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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 October 2012 |
Good Day Postal Employees!!!!
I have just returned from a
NY/NJ to assist with some difficult
family issues, and found out
through...YOU...my readers emailing me
information that an early out was
offered for APWU, and even with an
incentive!! To those who have written
me asking for either guidance or some
glimmer of hope that they would offer
an early out, you will attest to
this... I have said all along there
will be more early outs...I didn't
think they could/would offer an
incentive, given the fact that this is
the second time, because they
defaulted on a payment to OPM.
For me, I understand (from a
management perspective)how 10 or 15
thousand is a drop in the bucket for
them, because they spend so much on
each employee's benefits!! That is why
when you receive your Personal
Statement of Benefits, everyone
says..I wish I really did make this
much, or really...I make that
much!!..on paper yes. So when you look
at how much the post office pays into
their employee's overall benefits, to
give the incentive ensures that those
on the fence will go, thus continuing
to reduce benefit costs. This SHOULD
make you see that they are in serious
need of a total restructure, if they
intend on saving the institution of
the Postal Service. IF YOU CAN
..GO..GO!!!!..an early out like this,
the wide scope of occupation codes
that this VERA includes, a financial
incentive, may not ever come this way
again. YOU HAVE BEEN TOLD...YOU ALWAYS
ASK...WELL THIS IS IT...YOU HAVE BEEN
TOLD...IF YOU CAN RETIRE, RETIRE!
Q 1. Hi Roseanne,I read about
the code you were talking about
whether or not you are affected by the
civil service offset; on my check stub
right above the figure of how much I
paid into the system are the words
''USPS RETIREMENT"...on the line above
this what looks like the roman numeral
1. Is this the number code you were
referring to? If necessary I will scan
and send you a copy of my check stub .
Thanks so much for your help. I was
NRP'D in Nov. of 2010 but fortunately
I had enough yrs..32 yrs. 5 months,
that I just went on regular retirement
instead of OWCP. I still get all my
Dr. visits and procedures and medicine
paid for thru OWCP. I am getting close
to social security age and would like
to know how I stand on that
issue...Thank-you ....EM
A 1.
Thank you Roseanne, I was hoping for
better news but I had already been to
social security office and heard about
this. I was hoping they were wrong and
my social security will be basically
almost dollar for dollar what your
husband's amount is. Guess I was
blessed to retire with my high 3 yr.,
on a 47k route. Thanks again.....EM
Q 2. Roseanne, I have a question
for you! A friend of mine is retiring
after 32 years of service, she will be
retiring from being a Rural Carrier
under CSRS. Her husband works for the
Postal Service, and will be working
another 5 years at least. What she is
thinking of doing is to have her
husband change his health insurance
from individual to family. Would it be
better for her to retire with her own
health insurance. Thank you M.
A 2. Hi M, As I am sure you are aware
from your annuity estimate, as a
retiree, the health benefits cost much
more. So from that perspective, yes it
would be cheaper for the "still
employee" to pay for family coverage.
But it can be a pain, when one spouse
is retired and other working spouse is
paying the FEHB, when it comes time
for that OTHER spouse to retire. They
have NOW a form that goes with the
retirement package that identifies if
the "current" employee, is being
carried on another FEHB policy
(i.e.-retired spouse), making it a bit
easier now to convert. But if you want
my opinion, for my own personal
experience with me carrying the HB
entire marriage, then postmaster
husband retires...me still carrying
the FEHB (family), and then I retired.
What saved us from much grief, was
that I changed to single coverage
during open season, and my retired
husband, during open season also
changed to single coverage. So try to
change that BEFORE retirement...it's
much easier and cheaper. When you
apply for retirement and carry family
coverage...you can't change AT THAT
TIME each of you going single-single
until open season again. That could be
months of paying family coverage,
which costs more than 2 single coverages in the same plan. Hopefully
this has helped you make a good
decision prior to retirement. Take
care, Roseanne
Q 3. Hi
Roseanne, I am currently a clerk at
USPS and was hired in 2006. I recently
graduated from college and will be
looking for a new career, but I have a
couple of questions regarding my
retirement benefits when I leave USPS.
