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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 December 2012 |
Good Day Postal
Employees!!!!!!!!
Whew!! This has been one K-Razy month!
The email questions have been really
over the top. The uncertainty that
is/was out there; the fear; the lack
of information; the inability to get
through to talk to someone; same
question..3 different answers from 3
different people....I suppose you all
know, since still employed, not hard
to figure out who I am referring to. I
have tried to answer each question but
I have had some issues of my own this
month as it relates to computers and
network. I had to laugh, because as I
have told many people via my email
responses, the APWU early out blew up
my computer and have been trying to
answer on phone and tablet and when I
was able to get connection to the new
lap top. So if I have missed anyone
please send me your question again. I
am hoping to have this resolved
(again) by the end of this week.
So many of you that have written
me were so misinformed about
everything that it was hard to keep on
task with even the most simple
questions. The questions were wrapped
around bad information, so in essence,
I had to "re-invent" the wheel in
terms of retirement systems'
differences, just in order to answer
the question. Many of the questions
wound up not even being a question,
because what it was based on, was just
FLAT OUT WRONG!!! I have spent much of
my month saying these exact words "I
don't care what HRSSC said". Why did I
spend so much time saying that,
because the information that, (at
least what you all were telling me)
was absolutely wrong. AND YOU ALL KNEW
IT WAS WRONG, BECAUSE YOU WOULD CALL
THEM BACK AND GET SOMEONE ELSE TELLING
YOU SOMETHING DIFFERENT, than the
first or the second answer. This month
I tried to find the best emails that
related issues that are pertinent
right now. Some of your emails were
very combative in regards to how you
feel about how "retirement" is
handled, and someone of you this was
your first experience with HRSSC - and
it was SHEER UNMITIIGATED CULTURE
SHOCK!! Many of you that have not
bidded in years, or really didn't have
any changes that needed personnel, or
now HRSSC assistance with, you were
the employees most affected by this.
There are some emails that I wouldn't
print that are too personal in nature,
and some even request that I don't use
their "scenario" in my column, and I
always do respect that, and don't. If
I don't say it now, it will pass...If
you read something I write, and you
can help a fellow employee by
explaining something to them, just do
it. I want all of you out there to
have the best retirement and watch for
the curve balls...cuz we all know at
the end of the day...this is still the
PO.
Q 1. Hi Roseanne, I am a 63
years old Rural Carrier. I am in the
CSRS/OFFSET retirement system. I am
planning on retiring either the end of
this year or the beginning of next
year. I would like to know your
opinion on buying back my non-funded
years? I entered on duty, Jan 16, 1980
as a 73-0 sub. Then on Dec 12, 1984,
in a leave earning status 73/77 sub /
auxiliary carrier through Sept 23,
1985, and was made regular rural
carrier. I resigned in December 23,
1996, with frozen retirement
contributions. I came back and was
re-employed March 15, 2001, as a
casual. On September (2001) was
converted to RCA (reached on the
hiring worksheet), and then Sept 15,
2007 was converted to regular rural
carrier. I have called HRSSC a few
times, and it is a joke! When I spoke
to the first lady that answered the
phone and explained that I wanted to
know how much it was to pay back the
non-funded time, I was told that I
could not buy any time back. Every
time I asked a question, she had to
leave the phone and come back and
answer. I asked her how long she had
been working at HRSSC, she said
"awhile". When I told this to my
postmaster, she told me to call back,
that I could buy the time back. I
called a couple of days later and
spoke to someone else, and they told
me I could pay it back. I don't
understand why they have people on the
phone that clearly don't know much or
anything about rural carriers. How are
we supposed to make a decision to
retire, if even the post office can't
answer a question
A 1. The
first thing you need to know is that
your years (and depending on when
these years occurred) sometimes are
ONLY credible for calculation for
ELIGIBILITY to retire, versus years
that are used in a retirement
calculation. In a quick review, I see
this as you having a total creditable
and paid for years as 16 years, 7
months and 16 days. It looks like you
can pay back is 5 years, 8 months and
7 days, based on the dates you sent
me. Once you see your annuity
statement, that should back up my
calculations. That being said, the 5+
years that you can pay back will not
be ONLY the 7% of the total earned
salary during those years, but the
INTEREST for the last almost 30 years.
