federal retirement and benefits

Federal Retirement and Benefits

Presented by Josephine Harris Human Resources Specialist

U. S. Department of AgricultureSeptember 2006

Federal Retirement Plans

Civil Service Retirement System (CSRS)

Civil Service Retirement System - Offset (CSRS Offset)

Federal Employees Retirement System (FERS)

Federal Retirement Plans

The CSRS, CSRS Offset, and FERS retirement plans are unique: Agency and employee contributions are

different Retirement eligibility is very different Annuity sources are different

CSRS Retirement Plan Employer and employees pay into the

CSRS fund. Employees also pays Hospital Insurance Tax (HITS/Medicare)

Monthly CSRS Annuity

Medicare Coverage Part A at age 65

CSRS Offset Plan Employees are covered by both CSRS

and Social Security Credits are earned under CSRS and

have the portability of Social Security Monthly annuity will be reduced or offset

when the employee is eligible for Social Security benefits (usually age 62)

Medicare Coverage Part A at age 65

FERS Retirement Plan Employer and employees pay into the

FERS fund. Employees also pay Social Security and they participate in the Thrift Savings Plan (TSP)

FERS monthly annuity and an annuity supplement payable until age 62

Full Medicare coverage at age 65

Retirement Eligibility CSRS CSRS Optional

Age 62 Years of Service 560 2055 30

CSRS Special Option, Early Option, Discontinued ServiceAge 50 Years of Service 20

Any Age 25 Disability Any age with 5 years of service Deferred Age 62 with 5 years of service

Retirement Eligibility FERS FERS Optional/Immediate

Age 62 Years of Service 560 20MRA 30MRA 10

FERS Early Option, Discontinued ServiceAge 50 Years of Service 20

Any Age 25 Deferred Retirement

Age 62 Years of Service 5

Retirement Eligibility

OPM makes the final determination on: Creditable Service

Retirement eligibility

Annuity amount

Retirement Planning Start 5 years prior to being eligible

Talk to the agency Retirement Officer

Make sure that all of your creditable service is documented and on file.

Make decisions regarding deposit and redeposits if any

Retirement Planning Gather information about other

retirement options

Obtain information about survivor benefits

Obtain information about decisions that cannot be changed after retirement

Retirement Planning Request retirement/benefit estimates

Review official personnel folder for Designation of Beneficiary forms

Decide when you can afford to retire.

Retirement Application Review the retirement application

Meet with the agency Retirement Counselor

Complete the retirement application selecting the appropriate family/survivor benefits

Retirement Application Completed application is processed by

the personnel office and forwarded to the Office of Personnel Management (OPM)

Individual Retirement Record will be closed out and forwarded to OPM along with other retirement documents

Retirement Application OPM will notify the employee and

provide a claim identification number when the application is received

OPM will make “interim” payments if the records clearly show retirement eligibility

Government Pension Offset Spouses’s or Widow(er)’s Benefits

Offset = Two-Thirds the amount of the government pension

FERS and CSRS Offset are Exempt

Windfall Elimination Provision

Affects people who earned a retirement pension from working for a government agency (or an employer in another country), and also worked at other jobs and paid Social Security taxes sufficient to qualify for retirement or disability benefits

Windfall Elimination Provision

Social Security will be reduced if:

You reach 62 after 1985; or You become disabled after 1984; or You first become eligible for a monthly

pension based on work where you did not pay Social Security taxes after 1985, even if you are still working

Military Service Active duty earnings have been covered

by Social Security since 1957 Service credit is different for CSRS and

FERS retirement plans May or may not receive credit for time

creditable for military retirement. Generally there is no offset between

Social Security and retired military pay

Survivor Benefits

Widow or Widower

Former Spouse

Dependent Children

Federal Employees Group Life Insurance

FEGLI can be continued into retirement if: Employee is entitled to receive an

immediate annuity Employee has been insured for the 5

years of service immediately before the date the annuity starts

Employees’ insurance has not been converted to an individual policy

Federal Employees Group Life Insurance

Must complete SF 2818 Continuation of Life Insurance Coverage

Elect the amount of Basic Insurance you want after age 65 (or retirement if later)

Choices = 75%, 50%, and No reduction

Contacts

opm.gov

josephine.harris@ars.usda.gov

csrees.usda.gov/about/human_res/cesguide/ceshr_index.html

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