Q. I retired in 2010 and, at that time, I was informed that I was in the wrong retirement system (FERS). I chose to be put in the proper program (CSRS Offset). I was also told by my human resources manager that, since I was in retirement, I would be able to keep all of my Thrift Savings Plan contributions, including the agency’s matching contributions. On Dec. 3, the agency forfeited about a fourth of the value of my TSP account, without any notification that this was going to happen. Is this a legal action? Why was I not informed with a letter that this was going to happen?

A. I’m not a judge, so I won’t comment on the legality of what has happened, but I have consulted on more than one Federal Erroneous Retirement Coverage Corrections Act case, and this is consistent with my expectation. You would not have been entitled to the FERS employer contributions under CSRS Offset, and so they are typically recaptured when you retroactively switch to CSRS from FERS.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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