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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 September 2013 |
Good Day Postal
Employees!!
JUST IN: Ex SPOUSE
(divorced 23 yrs ago) GETS CHECK FOR $19,459.22 -
CURRENT WIDOW (of 19 years) $0.00
Perhaps�..that was enough to make you
check your BENEFICIARY FORMS!!!
August was
an unusually busy month with emails; Air Mail
Retirements, as well as individual personal
sessions. AND ONE OF THE MOST ASKED
QUESTIONS...�."what about Medicare when I turn
65"? Before we discuss this, it needs to be broken
down. There are 4 types of Medicare, Part A, Part
B, Part C and Part D. Medicare Part A
(hospitalization ONLY) is FREE . Medicare Part B,
Part C, and Part D will cost you monthly and those
premium(s) are withdrawn from your Social Security
check.
In many different ways I have tried
to communicate, to LOOK HARD AT THIS ISSUE before
you simply SIGN UP for Medicare Part B, or "BE
SIGNED UP for Medicare Part B" only to become
aware when your Social Security check is less than
what it was the month before when you were still
64 (&11 months). HOPEFULLY, you all are aware,
when you turn 65 that Medicare Part A (at age
65�and if you are not working�another added little
issue) is the primary provider for
hospitalization. Both CSRS and FERS employee's pay
into Medicare, which is deducted from your
paycheck. Medicare Part A is free when you turn
65, regardless if you are in the FERS OR CSRS
retirement system. Not often am I challenged on my
views as it relates to retirement�most just assume
I know (and no news flash here �I DO!!). However
this month, I was challenged on my views of
Medicare Part B. So in order to ensure that I am
providing the best "REAL" information, to you,
which I know you rely upon heavily, I researched
to see if I was flat out wrong, somewhat wrong or
even misleading. Many times change is so fast that
somethings can slip by you. In my case, dealing
with my daughter's illness on top of going to NY
for a funeral for the last "elder" of my family,
this was not the best month for a "challenge".
Something could have changed, and I could have
missed something. BUT I DIDN'T, and that is not to
say I can never be wrong�..it is said to say, I
will go the extra mile to make sure I am giving
you the most accurate information, so that you can
make the best decisions as it relates to your
employment and to your current or future
retirement.
I am placing this link on here
so that you can look for yourself on what OPM says
about FEHB versus Medicare (all the parts of
Medicare A, B, C & D).
http://www.opm.gov/healthcare-insurance/healthcare/medicare/75-12-final.pdf
This 17 page document is a wealth of
information�.I can sum it up though�.FEHB and
Medicare Part A work hand in hand. Medicare Part B
or C or D is not necessary for you to purchase.
This has been my opinion ALL ALONG, finally there
is data this booklet to support what I am telling
you. But this link is here for you to make up your
own mind. YOU CAN'T just DO what I tell you!!!! I
appreciate the trust that you have for me, but YOU
HAVE to know why you are doing it, otherwise me
writing these columns are NOT helping you, if you
are NOT actively understanding the why's of it !!
There are no 2 retirements alike�.the rules may be
the same, but �everyone has something different in
their retirement that could affect an answer
relative to the Medicare issue�such as you may
have Tri-Care, and a part of that insurance has
requirements that are not addressed in the column.
So PLEASE read it!! Then make decisions based upon
you and your family status, not the status quo. I
am telling you this because I believe you need to
know the truth. IF I say you need to know the
facts�you won't, only when you think that you are
not being told the truth will you actively
research it. You need to know even if it hurts
(financially). I am a retired postal employee, my
husband is a retired postal employee, and when we
turn 65 we are NOT taking Medicare Part B,C,D or
any other alphabetic symbol they come up with! HE
AND I don't have to, we have FEHB�what is better
than FEHB??? Medicare�ah�NO!!!�, so for us�at
least, there is no question.
