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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 April 2012 |
Good Day Postal Employees:
Well it's April 2st and no solid
early out offers yet... but it is only
Monday as the saga continues of WHEN
this early out is going to be offered.
I have been informed by many of
you across the country that you have
been told that the announcement was
going to be 2 weeks ago, some have
said it was coming last week. Some
have been taken into offices and told
it's coming Friday. The information
out there right now is still wide
spread rumors. There have even been
employees told that the early out
would force employees to be gone by
May 31st, and yet still no
confirmation for the VERA. There is
some interesting information that was
initiated in February, which leads me
to believe that there is going to be
an early out or the potential for one
because... OPM has gotten their ducks
in a row... please see below.
"Dated February 2012, OPM had
announced that they are going to
require payment from the federal
agencies to complete each early out
retirement. For FY2012 (retroactively
to Oct, 1, 2011), P.L. 112-74 requires
agencies to REMIT to the Office of
Personnel Management (OPM) for deposit
into CSRDF, an amount equal to the
FY2011 average unit cost for
processing annuity cases ($107.62) if
an employee retires under the
following conditions:
1). A
CSRS or FERS Voluntary Early
Retirement Authority (VERA), including
voluntary early retirements authorized
under 5 U.S.C. 9902 ..or
2). any
other CSRS or FERS provision and
receives a Voluntary Separation
Incentive Payment (VSIP), or
3).
any other form of monetary separation
incentive (i.e. any form of buyout)."
With this new remittance
requirement for early out processing,
any agency trying to reduce staffing
by a mere 10,000 employees under VERA
with or without a VSIP, could be a
very, very expensive reduction in
force. By doing ballpark math, for
just 10,000 (of the 30,000 the postal
service is trying to reduce), early
out employees, would cost the postal
service a processing fee of around...$
1,000,000.00....I'm just saying !!!
Q 1. - Hello Roseanne, I am
70 years old and I am planning to
retire by the end of June 2012. I will
have 28 years and 9 months service
with the Postal Service. I am also
retired military (USAF). I began to
collect my social security at the full
retirement age. I have nearly $100,000
in the TSP funds. When I began to work
for the Postal Service I was on CSRS.
Around 1997/1998 I switched to FERS. I
wanted to increase my contributions to
social security to bring it up to the
30 years paid. I was informed that my
CSRS is now frozen and that when I
retire my retirement pay would be
calculated under both retirement
system�s(FERS/CSRS). I have nearly
2,000 hours of sick leave and as of
this date I have earned 443 hours of
annual leave.
My question is as
follows: How exactly is my retirement
pay calculated? Will the 50% of my
FERS sick leave be included and how is
my CSRS sick leave calculated? Being
that I fall under both retirement
plans, what retirement dates can be
more beneficial for me? Thank you for
kind service and response. Sincerely,
J
A 1. - Hi J. Before I can
address any questions, I would need to
know what your retirement code is.
Look on your pay stub and next to the
retirement, the code is going to be
either, 1,8,5 or A. Let me know that,
and I can then begin to address your
question. Roseanne
Q 1- (a)
Hello Roseanne, Thank you very much
for your prompt reply! The number
right next to retirement on my pay
stub is 1. Thanks again.
A 1 -
(a) Based on your response of "1"
being your retirement code, which is
CSRS. You say you switched to FERS
that retirement code is "8"; the other
code is "5", which stands for
CSRS/offset; and code "A" which is
FERS w/frozen CSRS. I would have to
say that the information you got seems
not to line up with what your paycheck
stub says your retirement system is.
So there ya go, something is quite
wrong. Before you do anything on
calculations that has to be settled.
And it's not settled with me. Your
stub says you are plain...CSRS. So
none of the FERS issues are relative.
You got to get this straight first.
Roseanne
Q 2. Hi Roseanne, just
waiting for the vera/early out that I
have heard about since July of 2011
LOL. Anyways my question: I refer back
to your article of Sept 2011. I am
trying to figure out the cost
difference between BCBS basic (self)
versus Medicare part B,C,D... I
realize that congress might make this
point mute if they change our health
plan like they want, but its good to
cover all the bases. Keep those
articles coming, they are a lifeline.