I am 28 years old, very far away from
retirement, but I am wondering what I
am entitled to besides my TSP when I
finally do resign? Everyone I have
asked seem to have different answers
completely. As far as I know, I am
able to roll my TSP into an IRA but
what about FERS? Will I be entitled to
anything? Thank you in advance, VS
A 3. Hi V, Yes you would be
entitled to YOUR contributions into
the FERS retirement system. After
resignation, and you receive your Form
50..Resignation, then you can contact
OPM for SF Form 3106 "Refund of FERS
Retirement Contributions". You can
contact TSP at 1-877-968-3778, after
you receive your Resignation Form 50.
Roseanne
Q 4.Roseanne, My
husband is a clerk at the post office.
He has 40 yrs or almost 40 years in
the PO. We are hoping he will be
offered a buy out this year or early
next year as the other crafts this
year. Do you think this a buyout is
possible this year for clerk craft?
Also, we are concerned about health
care benefits and how much that will
cost us monthly ( I do not have any
benefits as a realtor as I am an
independent contractor). We are
concerned about the election year and
if he should retire now rather than
after the presidential election and
loose out on the current benefits
offered to retirees. Your opinion is
appreciated. L & F
A 4. Hi L &
F, I have kept an open mind about this
clerk buy out. It seems that the clerk
positions, particularly in smaller
Associate Offices..(for us HR postal
employee's, known as Tiny Town, USA),
because EVERY state has them), and
"manual" distribution in smaller
offices can be combined in bigger
offices, which appears is what they
are doing. So the meaning of that to
me, since much of the "distribution"
of mail is more computerized (with bar
coding)and with offices consolidating
(smaller offices being absorbed by the
larger offices, and that SHOULD
equal...an early out VERA. However, as
I have written before, maybe not on
the column, but certainly to
individuals... Really!! how many times
can the post office offer monetary
incentives to retire & (to some that
are already eligible to RETIRE); which
then is reported on news shows to the
public. THEN on the news reveals that
the Postal Service did not pay
retirement payments to OPM (for 2
months so far) and THEN ON TOP IT
IT..keep crying broke!!
The
general PUBLIC would NEVER understand
that logic. For me, I understand the
why's and how's an incentive is SO
DOABLE, because I understand how much
an employee "costs" in just benefits
alone. So the 15G incentive over 2
years...please... is a GIFT
financially for the post
office...because you see that is JUST
HOW MUCH AN EMPLOYEE'S BENEFITS COST
the post office, that no ever looks
at, except 1 time a year....when you
get your Employee's Benefit Statement.
It looks like you make a lot more than
you do. But the fact is, the Postal
Service pays that in your behalf in
benefits. That being said, I am not
sure about an incentive for all the
reasons I cited above. But I do
foresee another round of VERA's and no
doubt clerks eventually. But
understand sometimes when they will do
a "clerk" it may be only certain
occupational codes and not ALL clerks.
Yea, I would be real concerned
about the state of health benefits, we
are kind of an "insulated" federal
agency, in that we are the only ones
that "PAY OUR OWN WAY" (you know.. not
funded by TAX dollars). However,
again...just my opinion (that you
asked for)...it does not matter what
side of the aisle you sit on dem or
repub, if the current administration
changes, all federal employees,
including the post office very well
may be affected, because of that
party's agenda and idea's about
"federal workers". If that happens, it
could lead to the post office being
approved to "incorporate" their own
health benefit plan..only for postal
employees. My response to that: "yea
whatever, because you were so
successful handling the "injured"
employees you had...NRP, OWCP..so you
create you own health benefit
plan..please..OK I'm done on that.
Now all that above was
"conversation about postal things".
Let's talk about your husband. I will
tell you that with 40 years of
service, that his retirement annuity
will net pretty much about the same as
his working net FACT...FACT...FACT if
a CSRS employee.
