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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@yahoo.com. |
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Postal Retirement
Q&A November 2011 |
A HUMBLE THANK
YOU TO ALL OF OUR VETERANS OUT THERE,
WHO HAVE GIVEN UP MUCH TO DEFEND OUR
COUNTRY AND FREEDOM, AS A DAUGHTER AND
WIFE OF A SERVICEMAN, AGAIN, THANK
YOU.
I hear your pain
out there!! It really has been a
roller coaster for the Agency, yes I
mean the Postal Service! That is how
we are referred to on federal
documents, a Federal Agency. That is
how we are categorized. Think about
that for a minute and recognize that
we are the ONLY Agency that is NOT
dependent for funding by citizens'
taxes. NO other Agency makes a profit,
they don't have to, but WE do.....
PLEASE BE AWARE THAT OPEN SEASON
IS COMING UPON US - REVIEW ALL HEALTH
BENEFIT PROVIDERS, AND THEIR SERVICES,
INCLUDING THEIR MONTHLY PREMIUM. THIS
IS PARAMOUNT IF YOU INTEND TO RETIRE
NEXT YEAR (2012), SINCE THAT WILL BE
THE INSURANCE YOU MUST CARRY THE
ENTIRE YEAR, UNTIL OPEN SEASON COMES
BACK IN NOVEMBER 2012.
I have
had many inquires last month about
what happens IF......Due to the
financial situations in the Postal
Service, they may have to be creative
in decreasing staffing. Of course
early out options have taken place,
and yet they are still not at the
numbers needed to downsize the entire
Organization. Below is information
that spells out pretty clearly age &
service requirements and how they
affect the bottom line on your monthly
annuity. These are some of the types
of retirement plans that are not
"Optional" meaning you meet all age
and service requirements; "Disability"
meaning you are disabled for the job
were hired; "Early Out" meaning not
have to meet the ALL the age and
service requirements, but still
meeting a threshold of age and
service.
DISCONTINUED SERVICE -
Age and Service Requirements - AKA
"Involuntary Separation"...not due to
disciplinary issues
Age 50
(with) 20 or more yrs of service
Age ANY (with) 25 or more yrs of
service
If you are
involuntarily separated from your
position and are not given a
"reasonable offer" of another
position, you may receive an immediate
annuity IF you have met the above
age/service requirements.
UNDER
CSRS employees are subject to the 2%
reduction (if under age 55).
UNDER FERS employees are NOT subject
to an age reduction if under THEIR
MRA. However, FERS employees will NOT
receive the special supplement until
they reach THEIR MRA.
DEFERRED
RETIREMENT - If you separate from the
service before you are eligible for an
immediate annuity AND you DON'T apply
are receive a refund of your
retirement contributions, you will be
eligible for deferred retirement
benefits as soon as you reach the age
that corresponds with your age and
service combinations below:
UNDER FERS: --MRA (Minimum Retirement
Age) (with) 30 or more yrs of service
Age 60 (with) 20 or more yrs of
service
Age 62 (with) 5 yrs or more
service
MRA (with) 10 yrs of
service (Reduced) 5% for each yr
(under age 62)
UNDER CSRS: -
You will be eligible for deferred
retirement benefits at age 62
Under this type of retirement for both
CSRS and FERS you WILL NOT BE ELIGIBLE
TO CONTINUE OR REINSTATE YOUR FEHB OR
FEGLI
MRA + 10 RETIREMENT
w/POSTPONED BENEFITS - You may
postpone the receipt of the MRA+10
benefit to a later age to lessen the
reduction. FEHB coverage and FEGLI
coverage may be reinstated when the
annuity commences.
Q. 1
-Greetings Roseanne. Just retired from
PO, last month, and have received '
Overdrawn Annual and/or Sick Leave
Related Debt' invoice from Eagan,
Minn. Will remit immediately. Does
this mean NO final check from the PO?
Was informed final payroll
disbursement will be sent to my last
pay location and they could sit on it
for months. Boy, they don't waste any
time erasing their memory of your
employment, do they. Any suggestions?
I was under the impression I was paid
any annual I didn't take. Thank You in
advance. D
A. 1 -Hi D, This
typically means that (I said
typically) that prior to your
retirement you had some LWOP hours,
and since you did not have any
earnings, the post office paid YOUR
portion of your health benefits and
any other life insurance's you had.
SOMETIMES, they will take this out of
your final check (last pay and all
earned annual leave). Sometimes, they
will make you pay the accounts
receivable that was incurred while you
had no actual hours. I hope this has
helped. Roseanne
Response:
Thank you for responding Roseanne,
your info and advice are always a
lift. Will be reading your articles as
a helpful tool during retirement.
Thanks Again, D.
Q 2.
-Roseanne, If I choose not to elect a
survivors benefit when I retire will
my spouse still have FEHB after I'm
gone? Thanks, B.
A 2. -Hi B,
Absolutely NOT, which is the REAL
reason for taking the spouse into
retirement. Roseanne
Q 2a.-Thanks,What's
the minimum spousal benefit I would
need to take in order to keep her on
my FEHB? I am going to get a private
life insurance policy. I want to
maximize my monthly annuity to cover
the premium. A private life insurance
policy would be much cheaper than
FEGLI in my situation. B
A 2a.
- In order to answer that, it totally
depends on your retirement system,
either FERS or CSRS, because they have
different answers.
Q 2b.- FERS
A 2b.-For FERS employee's (under
the law) you MUST provide her with
either a 100% annuity. However, you
have the option to give her 50% of the
annuity (with the spousal consent..the
form is included in the retirement
paperwork and will have her in front
of a notary acknowledging that you are
leaving her less than what the law
requires), or zero annuity, that also
has to be notarized..(same form). The
spousal amount (look on your annuity
estimate) will show a certain amount.
The 50% reduction, gives the spouse
half of what is shown on the annuity
estimate and the reduction on your
monthly annuity is half of what they
were taking out for the 100% annuity.
Response: Thank you so much,
Roseanne
Have a wonderful
Thanksgiving, we DO have much to be
thankful for.....till we speak
again....Roseanne |
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