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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@icloud.com. |
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Postal Retirement
Q&A November 2013 |
Good Day Postal Employees - In sincere
gratitude, thank you all for the prayers that have
been said for Hope. She is a true fighter and this
month she begins her 6 weeks of daily radiation
treatments. Please continue to keep her in your
prayers and thoughts.
This month I would
like to start this column out a bit different.
First, as always, it's a real question from a real
employee, and secondly, its just sad.
Hi
Roseanne I am a CSRS postal employee with 42 years
of credible service. I have submitted my
retirement application to shared services
effective 11-30-2013. I will be 60 years old on
12-1. I have been with the federal service since I
was 17 years old. I do not qualify for Social
Security because I have only paid into that the 3
years I was in the military. I am considering
withdrawing my retirement application because of
the mess with the government shutdown (I figure
OPM will fall even farther behind in processing
applications now). Due to my many financial
commitments I cannot afford to wait a year or for
full retirement pay if they fall that far behind.
I will be getting around $12,000 for the lump sum
payout on my 440 hrs. of accumulated annual leave.
I had planned to use that to pay off my credit
cards, not to use for living expenses until I
receive my proper retirement. I have a comment and
two questions. I have read your post about
�getting out�, it seems you advocate leaving as
soon as we feel comfortable with the decision
because the PO is a sinking ship? I�ve gotten
tired of waiting for any type of incentive for the
carriers to go. Your thoughts on that? Now, my
questions; if I decide to retire, and take some
low paying part-time job, could I theoretically
qualify for SS benefits somewhere down the road,
and if so, wouldn�t they be reduced because of the
reduction we face being federal retirees?
Second question, I have applied for two scheduled
awards, and although it's been a struggle, now,
I�m trying to decide if it is even worth the
hassle filing an appeal on this situation? I�m
sure the first injury probably contributed to the
second injury. Your thoughts please. I guess I
will be in for a long fight if I decide to appeal
this mess. Thanks so much for your thoughts and
advice!
A. HI POSTAL EMPLOYEE
First�you sound so defeated!!! AND you are a
person - WHO SHOULD NOT FEEL THIS WAY-AND YOU DO,
BECAUSE YOU HAVE NOT TALKED TO ME!!
I do
understand the government shut down, but that will
NOT be going on very long. Many in the federal
workforce can work from home, and that this right
here is just political BS!! You and I are about
the same age, and we have seen this before in the
political arena. We lived through the vast changes
that Pres. Reagan put forth, that radically
changed the entire federal retirement system, as
well as the 1986 tax code change that eliminated
the deduction of interest, other than mortgage
interest on our taxes. Probably by today's
standards, Reagan would be considered a Moderate -
so look how things change. Send me your phone
number with area code, (and what state you are in
for time zone purposes). I think based on this
email, a conversation would do you better than me
writing to you. I know from experience�that when
employees hear me talk, they instinctively KNOW, I
know what I am talking about. I can help you get a
better grip of what is going on and how to set a
plan to accomplish it. It doesn't matter if you
used my services or not. I just want to help you
get the most out of your retirement and set you on
the correct path. Roseanne
WelI�I called
him. And after we spoke for a bit, he told me he
pretty much fell on the floor in disbelief, when
he answered the phone and found out it was me. He
couldn't believe I would take the time to call
him, even though I asked for his phone number. One
of the first things I said to him was thank you
for all your years of service, both federal and
military. He told me no one has ever told him
that, just those few words of gratitude. When we
were speaking he told me that really couldn't take
the way the post office operates anymore, and that
leadership was pathetic. Placing unrealistic
demands, in time frames that were even more
ridiculous. He had pretty much made up his mind
that he was retiring, and did not pull the plug on
his retirement paperwork. He sounded like so many
of you out there.. EMPLOYEE FRUSTRATION�His
complaint was just the lack of any information on
wholesale level. Not just retirement information,
but what the USPS will look like in the future.
Again, it's no different than many of you that
write me. Not to ask a specific question, just
some confirmation, that the organization will
bounce back. It's not like I am telling any of you
out there HOW bad it is YOU TELL ME! AND truly, it
is the same story, about the same supervisor, same
exact manager or Postmaster or POOM!
