Browsing: annuity

Q. I am a CSRS Offset retiree who is now 62 and eligible for Social Security. I am currently employed as a contractor working in a government agency. The Office of Personnel Management is reducing my annuity by the amount SS reported to them that I am eligible to receive. I don’t dispute the amount and understand that this would happen. However, SS told me that I earn too much money and they will not make up the difference. I was told during the retirement seminar that regardless of the amount I earned, I would get the SS portion because…

Q. I’m a CSRS person. Will my survivor annuity increase as my CSRS pension increases due to COLA? Will this occur if I select less than a full survivor annuity? A. Any survivor benefit you elect will increase for inflation at the same rate as your benefit.

Q. I retired under FERS and receive the supplement. Will the sale of a second home be considered wages, thus reducing my supplement or completely eliminating it?   A. Proceeds from the sale of a home are not considered wages for any purpose that I am aware of.

Q. My husband is a CSRS retiree. His Social Security benefit was reduced due to his receiving a pension. I am at full retirement age and plan to apply for Social Security based on his earnings since I do not have my quarters met. Will my Social Security be based on his benefit before the reduction or will mine be based on his reduced amount? A. This is a question for a Social Security rep, but it is my understanding that your spousal benefit will be calculated based on your husband’s windfall elimination provision-reduced benefit amount.

Q. If I retire from civil service (under FERS) and I return to work as a civil servant at a later date, I know that my annuity will be subtracted from my pay. However, will I be able to contribute to TSP again? If so, can I contribute to my original TSP account or would I have to start over with another account? A. You will allowed to contribute to the TSP for during any period of eligible employment under TSP’s rules: A new TSP account will be opened for you when your are eligibly employed.

Q. I currently work for the U.S. Postal Service and have 38 years of service. I’ll be 66 years old in December 2019 and can collect my Social Security benefits in full while still working at the Post Office. Will they still reduce my benefits (government offset) even though I’m not retired or collecting my CSRS pension? A. The Social Security earned income offset will not apply to your Social Security retirement benefit once you reach your Social Security Full Retirement Age. The windfall elimination provision is calculated based on your earnings history and will be applied whether, or not,…

Q. If I retire on Dec. 31, 2019, I will not be paid for annual leave I have saved until sometime the next year (2020). Does that money count against my 2020 Social Security earnings limit ($17,000), reducing my Social Security payments, or does it not count as earned income in 2020 (since I accrued it in previous years)? A. For purposes of the Social Security earned income offset, income counts in the year that it is earned, rather that the year in which it is paid.

Q. I’m a FERS employee. As I reach retirement and knowing about my retirement and Social Security, what is the best way to maximize my TSP? If I have $1 million in my TSP, would moving the money from the C Fund to the G Fund and implement the 4 percent rule without wavering on my withdrawals would I run out of money? If the G Fund pays 1-2 percent every year I still seem to leave this Earth with money remaining. Looking at 4 percent calculation models, if you’re making an average above the 4 percent you wind up…

Q. I will be 72 in November and will continue working for the government for another two years. Can I change my TSP contributions to a Roth IRA now and be able to withdrawn the money from the account without penalty when I retire in June 2021? A. A penalty will be assessed against any Roth TSP earnings that are withdrawn before age 59 ½ or less than 5 years after Jan. 1 of the year in which you made your first Roth TSP contribution, whichever is later.

1 2 3 9