That being
said�.all of you out there are individuals, and
even though you may have the same retirement
system (CSRS or FERS) and even in those 2 systems,
each has an additional sidebar system CSRS/offset
or FERS w/frozen CSRS. I revisit this subject
because many of you still don't know. When I am
asked questions via email, and you tell me that
you are a CSRS employee, but in actuality you are
CSRS/offset, that, depending on the question(s)
can result in very different answers, to the same
question. What is good information for one CSRS or
FERS employee may not be the right information for
another CSRS or FERS employee�even if both are
exactly in the same system (1 of 4 retirement
systems). There are some HARD FACTS that don't
change in each of the retirement system, however
each one is not a "cookie-cutter" retirement
system; and there are too many individual "issues"
(about YOU specifically) that have a real impact
on the correct answer. As an example, if you ask
me a question, and you state you are a CSRS
employee, I answer it based upon the rules/reg's
of the CSRS system. And then it turns out that you
are a CSRS/offset, then chances increase a hundred
fold you will get incorrect information... BAD
INFO IN� will result �BAD INFO OUT.
FOR
REAL�.YOU SHOULD KNOW WHAT RETIREMENT SYSTEM YOU
ARE IN !!! AND I SAY THAT BECAUSE MANY OF YOU
DON'T�TOO MANY EMAILS TO ME BEAR THIS STATEMENT
OUT!!
So to make this a bit easier for you,
go to your pay stub, in the teeny box that says
Retire�.there is a even smaller symbol, it's
either a 1 (one) or 8 (eight) or an A (apple) or 5
(five). (Straight) CSRS= 1; Straight FERS=8;
CSRS/offset=5; FERS w/frozen CSRS=A. You need to
know this stuff!!!
This month, I will be
looking into a couple of Long Term Insurance
policies/companies, not so much as to give a
recommendation, (it's really just for me & my
husband) but to see what the real financial value
of this type of insurance is. I did not take out
(federal) LTI when I was an employee, and perhaps
I should have. I will post my feelings about this,
probably in next month's column. And if you have
not read all of my previous columns, there is a
wonderful book written by James Brass "Make Sure
Your Money Lasts in Retirement". I read it and
thought it had really good information, especially
if you are not a "financial person". Getting your
knowledge before you retire is so much more
rewarding because there is a sense of peace that
you know what you know.
And here is the
TOP QUESTION(S) OF THE MONTH: Discontinued, Early
Out, VERA, MRA+10 Retirements. I can consolidate
about 30 questions and answers from this month's
emails alone, just by giving you some information
on these types of retirements. Understand, I write
from all of your perspectives, craft employee,
union steward, supervisor, manager, or EAS
anything! I am my own worst enemy!! Why? Because I
must play both sides of the fence so that you have
the maximum benefit of what I know�and it ain't
easy!! I am constantly arguing with myself making
"cases" for both sides of the issue to win. And
when I have completely exhausted all of the little
known "stuff" lets just say, then I give you the
answer. Now this scenario is not so much about
retirement rules, regulations or processes, but
about other issues (similar to Medicare), that we
should know about as federal employees. Otherwise,
how will you know that you are doing the right
thing, as it relates to your retirement, OR the
actual TYPE of retirement that you will retire
under.
VERA (Voluntary Early Retirement
Authority) is the same as when referred to an
EARLY OUT. Both can, but don't necessarily have an
monetary incentive, and you ARE eligible (if you
are a FERS employee) for the Special Supplement if
you ARE at your MRA or when you REACH your MRA.
AGE SERVICE
50 20 yrs
Any
age 25 yrs.
Discontinued - "If your 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 age and service requirements shown below.
The CSRS portion of a CSRS/FERS Transfer annuity
benefit is reduced by 2% or each years (1/6th per
month that you are under age 55 on date of
retirement. The FERS portion of the annuity is not
reduced. Special retirement supplements are not
payable until you reach your MRA. Special
retirement supplements are subject to the Social
Security earnings limitation."
AGE
SERVICE
50 20 yrs
Any age 25
yrs.
