check has
doubled. If this insurance is a good
deal, then I will keep it. But if it's
not should I cancel it? I am FERS with
28 years and 3 years military. I am
looking for an early out, like
everyone else. I would appreciate any
opinion you have on this. I have read
your column for a couple of years, and
know someone you spoke to on the
phone. BTW, he was amazed you called
him�Thanks for your time, LST.
A 1. Hi LST, I hear ya!! That is
why I write this column�.it can be
information overload; So much
(relative to personnel matters) is
left for you to decide, with no real
understanding of what you are choosing
(or why). And as I always say,
everyone is a little different. There
is no 1 real answer fits "all" every
time. It really begins with when you
are hired and what insurance options
you took during (orientation /
probationary period) what I call "the
formative years" in the post office.
So strictly speaking on FEGLI
Insurance Options, A - B - C, the
premiums are based on your age. These
insurance (Options A,B,C are NOT the
"benefit", as it relates to retirement
�benefits�), as you are paying full
price�.or based on your age. Now
understand that when you were hired,
no matter what was your health
condition, you had life insurance
coverage (without a physical). Your
benefit insurance is the Basic Life
Insurance (in which you don't pay for,
and never have, as an employee). You
didn't say but that BIG $$ change,
means to me you turned 60, recently.
So now, what do you? Right�'Well, KNOW
THIS FIRST�..NO ONE takes OPTION B
into retirement unless they are very
very sick. Every 5 years, the premium
nearly doubles. So this is a very
expensive insurance as you age, BUT,
really has been expensive all along.
What do I mean by expensive all
along?�because all the time we could
have been paying on an insurance (all
the years while we were young and
generally healthy, we could have
gotten a life insurance at a "decent"
rate. Now we are older so the rate for
even a 100G policy can be pretty
expensive. Depending on health issues,
some potential retirees choose to keep
the expensive Option B due to health
and knowing any life insurance could
potentially be as expensive as Option
B can be. You may NEED to keep Option
B, or choose another policy. But read
below before you do that�.
You
asked for my opinion so here it is: I
look at it this way "you don't want to
be insurance rich and monthly poor".
Insurance is for burial expenses�not
paying off a house; not sending a
grandkid to college�but for final
death expenses, so that is not a
financial burden on your family. So
WHEN you look at it that way, really
only Basic Life insurance (which is
the best deal) is what you should take
into retirement. If you are married,
the spousal annuity should be
sufficient�(the typical response I get
for having Option B is so the "spouse"
has something to live on). If you do
your retirement correct, the spouse
will have something to live on. I hope
this has helped given you some real
"options" as it relates to FEGLI
Options A, B, and C. Roseanne
Q
2. Hi Roseanne, I'm just a little
confused about the supplemental social
security. I am a 51 years old and
under FERS with 27 and 8 months of
service. If I would retire this year
would I still receive the supplemental
when I reach 56 years of age? Also I
do believe that I have read in the
past that if early out is offered
(fingers crossed) that I would receive
the supplemental right away and not
wait until age 56? Thank you for any
info on this. It is so important to
know what will all be available with
such important retirement decisions
and I am so thankful to have found
you!
Also more importantly I
have been praying for you and your
family that your daughter will be ok.
MGM
A 2. HI MGM, Thank you for
the prayers concerning my daughter. I
got back to Ohio yesterday, so I am
here sitting with her, as I read my
emails. I am so grateful for the
prayers of those who read my column.
Let's talk about the supplemental
payment from FERS (not Social
Security). There is an eligibility
issue related to the Special
Supplement. You must meet the criteria
to even be eligible for it. In the
example above, you are not eligible.
Again, never a one stop answer fits
all because mostly, and not being
funny, you really don't know HOW to
ask the question or even the knowledge
sometimes to know a question needs to
be asked.
SO here is the
skinny:
Regular Retirement (age
MRA & AT LEAST 30 yrs of service; OR
age 60 & at least 20 years of service;
OR age 62 w/5 yrs of service. ELIGIBLE
FOR SPECIAL SUPPLEMENT
MRA + 10
Retirement You must have at least 10
years of credible federal service AND
be AT LEAST at your MRA. NOT ELIGIBLE
FOR SPECIAL SUPPLEMENT �.EVER!
Disability Retirement You must have at
least 18 months of credible federal
service & BE APPROVED BY OPM based on
medical issues. NOT ELIGIBLE FOR
SPECIAL SUPPLEMENT..EVER!
Early
out Retirement You must have 25 years
of credible service at any age; OR age
50 w/ at least 20 years of credible
service. ELIGIBLE FOR SPECIAL
SUPPLEMENT IF AT MRA, IF NOT AT MRA,
WHEN YOUR TURN YOUR MRA YOU GET THE
SPECIAL SUPPLEMENT
MANY TIMES,
folks try to help each other out by
giving them information that they know
someone had told them. And I
understand trying to help, who
wouldn�t. But each case is "typically
unique" in itself�sort of an oxymoron.
Just change a few things in your email
and I could have given you a totally
different answer. But now you got the
real information and can make a better
informed choice, should you be
presented with the possibility of an
early out. The type of retirement you
were talking about was the MRA+10, and
that is such a "rip-off", you
practically get nothing after the age
reduction, AND really only makes sense
under very harsh issues, and so I am
hoping that is not the way you were
going�TRUST ME ON THIS!! This is why I
write a column�to warn folks of the
choices they are given, could very
well not be what is best for you, but
you wouldn't even KNOW it until after
you did it and retired. Take care,
Roseanne
Q 3. Hi Roseanne!