The
Post Office, an agency that was built literally to
"transport information"�.YES MAIL was transporting
information, and for years WE were the ONLY
transporters of information. There was no TV, or
radio in the beginning�.no internet�no twitter�no
Facebook�.it was just the MAIL. And now the very
same agency has thousands of employees that feel
they have no information or not enough of the
right or pertinent information in order to retire
or make a decision to stay. And one thing on the
government shut down�.we are federal employees and
we will work�.even if you tell us not to, we will
work�even when you threaten you won't pay us, we
will work, and we will talk trash all day
long�.but federal workers we will work!
In
the conversations, both verbal and written, with
you out there, retirement information seems to be
the most confusing. It is most definitely because
of crossing information on CSRS and FERS. I was
told that by an HRSSC employee that all questions
are answered when the employees are on this
retirement phone line session, and I do believe
that. But my response was "SO what if they DON'T
know what to ASK? Because it's those same
employees writing me that have already HAD their
retirement session on the phone!
Setting
the record straight� Yes there is retirement
information out there, and you do have to look,
beginning with information on liteblue; and you do
have the HRSSC phone session, not necessarily
personal; AND yes, there are those good video's
made several years ago, very-very informative
and�..at the end of the day�.it's still all POSTAL
STEW�.AND�...I STILL WRITE THIS COLUMN!!!
Q
1. Hello Roseanne, I am a city letter carrier, but
began my career as a mail handler. I started on
6/18/1988 but for 25 years my retirement date was
11/12/1987. Then on July 15, 2013, I received in
the mail a PS Form 50 action that was changing
11/12/1987 to 6/18/1988. CBB must be completed to
receive credit towards RCD and ACD. I was a casual
during that time in1987 before being converted
from a hiring register to a PTF clerk. Do you have
any suggestions. Thanks much, VRL
A 1. Hi
VRL, I suspect that based on the dates you gave
me, that it was on 11-12-1987 you became a casual.
I suspect that on 12-31-1987 was the end of your
appointment and then on 01-01-1988, perhaps you
were reappointed as a casual. Then WITHOUT A BREAK
in service you were converted to a career employee
on 06-18-1988. You didn't tell me WHAT EXACTLY
changed�meaning "precisely what on the form 50 was
changed. If you go to ANY OTHER form 50 (prior to
this one), that ONE piece of "data" should be
different than this new form 50. It could be the
EOD (enter on duty date) (and typically that is
what it is). I bet if you look that is possibly
what it could be. Another could be the ACD and/or
the RCD (on any of previous form 50's showed) was
11-12-87. That "CBB must be completed to receive
credit towards RCD and ACD" is informing you that
you can buy it back. No doubt, this change, is
about correcting bad data in your form 50 history,
that somehow maybe they just caught. Let me ask
you a question, have you done ANYTHING to generate
this type of change? For example, request an
annuity estimate for retirement? Anything like
that? Thanks, Roseanne
R 1. Hi Roseanne,
Now that was an amazing answer and quick. I
checked my personnel folder on internet and I was
a casual, for about 4 months in 1987, and then I
was on my 90 day probation period then I was hired
on 6/18/1988. I would like to know if I can get
credit for those months towards my retirement I
did call HRSSC and request a beneficiary package,
but other than that, nothing. I have not changed
jobs and have not bidded on any vacant jobs
either. I like many of the readers of this column
and this magazine, are disgusted on the direction
the post office is taking. We are SO not what we
used to be. Again, you are spot ON!! VRL
A
1a. You are welcome. Yes, you can repay your prior
non-career time, that is what the CBB was
referring to. You could repay the amount (of
course it would be with INTEREST) and if you are
looking to do that, I suggest you get started now,
just to find out how much it would be. Then see
how long it would take for you to recoup the money
spent for those 7 months of casual time. For you,
its a little over one-half percent added. Roseanne
Q 2. Hi Roseanne. I just read the article in
Postal Retirement Q&A for Oct -2013 on
PostalMag.com. I hate to admit my ignorance on the
subject, but I have questions about early
retirement. In the Q&A section, you told someone
that there is a 5% reduction per year for early
retirement under FERS. I've heard for years that
FERS has a 2% penalty per year, while civil
service is 5% per year. I am under FERS, so which
is correct- 2% or 5% ? Also, I'm 46, my start date
was 10-11-97, so what is my Minimum Retirement
Age? Our Human Resources offices were drastically
cut several years ago, and no one can give us
straight answers at our plant. Thanks in advance.