MRA+10 - Age (56-57) with (at least)
10 credible years of service. Meaning you are AT
your MRA, but you don't have 30 years for full
retirement, and you are not 60 yet with 20 years
(for a full retirement). So YES you can retire at
your MRA with only having worked 10 years (or
more)�.AND unless you have some very specific
reasons why you would take this type of
retirement�I call this a sucker move. You
immediately LOSE (forever) the ability to collect
your Special Supplement, and your annuity is
forever reduced by 5% for each year under age 62.
Let me give you an example of this: Using a high 3
average salary of $50,000 - and 22 years (of
credible service) AND you are at your MRA.
Understand EVERYONE DOES NOT HAVE THE SAME MRA
PEOPLE!!!!. It's based on your birthdate, but
mostly the average MRA is 56 and we will use that
figure for this example. $50,000 X 1%= $500.00 X
22=$11,000 (yrly) or ($916.00 monthly GROSS).
Then that figure is reduced by 5% for each
year under 62, so that is a reduction in our
example of 30% ($3300) = $7700. divided by 12 =
$617.00 BEFORE TAXES, LIFE INSURANCE AND HEALTH
INSURANCE. SO if you tell me that you are not
taking either the life or the health
insurance�.then what are you retiring to do?
Because in this instance, the only benefit to this
type of retirement is SECURING LIFE INSURANCE AND
HEALTH BENEFITS, and moving on to another job�.AND
either taking your portable retirement (TSP) and
moving it to the NEW Job's 401K or keeping it at
TSP (with the understanding that while it's in
that fund (TSP) you NOW, a non-federal employee,
CANNOT ADD any money to your TSP account.
SUMMARY: OK, so aside from the VERA being fairly
easy to understand. AND once broken apart and you
see the reduction with the MRA + 10 which is also
now easy to understand�that it's not a good
financial move really�.but in some cases could be
necessary. It's the Discontinued Service that many
of you are asking about. I have read the POSt
Plan. My problem with you all TRYING FOR
DISCONTINUED SERVICE RETIREMENT�..IS�do you think
that the post office is not documenting the "job
offers" being sent to you. How are you going to
show that they DID NOT GIVE YOU A REASONABLE
OFFER???, so that you can invoke a discontinued
service retirement. I SAID I READ THE POSt Plan�
and postmasters, you need to read it as carefully
as I did!! Your questions are answered in the
plan�look at the dates�.things are set in motion
by the DATES!! Remember I am looking at this from
all side of the situation.
Q 1.
Hi Roseanne, I have been contemplating leaving the
Post Office and taking all of my money with me. I
have 26 years, and I am in the FERS system, my age
is 50. At the time of the prior early out, I was
shy of the years and age�.(OH HOW I WISHED MY
PARENTS WOULD HAVE HAD ME A YEAR OR TWO SOONER !!
LOL)...I don't have the energy or the desire to
put up with the BS anymore!! My district promotes
the worst of the worst. Rules and regulations are
constantly being broken, and mostly by management
(I too am management, so I get to see it first
hand). I am a Postmaster (level --); and as you
can see by my level, I run a fairly large office,
and right now the changes to me personally are
very little, but knowing�there is more change to
come, and many of us don't think it's going to be
pretty!! What do you suggest I do? You seem to be
the ONLY person that understands this ridiculous
employer we have! Thank you for being the postal
employee's life raft in the sea of postalpuke.
HELP ME SAVE MY SANITY.
A 1. Hi Help
me��.sanity, First I suggest YOU read the POSt
plan. I guess from being in the MGMT (game), I
understand the "underlying language" of what is
given to other management employees. Not only do I
know HOW they think, I UNDERSTAND (from their
perspective) why they think what they do. That is
NOT to say that I disagree or agree with what they
are saying or doing, it's just I understand,
regardless of my opinion. That makes me uniquely
qualified to answer these types of questions. So
read the POSt plan, email me back with your phone
number� after reading it at least 3 times�if you
are unclear. And you are 100% WRONG when you said
your district promotes the worst of the
worst�..WHY because everyone of you think that
their district promotes the worst of the worst!!