If you were a straight CSRS and not a
CSRS/offset...even then I might not
even consider it due the cost. As a
CSRS/offset, at age 62 your annuity is
going to be re-calculated, because you
are the type of CSRS employee that
will get your FULL Social Security
check without a reduction. However,
your CSRS annuity will be offset, or
reduced. I say that to say, I
personally don't think it's a good
value. BUT that is just my opinion.
What may be also my opinion, is that
you aren't going to get the
information back regarding the buy
back in time from HRSSC to EVEN make a
decision if you are banking on
retiring at the end of the year.
Again, sorry, I would have answered it
sooner, but because this wound up in
my spam box, I had not really checked
it, with the computer issues I have
had this month, and too I have been
swamped with early out retirement
sessions. Roseanne
Q 2. Hi
Roseanne, It's an honor to meet you..
I just wanted to say THANKS for all
your knowledge and wisdom you've
provided on Postalmag.com� I
thoroughly enjoy reading other's
questions and then your answers to
said questions every month.. Its been
very insightful� I have at least a 2
part question but the other
question(s) depends on the answer to
my 1st question� It's not really a
technical question as much as it
requires you looking into your crystal
ball and giving your best opinion� I'm
a 60 year old rural carrier(leave comp
date, enter on duty date & retirement
comp date �all' of 06-4-77, retirement
plan 5-CSRS offset with a balance of
335.50 days sick leave{never to this
day "knock on wood" used a sick
day})�.. Someone asked if you thought
rural carriers would be offered a VERA
and you answered "honestly, no"� you
said "their Union is mighty and they
have a "true pathway" to career
employment, unlike any other
non-career" .. Here's my question:
Having said what you did about no
VERA, do you ever see the day that
rural carriers like myself who are
eligible to retire but are not quite
ready to do so for different
reasons(mine being that I have a great
route/post office plus I TRULY TRULY
love what I do and feel extremely
fortunate to have ever been hired back
in �77 to begin with(long story), in
good health plus I'm just not ready
'yet" to call it quits) being forced
out by management? In your opinion, do
you ever see that scenario playing
out???
Depending on what your
crystal ball revealed will determine
if I follow up with a
�deposit/redeposit' or not question..
Thanks in advance for reading my email
and I look forward to your reply�
A 2. Hi RT since it's a two part
question....It's good that you asked
this question, not because of the
question, because I get to answer
something that you didn't ask (yet??)
that may be far more important than an
early out. Is your retirement code 5
(CSRS/offset). That answer will
determine my answer to you.
2.
Added: Roseanne, yes, my retirement is
a code 5 offset as I mentioned
above...and my leave comp date, enter
on duty date & retirement comp date
�all' on 06-04-77, with a balance over
300 days sick leave...RT
2.
Response: Your retirement is based
upon CSRS rules as it applies to you
before age 62. At age 62 your annuity
is recomputed, because you are going
to receive full Social Security
benefits, unlike a regular CSRS
annuitant, BUT your CSRS annuity will
be reduced. and you will receive the
full SS chek . Roseanne
Q 3. Hi
Roseanne, I am a retired letter
carrier who turned 65 years old last
month under CSRS I had life insurance
taken out of my ANNUITY STATEMENT FROM
FEGLI AND NOW THEY ARE NOT TAKING
PREMIUMS OUT OF MY ANNUITY AM I STILL
COVERED FOR LIFE INSURANCE THROUGH
FEGLI THANKS YOUR COLUMN IS GREAT.
A 3. Yes.....you are still
covered! Once you turn 65, the basic
life insurance payment stops...but
your basic insurance (which was your
yearly salary at retirement, rounded
up to the nearest thousand,& with
2,000 added to that) will begin to
reduce until it is 25% of the original
value, and stays there. It takes about
3 years for the reduction to be
complete. But you will always have
life insurance. Roseanne
Q 4.
Hi, I'm looking for some info and
guidance on a VERA for a FERS
employee. I've sent my application in
for the early out offer and I am very
concerned about the back log that's
happening over at OPM. I've called
shared services who once quoted me a
6-8 week period before I receive my
first annuity check with my 1st
accurate computed check coming in @ 6
months. Another call to HRSSC said to
expect a 4-6 week period before
getting a check and then receiving a
correct annuity in 6 months. Does this
waiting period sound right? I didn't
prepare to well for retirement and may
experience a financial hardship.