A 2. - I just found your email
this morning when going thru my spam
mail...have no idea why it landed
there...Anyway to answer your
question. Basic BCBS (code 111) - 2012
monthly premium - $121.88 for an
annuitant..AND..Standard BCBS (code
104) - 2012 monthly premium - $ 185.42
for an annuitant.
Once you
reach 65, Medicare Part A - is
free...pretty much to everyone. And
once you reach 65 (if not
working..retired), Medicare A becomes
your PRIMARY HOSPITAL INSURANCE....THE
HOSPITAL ONLY!! - you have to have
more than this for your doctor
appointments, tests, lab work,
prescriptions, etc.
If you
think that when you reach 65 that
medical insurance is cheaper because
you have medicare, that is just
absolutely wrong - wrong - wrong.
Keeping that in mind, you will be
charged for Medicare Part B, based on
your income...I would project for you,
somewhere around $150.00 per month. If
you decide to drop your BCBS (and for
the life of me I cannot understand why
anyone would)...this Medicare Part B,
pays only 80% of the bill, and you
have to pay 20% of what Medicare does
not pay.
So, you could purchase
Medicare Part C that HELPS pay for the
20% that Medicare Part B did not
pay......and then, you would still
need coverage for prescriptions, and
that would be Medicare Part D Silver.
Some states offer a combination of
Medicare Part C & D. Why would anyone
give up federal health benefits to pay
MORE than they would if they just
opted out of Medicare Part B, and not
take Medicare C or D. I hope this has
helped explain maybe in a little more
detail. Roseanne
Q 2 (a). -
That�s okay Roseanne, I figure you
would have come across the email at
some point...I just read that if you
don't sign up for med B at the time
you apply for social security
benefits, they increase your premiums
10% for every year you wait....I plan
to start my social when I turn 62, so
if the PO and congress decide they are
going to change our health care plans,
which I hope they don't, they do it
early enough for you to make better
long range plans. That 10% increase in
premiums seems kind of punitive to
me....almost like they try to
intimidate you to go the med B way. It
does seem that staying with BCBS is
the better way to go when you compare
it to the cost of med B, medi-gap and
prescription coverage even though BCBS
has some holes as far as what pct of
your total bill they cover. Thanks
again for your help and insight, I
can't say it enough...it�s good to
have you out there watching our backs.
A 2 (b). - Just the fact that you
"GET IT"..about the medicare versus
FEHB Health Benefits is worth it to
me. And you are very welcome .
Roseanne
Q 3. - Hi Roseanne: I
read your article and have a few
questions: I'm 55 and considering
retiring by the end of this year, and
my question to you is, when I retire,
how can my wife keep my medical plan
if I were to pass? Is there a way I
can do part of the survivor benefit so
she can be covered under my medical
plan if I were to become deceased?
Thank you for your assistance.
A 3.- Hi, There are different options
in taking the spousal annuity, and an
even bigger difference depending on
what retirement system you are
in...CSRS or FERS. In both of the
retirement systems, your monthly
calculated annuity is reduced by 10%
for the spousal annuity (which is on
the NARCES annuity estimate).
Depending on which of the two
retirement systems you are in, has a
different spousal choices. The biggest
reason to provide the spouse with the
spousal annuity IS FOR THE SPOUSE TO
BE ELIGIBLE for federal health
benefits, should you pre-decease your
spouse. So yes there is a way to do
that when you retire. Roseanne
Q 4. - Roseanne, I am a postal
employee under the FERS system. Do I
have to be offered a VERA to be
eligible for the special supplement or
will I receive it with a regular
retirement. I have reached my MRA and
am seriously considering moving on.
Thank you for all your help.
A
4. - Hi, If you REALLY ARE a FERS,
because some think they are and are
not, but if you are, then this
applies:
You are eligible for your
early out when you reach your MRA and
have 30 years (or more); OR you reach
age 60 with 20 years (or more); OR are
age 62 with 5 years (or more), OR they
offer an early out and your are at
your MRA and have the years, yes you
get the supplement.
They offer
an early and you are NOT at your MRA
and have the years, NO you don't
receive the supplement until you reach
your MRA. Those above are the
conditions in which you can get the
special supplement. I hope this has
helped clear this up for you. Roseanne
Till we speak
again....Roseanne |
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