Check In with Social Security Early

[jpcavin]

For employees who are covered by FERS or who are "Trans"FERS*, no matter which day of the month an employee retires, retirement takes effect on the first day of the following month with the first annuity check dated on the first day of the following month. For example, a FERS employee retires on Jan 1, 2010. Retirement takes effect on Feb. 1, 2010 and the first annuity check will be dated Mar. 1, 2010. If, however, the employee retires Dec. 31, 2009, then retirement takes effect on Jan. 1, 2010 and the first annuity check will be dated Feb. 1, 2010. In other words, in this example retiring one day earlier at the end of December results in the first annuity check being issued one month earlier.

http://www.myfederalretirement.com/public/315.cfm

Does this just apply to Dec 31 retirements or is Dec 31 used as an example. Would the following scenario also be correct...
If one retires Nov 30, then retirement takes effect on 1 Dec and the first annuity check will be dated 1 Jan ?

 

[Zebra]

Hmmm? It has not happened as Valkyrie has explained below for me. For Example, I retired 31 Dec 10 and it is now Feb. 13th and I have yet to receive any retire pay.

 

[Kaufmanrider]

Plenty of SHORT Guys here, have patience it will be GREAT!

Not wanting to damper any ones hopes, but here is what I have heard. A memorandum went out to our Agency CEO's just last week. I did not personally see it, but I did get my information from someone who did.

OPM is predicting up to a one year wait for the processing or retirement. Currently, it is taking up to 6 months due to the back log. OPM had hoped to hire more people and authorize overtime to try and catch up, but with the CR and and outlooks for a budget??? the rest of the year, the backlog is supposed to grow up to 100,000.

I have been told you'd be lucky (even with the supposed increase in interim payments promised by OPM) to receive 60% of what you should receive as interim payments. However, the good news is that they only take federal tax out. Health benefits are not deducted. You will keep your health benefits and when OPM settles up and you get your lump sum to make up for the difference between your interim payments and what you actually should have received for retirement they will deduct the health benefits.

And for those of us that go at the Minimum Retirement Age or younger (Law Enforcement) you do not get the Social Security Supplement from OPM while your receiving the interim payments. Yes, you will get it eventually, and they will give you a lump sum for the months you were receiving interim payments when they finally give you your official retirement payment.

I wonder why this issue has not been front and center with FEDSMITH, FEDERAL TIMES, the National Association of Retired Federal Employees, etc., etc?

I have a couple years until I am first eligible. Who knows, by then the back log might be even longer???????

 

[SkyPilot]

Not wanting to damper any ones hopes, but here is what I have heard. A memorandum went out to our Agency CEO's just last week. I did not personally see it, but I did get my information from someone who did.

OPM is predicting up to a one year wait for the processing or retirement. Currently, it is taking up to 6 months due to the back log. OPM had hoped to hire more people and authorize overtime to try and catch up, but with the CR and and outlooks for a budget??? the rest of the year, the backlog is supposed to grow up to 100,000.

I have been told you'd be lucky (even with the supposed increase in interim payments promised by OPM) to receive 60% of what you should receive as interim payments. However, the good news is that they only take federal tax out. Health benefits are not deducted. You will keep your health benefits and when OPM settles up and you get your lump sum to make up for the difference between your interim payments and what you actually should have received for retirement they will deduct the health benefits.

And for those of us that go at the Minimum Retirement Age or younger (Law Enforcement) you do not get the Social Security Supplement from OPM while your receiving the interim payments. Yes, you will get it eventually, and they will give you a lump sum for the months you were receiving interim payments when they finally give you your official retirement payment.

I wonder why this issue has not been front and center with FEDSMITH, FEDERAL TIMES, the National Association of Retired Federal Employees, etc., etc?

I have a couple years until I am first eligible. Who knows, by then the back log might be even longer???????

To your point...
http://www.executivegov.com/2010/10/opm-retirement-backlog-berry-adds-80-workers/

Also, contact your Senator's office... A congressional inquiry on your behalf will move your paperwork to the top of the heap! Anyone who has had to answer a congressional inquiry knows what I mean = )

 

[alevin]

my boss announced she's pulling the plug midyear. hope things go okay for her. as for me, by the time i retire, worst of the boomer retirement wave will be digested, i expect things will go pretty smoothly, bugs worked out, fers process routine. either that or i never get to retire, or i'll be working a private sector job a whooole lot sooner due to shrinking unsustainable tax base. may we live in interesting times.

 

[david.alan.williams]

This is good to know! Sounds like we need to line up a job in advance and work until the Fed checks and SS starts coming in. The last thing I want to do is accumulate debt the first year I'm retired.

D

 

[brooksmd]

When I retired Dec 31, 2010, my counselor at HRSSC told me I would get about 80% of my expected retirement payment MINUS health ins. Now if you have dental and vision add-ons, those payments are suspended until they have your retirement straight at which time they will collect the back premiums. I received letters from both about that. But yes they will deduct health ins from day one. I did get my first reduced retirement payment from OPM about the first of Feb. First SS payment expected last Thur of the month.

 

[brooksmd]

This is good to know! Sounds like we need to line up a job in advance and work until the Fed checks and SS starts coming in. The last thing I want to do is accumulate debt the first year I'm retired.

D

It's called planning. My sell back of 2 months of annual and eliminating small debts (credit card, etc,) prior to retirement, put me in great shape until OPM has things straight. And remember if you retire the last day of the month you get first retirement payment a month later. Retire first of the month and you'll wait 2 months.

 

[Zebra]

Brookmd,

Me 2, if OPM ever decides to pay me, muhahahaha. Good think I don't owe anyone anything, plus having Social Security, TSP and Military retire pay covers our needs.

It's called planning. My sell back of 2 months of annual and eliminating small debts (credit card, etc,) prior to retirement, put me in great shape until OPM has things straight. And remember if you retire the last day of the month you get first retirement payment a month later. Retire first of the month and you'll wait 2 months.