JR
A 2. HI JR, YES that is drastically
wrong information on CSRS and FERS! It is a 5%
reduction for each year under age 62 (FERS) if you
were to retire under the MRA+10 type of
retirement; and would NOT EVER be eligible for the
special supplement. If an early out occurs and you
are UNDER your MRA, (because and ONLY because of
THAT early out, there is NO 5% reduction on the
age) & you DO GET the special supplement. IF not
yet your MRA (again under early out), when you
reach your MRA you would begin to collect the
special supplement.
CSRS�.you simply CANNOT
RETIRE UNLESS you are 1. Age 55 with 30 (or more
years) or 2. Age 60 w/(20 or more years) or 3. Age
62 w/5 (or more years). If you are a CSRS employee
and offered an early out and are NOT YET 55, CSRS
has a 2% penalty for each year under age 55. If
you are over 55, as was I when I retired (CSRS)
with less than 30 years (almost 27) there is no
reduction at all. Your retirement is simply
calculated by the formula and the years�(again
provided you are 55).
THAT ABOVE IS WHAT
IS CORRECT�.If you were born in 1967, your MRA is
56 and 6 months. And that too is the correct
answer! Roseanne
R 2. Wow. My wife (also a
postal worker) and I were both wrong. Lesson
learned. Thanks so much and God Bless you.
Sincerely, JR
A 2a Hi JR, It feels good to
know I have been able to set information straight
so that employees have real information to make
important retirement decisions on. You know, when
we reach the ages that begin to take us closer to
retirement, it's too important to NOT know
everything�we are too old to try to recoup
financial mistakes, especially in retirement.
Roseanne
Q 3. Hi Roseanne, Thank you so
much for this column of valuable information My
question: With all the crazy things happening at
the Post Office now, I have been looking into
retirement for the past few months. I was told I
could "buy back" my casual time. It's very
confusing. Please help. Would it be worth my $$ to
buy it back? In what case would it NOT be good or
just be worthless to buy it back?
My case:
I was a casual from Sept 1986-March 1987--exactly
6 months- making $5.00 hour. I worked at least 40
hours per week. I had just turned 30 when I became
a PTF. So now I'm 56 (MRA) with 26� years of
service. How much is this going to cost me to buy
it back? and then of course there's interest too.
Is it worth it for me to buy it back? Will I gain
more $$ per month at retirement by doing this
(with or without an early out) or will I just be
able to retire 6 months earlier? OR neither?????
or BOTH?? Good? Bad? this is the first I've heard
that I can "buy" the time back-similar to military
time. Many of us were casuals before we became
career employees. Some for 2 months, some up to 2
years. Please help!! CE
A 3. I will give
you my opinion on this issue of FERS buying back
very small periods of non-career
employment....DON'T BOTHER. I can go into all of
the why's, do all the calculations for an exact
amount owed and what the net "worth" of that buy
back as it relates to your overall monthly annuity
in retirement, and typically, it's just NOT worth
it. In my opinion, it's not enough to be dealing
with only 1/2 of 1%. Several years ago, I did
retirement sessions for HQ employees. In one
session, a CSRS employee who had been trying to
buy back casual time since (beginning the process
OF buying it back with HRSSC), 2007 or 2008. It
too was 6 months and in 2011, and the employee
still had not received paperwork to initiate the
buy back. It was as if they couldn't find it to
calculate it. Without the amount of the initial
payback (earnings), there is no way to calculate
INTEREST OVER THE LAST 32 - 33 years. So you asked
my opinion�.it ain't worth it�.one month !! I did
calculations today, on one of my clients, with a
High 3 average salary in the 60G range, and those
six months of casual time bought back, gets you
around $4.00 per month extra OK, it IS for the
rest of your life�..but $4 bucks a month!!
�.retire�the hell with those 6 months of casual
time. Roseanne
R 3. Thank you for the quick
answer.......but......... it's not really about
the 20-25 extra dollars. I was really more
interested in the time. I am already 56 so I have
the MRA, but I won't have the 30 years till I'm
60. Without an early out I will have to have 30
years in. this would put me 6 months closer. A few
people did it here in the January early out. One
said 1 year of time cost her $83 plus $380 in
intreast and fees. (She just turned 56); and it
was taking 18-24 months to recoup that money, @
$20-24 extra per month. She felt it was worth it,
since she was still so young. She DID say it took
20 months to get it all straight. BUT like I said,
I really was only thinking it would put me 6
months closer to my 30 years.....without that
early out. SO still don't bother???? I value your
opinion. Thanks, CE
A 3a Hi CE, I am bit
confused as to why the 6 months is so important to
you?? By the time you get to be 60, it's still
full retirement�because full retirement is age 60
with at least 20 years and you would have that�.so
that is why I don't understand your stressing
about these 6 months.