Federal
retirement does include a provision
for providing a spousal annuity (the
employee does have much leeway in this
area..w/spousal consent) and by doing
that, the spouse becomes entitled to
an annuity should her/his federal
spouse pass away. And if the postal
employee provides a spouse with a
spousal annuity (upon their death),
then that widow/widower will always be
eligible for Federal Health
Benefits,(based upon THEIR
spouse)..(however, there are a few
exceptions to that). I would call
1-877-477-3273 and request an annuity
estimate for December 2012. I am sure
if there are 40 years involved you are
aware of the estimates I am referring
to, since your husband should have
been getting these for about 10 years
now. Hopefully this has helped you
with understanding of this very
involved retirement process. Take
care, Roseanne
Q 5. Roseanne,
I have over 28 yrs service with the
post office. I submitted my disability
retirement papers March 10, 2012 they
got to a lady named (B's)desk. She is
in the appeals section. ( I do not
know why it would be there?) Anyway
she has had it since 05/09/2012. I
have called at least 2-3 times a
month. Should I be calling? I can not
talk to her, or leave a message, and
she has never called me back. I read
somewhere on the net that if it takes
this long it means they are going to
deny it. I am trying to work because I
am out of leave and cannot afford to
take off without pay.
Thanks,E
A 5. Hi E, When a disability
retirement case is in the appeals
sections, that is because it was
denied the first go-round;
thus("appeal"). Although I will say,
for it to go from it's initial review
stage in March 2012, and then just 2
months later in May in the appeals
section, sounds rather quickly to me.
When a case goes to the "appeals
section" typically is because your
physician's narrative(s) were not
"supportive" enough for an approval. I
would continue to call this person
named "B" and leave messages. If I
were you, I would review all the
narrative's your physicians wrote for
you, (I KNOW YOU MADE COPIES OF
EVERYTHING!!...PLEASE SAY THAT YOU
DID!!!) and THEN begin to work on the
re-consideration process, BEFORE THEY
TELL YOU THAT YOU WERE DENIED. And for
that, it is always, always,
always...the doctor(s) paperwork that
was INSUFFICIENT to support an
approval for a disability
retirement...ALWAYS!! Roseanne
Q 6. Hi Roseanne, I retired from USPS
on early out Nov. 1 2009. My monthly
CSA (Civil Service Annuity) is
$2600.00 before any deductions. I only
have 30 credits paid into my social
security account. If I took a part
time job making $300.00 per week until
age 62 what would be my civil service
offset? How much social security would
I draw? Would it be worth my time to
work part time? I was also medically
retired from USN and draw a VA check
of $1160.00. I am 57 years old. Thank-you.R
A 6. Hi R, You would have to work
(2-2.5 years) to gain those 10
quarters. Each year counts as 4
quarters, although to get 4 quarters
(now), you really don't have to work
the entire year, it's now an earnings
figure. You will need to check with
the Social Security office for the
precise dollar figure, and also find
out while you are there, what would
your SS check be at age 62.
....YOU GOT TO DO IT THERE AT THE SS
OFFICE...CALLING ON THE PHONE DOES NOT
GET YOU THE RESULTS YOU NEED. SO let
us fast forward 2.5 years.... and you
worked and now have 40 quarters. Take
that monthly figure that you got when
you were at the SS office (2-2.5yrs
ago)and then reduce that figure by
2/3rds, and that is what your monthly
SS check would be. Also, when you
obtain those total 40 quarters....the
SS office (will KNOW) you are a
federal employee. Remember, when at
the Social Security office, understand
they have the same retirement systems
as we do. So when they are looking
into your work history, they know you
will be getting a federal annuity; and
they will also know if you are CSRS or
FERS, by your contribution (or lack
of) into the Social Security fund.
They are able to tell you how much
your SS check will be. You can find
out EVEN before you work these 2 - 2.5
years, I did. For me, I have 28
quarters...my CSRS annuity is about
2900 per month before taxes, and if I
worked and got my total 40
quarters...I would receive $103. per
month...sad ain't it!! Roseanne
Till we speak again...Roseanne |
OCTOBER
2012 - SPECIAL FSA ARTICLE
Good Day Postal Employees!!
There is a very little known FABULOUS
DEAL that you could be passing by when
you retire. Are you interested?