I'm 54 with over 27yrs of civilian
service. I was told that under an
early out offer I will receive the sup
annuity when I turn 56. Is this
correct? One more question. Also, I
understand that when HRSSC receives
your paperwork that they sent you out
another booklet. What's that all
about?
I can imagine that your
getting all kinds of email from your
readers so I would really appreciate
it if and when you can respond to my
questions. Thank you in advance.
A 4. Stop worrying, it's not going
to be that bad. If you have sent in
your paperwork already, you should be
OK. I know what they are saying about
6-8 weeks period and that is
correct...but understand
something...two days ago, I got my
annuity check. I got my check on Nov
1. BUT BUT BUT...did you know that
check was paying me for October. So
right off the bat, you are paid one
month in arrears, so that 6-8 wk thing
makes it look worse than what it
really is. If you manage your last pay
and your annual leave right, you
should be OK. YES when you turn your
MRA your special supplement should
start. YOU ARE NOT GOING TO BE IN
FINANCIAL hardship...stop worrying,
it's going to be OK!! I know that
HRSSC is resending books, and I know
why but just don't stress about I, it
will all work out....trust me, it
will. Roseanne
Q 5. Hi
Roseanne, Would I receive the social
security supplement if i would retire
at age 55 with 20 years of service
with the post office. I'm in FERS.
Also how much penalty would I get in
my annuity doing this ?? Same question
but if I stay 5 more years and retire
at age 60 with 25 years of service.
Also do you have a website or face
book page to receive q & a from you ??
JM
A 5. If you are FERS, and
are retiring with the early out, you
would receive your supplement when you
turn your MRA, typically age 56 or 57.
There is no penalty on your age with
your FERS annuity IF going with an
early out.. Same answer except you are
fully qualified to retire (age 60 w/at
least 20 yrs). The only website is
postalmag.com, in which I write the
column. I don't answer jack *%$# on
FACEBOOK. Employment and retirement
questions are way too personal for the
entire famdamily on FACEBOOK to look
at, so..no. I will answer emails, just
as I have done here. Roseanne
Q
6. Hello Roseanne, I am 60 yrs. old.
and will be 62 in June 2014. I will
have 20yrs at the PO in August 2014.
Kind of a catch 22. I can retire now
with the minimum age +10. How big of a
hit is it if I go now or wait until I
have the 20 yrs. in 2014?e am a FERS
employee with about 150,000 in TSP
with a single plan for medical .
Obviously there is no bridge for
social security. I am sure you are
getting a ton of questions at this
time but if you could take a second I
would love to hear an answer. Thanks,
AM
A. 6. Hi AM, after I read
your email, the first thing I said
was, yep, that sucks. Your eligibility
is June 2014 (with age 62, with at
least 5 years), so although you will
have 20 yrs in August, you are able to
retire fully in June. (UNDERSTAND I AM
TALKING STRICTLY ABOUT ELIGIBILITY,
AND JUNE 2014 YOU ARE FULLY ELIGIBLE,
NOT AUGUST). Don't confuse the
eligibility with HOW your annuity is
computed. Still sucks...as far as the
early out for you, so I am telling you
DO NOT....DO NOT....DO NOT.. take the
MRA+10. It is a sucker move, I can go
through all the reasons of the why's,
but I am so swamped with emails and
individual counseling's, I don't have
the time to show specifically why I
say that. I just wanted to pop you an
email to stop you from doing that if
you were truly considering it. But to
answer your question, if you were to
retire MRA+10, your annuity would be
calculated at 1.1% X your H3 Av
Salary, divided by 12. Then you would
have it reduced by 4% (the reduction
is 2% for each year under 62). AND
THEN TO ME, the bigger loss is not
being eligible for the special
supplement and for you it would be
around $620-$680 per month. ARE YOU
not able to stick it out 2 years!!!
You have been through the hard part!!
Don't piss all those years away,
retirement too WORTH IT...DO YOU HEAR
ME...........Roseanne
Please have a safe & wonderful
Christmas, Peace to you and Your
Families....till we speak again,
Roseanne |
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