First let me say that my family is
keeping your family in our prayers for
as long as it takes. My question has
to do with retirement. If I apply for
a disability retirement from the
postal service can I also apply for
S.S. disability? Thank you D
A
3. Hi D, First ****IF YOU ARE A FERS
employee***: you MUST file for Social
Security disability retirement in
"conjunction" with filing for FERS
disability. If you look on the
retirement form (SF 3107), you will
see where it "identifies" that SS
disability must be filed, (and they
want proof from SS..either the
"confirmation number" if you go
"on-line" to file or paperwork).
Additionally when you file for FERS
Disability Retirement, the form SF3112
must be done in conjunction with the
SF 3107. If you are a CSRS employee,
there is NO requirement to file for SS
disability because the "theory" is
that if you are a CSRS employee, you
don't have enough SS credits to EVEN
apply for SS Disability. Roseanne
R 3. Thank you very much Roseanne
!!
Q 4. Roseanne: I retired
January 31, 2013. My question is on
the FERS supplement. What is the
waiting time on this supplement? Do I
need to fill out any other paperwork
for this or do I just wait till I hear
from OPM? My annuity interim amount is
around $900.00 a month after taxes.
Thank You RLA
A 4. Hi RLA,
First the Special Supplement has it
"own" little time frame going on.
Provided you are eligible for the
Special Supplement ( and I will assume
you are for the purposes of
responding), the supplement seems to
come in about the time that your
retirement is completed (that would be
around 70-90 days). OPM is the
initiator of the Special Supplement,
and they ARE who PAYS you the special
supplement. Any papers to be filled
out will be generated to you by OPM.
And yes, it is sort of a waiting
game�.but eventually all the kinks are
worked out and you will begin to
receive your special supplement. And
remember this will stop the month and
the year your turn 62. Roseanne
Q 5. Am hoping that your daughter
is doing well...Illness of this
magnitude is SO hard to deal with (esp
being your own child). I had FMLA for
15 years, and of course it's been
denied due to new "restrictions". Can
deal with that. My question is: can I
call in sick everyday for a month
(prior to retirement) and not be
penalized? I would of course, not go
to work, so would not have to provide
a Dr's statement. Will this harm me in
anyway? From what I understand, I'll
be paid for my sick leave when I
retire, so why not take it BEFORE I
retire? Same, same, in other words. Of
course, I don't want to jeopardize my
retirement...Please advise (when you
are able). Bless you for the service
you provide. MT
A 5. Hi M I am
so glad you wrote before you did all
this!!! Wow�.if I could tell you how
many times I hear an email like
yours��.THAT IS SO PROFOUNDLY WRONG it
makes me shake!! Now sometimes you
guys get your words screwed up, and
mean something entirely different than
what you wrote�But what you wrote is
just flat out WRONG!! You are NOT PAID
FOR YOUR SICK
LEAVE����.EVER��.EVER��EVER!! Your
sick leave if CSRS is calculated and
then (+ADDED) to the overall years,
months and days that you have worked
(credible service) in the government.
Those years, months and days are used
to calculate your monthly pension,
annuity (whatever you want to call
it). If you are a FERS employee and
you retire prior to 2014, what the
sick leave balance is calculated and
then reduced by 50%, and then those
years, months and days are used to
calculate your monthly annuity. In
2014 the sick leave will be applied at
100% just like CSRS. So that part is
cleared up. What you DO get paid for
is your EARNED annual leave (not sick
leave). Nothing over 440 for a craft
and 560 for EAS. Meaning if you
carried over leave, then spent an
entire year and did not use any annual
leave, and then the next year retire
and still not use leave, you still
will only be paid for what the
maximum..(there are a few caveat's to
that..but that is the most "typical
information".
So with that
being said about sick leave and annual
leave�.let's really talk about what
you are trying to do. You want to USE
your sick leave for one month prior to
your retirement. I assume you know you
have 20 days�(or need 20 days of sick
leave for a whole month�you will be
able to reduce that number if the
month you retire has any holidays. So
20 days is also equal to 160 hours�
ALL THAT BEING SAID�.YOU ASKED AND I
AM GOING TO TELL YOU�DON'T TRY THAT!!
At least not the way YOU want
to�.you're leaving right, your are
retiring, so!!!�spend the CO-PAY!!!
YOU know you must get a doctor to
"affirm" you have�.I don't care,
whatever your sickness is, if you are
going to try to burn SL. To think that
you would try to just roll out�no call
in; no doctor�s note; nothing�they
will EAT YOU UP!! Calling in everyday
is just going to piss them off, and
they have the RIGHT to discipline you,
which could "delay" your retirement
moving at a normal pace. I am telling
you this from my perspective (wearing
the hat) as "Manager of HR", which is
why you should take my advice, I am
right, at least from a management
view. As a fellow employee, future
fellow retiree, and as Roseanne�you
have worked too long to get TO
retirement�do it the right way�I do
know what I am talking about. Thank
you for your prayers for my daughter.
Till we speak
again���Roseanne |
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