For those of you who may retire
NOT AT THE END OF THE YEAR....say
between February through July....AND
YOU SIGNED UP FOR THE HEALTH FSA,
FLEXIBLE SPENDING ACCOUNT for the next
year...say the year 2013, and then
retire in Feb or March :) whatever,
you "agreed" to in your FSA agreement
(done during open season 2012), you
are able to spend the entire amount,
as long as you spend it prior to your
last day on the rolls, regardless if
your last day of work is Jan 31st or
July 31st. Let me explain, how this
works.
At the end of 2008
during open season, I signed up for
Health FSA, for the coming year 2009,
for maximum amount (at that time
$5000). That resulted in a deduction
from my paycheck of $192.30 bi-weekly.
AGAIN The agreement was $5000. One of
the great financial advantages of
doing this, is that $192.30 is not
taxed. Meaning if my gross pay was
1500.00, I would pay federal tax on
1307.70 (because like health benefit
premiums, FSA is also pre-taxed). See
below for a better look at the example
figures:
Bi-Weekly Gross Pay:
1500.00
FSA (pre tax) 192.30
Health Benefits: pre tax 45.20
(237.50)
1262.50 That is what your
federal tax is based on! This is why
there are TWO Gross amounts on your
W-2 statements....pre tax deductions.
As you all should know, PP 2, all
financial changes take place for the
new year, new health plan if you
changed, annual leave is advanced, new
FSA accounts..all of those open season
changes are now reflected on your PP-2
pay stub. So if you have never done an
FSA use $2500.00 per year (the new
maximum), for a user friendly
explanation of this fab deal.
When you sign up for FSA (during the
FSA open season...for the following
year), you agree to have 96.15 per
pay, deposited in the FSA account (for
a total of $2500.00 for 26 pay
periods). In turn, you must use ALL OF
THAT $2500.00 within the calendar
year. IF YOU DON'T, there is no refund
of your unused contributions. YOU LOSE
WHATEVER MONEY LEFT THAT YOU DID NOT
USE TOWARDS YOUR HEALTH CARE IN THAT
YEAR. This is why it is important to
not to over estimate what you may use
for health care expenses, because if
you don't use it all, it's gone...no
refund!
BUT STAY WITH ME so you
understand this!!...So on January
17th, you find out you need to have
major dental work, and it costs
$2500.00, you can use all $2500.00 on
January 17th for that dental work even
though you may have only contributed
say $288.45 (or just 3 pay period
deductions each being $96.15 per pay
period).
OK now let's add an
early out offer to this scenario, as
it was in my case. The VERA early out
says you have to leave on Jan 31,
2013, and you used the $2500.00 on
your dental work on January
17th...what happens....NOT A THING! Do
you have to pay back the money you
used that you did not put in the fund?
NO, you don't. Why not? For the same
reason that when you don't use all the
money in the FSA fund, you don't get
it back...it's the agreement.
For a real life example, let's go back
to me. I worked 13 pay periods in
2009, and contributed (half of the
agreement ) $2500.00 to the FSA fund
(the original agreement was 5000.00).
An early out for EAS was offered,
effective July 31, 2009, and I took
the VERA.
I was able (AND DID)
use nearly all $5000.00 of my FSA
money (the dates of my services HAD TO
BE JULY 31ST OR EARLIER), and because
of the agreement I did not have to pay
it back.
NOW!!! I am hoping
this is crystal clear..I am hoping
this is a road map for you..I hope you
understand what I said.....till we
speak again...Roseanne
The 10-4-2012
Postal Bulletin announced a reduction
in the Health Care maximum
contribution for 2013. "Effective with
the 2013 Flexible Spending Accounts
(FSA) plan year, which begins January
1, 2013, the Health Care FSA maximum
contribution is being reduced from
$5,000 to $2,500. This is an
individual limit, not a family limit;
an employee and a spouse may each
contribute up to $2,500 to a Health
Care FSA. The reduction is required to
comply with provisions of the 2010
Affordable Care Act. Program materials
and the PostalEASE employee
self-ser�vice enrollment system will
reflect the lower maximum
con�tribution. Program materials will
be issued as in past years to coincide
with FSA open season, which begins in
Novem�ber 2012." |
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