Roseanne
Q 2. Dear Ms. Roseanne, a (former)
co-worker in Headquarters (LeEnfant Plaza)
referred me to you, because you did his (personal)
retirement about a year or two ago. He said you
came and gave a retirement seminar in Manasass
Virginia, and told me that if you ever did one
again I should do anything I could to attend. He
told me that the information you gave was not
necessarily the first time he had heard it, it was
more the way you explain it, that you make the
retirement puzzle fit together. He commented that
he had attended many retirement sessions in his
career (that were given by the USPS, on the clock
and off the clock) prior to coming to your
session. Like some of the other employees who were
going to attend, related, felt like they knew
enough to retire�.that is, until you came. He
shared that the group decided that night, they all
really knew little and understood even less, until
your class. He said you stood up in front of the
group, and told them that HQ employees were
spoiled, knew less than many craft employees about
THEIR retirement, and expected more than anyone
else. And you told them you would never do another
session like that again. Do you still feel the
same way, or was that for just the HQ employees?
The reason I ask is, I know several people that,
also read your column, and would like to have you
come to do a session for us. Just to let you know
I am no longer in HQ's, if that was the reason you
said you wouldn't do that again. If so, could you
please respond and let us know the fee and what we
as a group have to do, so that we too can have
that same experience that they had. JT
A 2.
Hi JT, Wow!! Yes, I did�and that is precisely what
I told them. And it also tells me that you HAD to
have spoken with one of those in the class,
because no one else would know that but someone
who attended. But there were reasons for that
statement�logistics being the main one. Of course
the normal "bitching 'n' moaning parade" OF postal
employees in general, and just a variety of
issues. So how do I answer this, because, I have
done MANY group sessions since that one for the HQ
employees�but they were APWU "driven". So in that
case, the "where" was not an issue, as it was when
I did the one for the HQ employees. Since I am NOT
an employee anymore, I cannot USE postal premises
for anything, therefore the logistics were
difficult�.(Ah�in Washington DC )!!! Try to get 45
EAS/PCES folks�separate them by FERS and CSRS,
then have a separate session for each, in a place
where there is ample parking; a convenient day and
time; and THEN, HAVE NO CLOUT WHATSOEVER to make
sure they respond to my emails�ensure they are
coming�book the site�. A LOGISTIC NIGHTMARE!! So
yes, I do group sessions, and the fee is dependent
upon where it is, how many are going to attend�if
it's a "union-driven event"�meaning that whichever
union is hiring me to do this, they have a union
hall or place designated for meetings, or as in
the case with some of the NALC unions, a session
during a portion of their convention. If it is
"individuals" coming together, such as it was with
the HQ employees, hiring me sort of collectively,
that also is another way that I have done these
sessions. After you read this email, discuss with
your co-workers and get back with me so that I can
try to plan a session that would work for the
group you are "representing" with this email.
Roseanne
Q 3. Hi Roseanne, Maybe this is a
stupid question, and I have asked this time and
time again, even to my supervisor�what is that
figure at the very bottom of my pay stub. Thanks,
Clueless
A 3. Hi YernotClueless, That
figure is the total amount of YOUR contributions
to the retirement fund for all of the PRIOR years.
The current years' contribution is on the "retire"
line under YTD. The only time that figure at the
bottom changes, is PP2, when the entire year (YTD)
is added to that bottom figure, and PP 2 shows PP
and YTD the same figure�because it's starting all
over again�and then next PP2 its added�the same
way. And by the way I even answer what some may
feel are the stupid questions�..I just don't have
the heart to publish them. For example, how come
we as postal employees don't get a discount on
stamps? I was tempted to say, I do, how come you
don't. But that would have just been ugly on my
part�My husband told me clarify YOU DON'T GET
STAMPS FOR FREE and NEVER HAVE. Of course postal
employees, don't get a discount on stamps nor have
we ever gotten them free. And those who work at
the IRS pay taxes, and those who work for TSA
still have to be scanned when going through an
airport�and on and on�..
Till we speak again���Roseanne |
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