HERE is FERS
FULL Retirement AGES and Years
MRA w/at
least 30 years
Age 60 w/at least 20 years
Age
62 w/at least 5 years
So do you see why I
am confused�I didn't give just you a quick answer.
I read your question entirely before I answered
it. And my answer still stands about just 6 months
of buying it back�.not just the few dollars it
gains, but all the time it takes to get it worked
out. YOU and I were similarly situated in terms of
years and age (except I am CSRS); hired when I was
29, and so for me, 30 years put me able to retire
at age 59. If I was a casual for 6 months, prior
to my career appointment, and was able to buy it
back, I still wouldn't�because in a few months I
would have been 60, and for CSRS also at age 60
w/20 or more years, it is FULL retirement, the
same as FERS. I guess this statement should be
made, "if you are age 60 you don't have to work 30
years to be eligible to retire", at age 60 you
only need 20 years, and you more than have that. I
hope these examples will help you understand why I
came to the conclusion I did. As well as the other
REAL conclusion for FERS�it's about 4.00 per month
more�..just saying...Roseanne
Q 4. Hi
Roseanne, A friend suggested I email you with my
questions. I am a FERS employee with 29 years as
of Jan. 2014. I was a level 11 Postmaster until
two years ago. At that time we heard that our
offices would be 4 hour offices. I went to a
meeting and the MPOO for our area said, if you go
out and get trained in the city delivery and
larger offices, you WILL get a job. Long story
short, I have been managing Level 18 offices for
the past 2 years. When these offices come open I
then apply as the OIC. So far these jobs have gone
to District people looking for a job. I was then
given the advice to apply for a six hour office,
which I got. Well I did and didn't want this level
office, but felt that getting my 30 year
retirement benefits was the only way to go. I have
never worked in this Level 6 office and have
continued still to OIC a level 18 office. My
question is this. Do these two past years apply to
my high 3? And secondly, this office I am OIC'ing
in, will come open in Jan 2014. The person who got
the position has decided to retire at the end of
the year. Do I stay and apply once again, or do I
as you say RUN for the door and retire? I would
have never thought my career would end this way.
Thank you for your time. And my prayers go to you
and your family at this time. Please email or call
at your convenience. LT
A 4. Hi LT, There
are couple of things to understand�first�the
annuity estimate is just that...an "estimate".
What it really is though,�.is just a "snap shot"
of the last 3 years of your form 50 history, (even
if they are NOT your high 3). That being said, as
in your case, you may be on paper (on paper means
what is on your form 50) any level, and that is
what the annuity estimate WOULD reflect. But in
reality, OPM will go by your earnings in that
particular level - for the period of time you are
in the higher level, (minus overtime, Sunday Prem,
or Night D). OPM reviews ALL your earnings. Better
said, if you are on "higher level" (look on your
paycheck) and are truly working in a level 18
capacity, that will be counted as your high 3
(once the pay records reach OPM).�and that takes
care of that answer�I hope. One thing that always
seems to be missed when we talk about high 3 is
that when calculating the high 3 and there is
"higher level", that it is your CONSECUTIVE HIGH 3
AVERAGE SALARY�or ANY of your high 3 years in a
ROW, so that takes care of that answer,
hopefully...
As far as should you go for
the PM position that you are an OIC in right now,
when the office becomes vacant in January?
�.Totally a crap shoot!�By your OWN
admission�these jobs are OBVIOUS landing spots for
district employee's (and the closer you are to the
DC area) headquarters employee's landing spots as
well. If it were me, I would retire!! The longer
you remain in a position NOT working 40 hours a
week, it will consistently decrease your high 3
average salary, as it will be subject to the
proration factor�.you have NO idea what is in
store for you down the road. I did a retirement
that showed a PM who worked 5 more years, and due
to the proration factor, she grossed $5.00 more
per month by staying (5 yrs.) �.why�.the proration
factor. And I want to thank you, for thoughts
prayers and concern that has been expressed for my
daughter Hope.
Until we speak again���.
Roseanne |
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