FERs Retirees, anyone?

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Scout333 said:
For the social security tax piece SS Taxes were taken out on the AL lump sum payout and benefits were adjusted after the next year W-2 was issued. i.e. if you retire 12-31-2013 and receive your lump sum AL payout 1-31-2014 when you receive your 2014 W-2 which includes the AL lump sum payout in 1-31-2015 or so. I received an adjustment to my SS benefit approx. 4-2015 or so. Shortly thereafter I received a letter asking for a large repayment of my benefits since I received a w-2 with wages in the year I received the AL lumpsum. It actually does not count as wages for the earned income cap but it took several calls and letters to get it straightened out. I never had to repay any of my SS benefits as I got it fixed before the deadline passed. Hope this helps!
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Thanks. OPM SAID AL payout will not count against supplemental income. You mentioned SS, are you talking about Social Security? If so, that is good to know that AL payout doesn't count against Social security benfits, too.

My next question is, did they take out social security taxes (contribution) from the AL payout?
 
"For the social security tax piece SS Taxes were taken out on the AL lump sum payout "

Maricar19, As noted they did take out social security tax on the AL lumpsum payout.
 
Scout333 said:
"For the social security tax piece SS Taxes were taken out on the AL lump sum payout "

Maricar19, As noted they did take out social security tax on the AL lumpsum payout.
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Thanks for the great info. Sorry, I was confused if that's the one that you had to straighten out.

Anyway, now that I understand fully... That means if I retire at the end of any year, because of AL payout..another year will be automatically added to my SS contributing years and I can Enjoy my 1st year of retirement sans any work, and then find a part time the following years until I make the 35 years... Sounds like a plan for me!
 
Just took a postponed retirement - FERS Supplemental Social Security (FERS SSS) element is also available under OPM rules for personnel retiring with 20+ years of service at age 60 under postponed retirement. I know I'm still waiting on it, however, the rules clearly includes the 20/60 situation and OPM confirmed my eligibly.

To this date, I have not seen any where to apply for FERS SSS. My cover retirement documents cover letter to OPM certainly noted that I wanted FERS SSS. Eventually, I stopped looking for a form or site and was able to make request over the phone to OPM. Still waiting however.

Just hope OPM pays me retroactively to last March. Also, as far as I can tell, gains from stocks are not considered wages - thus, don't deduct from FERS SSS payments, like wages from employment do.

Note to the wise - keep a copy of all your correspondence and notes of phone call - and follow-up.
 
I plan on retiring 31 Dec 2015 -- 56 (MRA) +36 years (bought military time back) -- The projected amounts that I received from personnel do include the annuity supplement, however I've learned they are normally a good bit lower than your projected SS at 62; and in my case, a whole lot lower, because the supplement formula only takes into account my civil service time, not any military time that I bought back (16 years). But hey, it's free money until SS rolls around. Also, if you work after retirement and make more than the allowed amount (14K sticks in my mind) -- for every dollar you make over the allowed amount, they take away from your supplement until it's at zero, but they stop there and don't touch your annuity.
 
BamaAF said:
I plan on retiring 31 Dec 2015 -- 56 (MRA) +36 years (bought military time back) -- The projected amounts that I received from personnel do include the annuity supplement, however I've learned they are normally a good bit lower than your projected SS at 62; and in my case, a whole lot lower, because the supplement formula only takes into account my civil service time, not any military time that I bought back (16 years). But hey, it's free money until SS rolls around. Also, if you work after retirement and make more than the allowed amount (14K sticks in my mind) -- for every dollar you make over the allowed amount, they take away from your supplement until it's at zero, but they stop there and don't touch your annuity.
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Hi, my spouse is in the same boat. If he retires at the end of the year, He will only have 22 postal years, although for annuity computation, He will have 32 years. So I estimate that He will only get 55% (25/40) of supplemental. It might be a lot lower because He will not have the 35 SS years at 56. He will only have 32 SS years.
 
BamaAF said:
. Also, if you work after retirement and make more than the allowed amount (14K sticks in my mind) -- for every dollar you make over the allowed amount, they take away from your supplement until it's at zero, but they stop there and don't touch your annuity.
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its the same as the SS earnings test limit, which I think this yr 2015 is 15,700. it goes up each yr. go to ss site to see exact #. I think opm deducts $1 for every $2 over the limit??
 
Valkyrie said:
its the same as the SS earnings test limit, which I think this yr 2015 is 15,700. it goes up each yr. go to ss site to see exact #. I think opm deducts $1 for every $2 over the limit??
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Correct they take $1 for every $2 over the limit until there is nothing left. It will also add more years for your SS when you finally collect it.
 
I think that is correct - limit is over 15K now (shows how long ago I went to retirement class)


Valkyrie said:
its the same as the SS earnings test limit, which I think this yr 2015 is 15,700. it goes up each yr. go to ss site to see exact #. I think opm deducts $1 for every $2 over the limit??
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I am a FERS employee and have 30 years of service as of December2015 and I have reached my MRA.
I plan to retire on March 31 2016.
Will my earnings ($20,000) from January-March 2016 affect mysupplemental annuity?
Does it mean that I won’tbe receiving supplemental annuity for 2016 and have to wait for 2017
 
Maricar19 said:
I am a FERS employee and have 30 years of service as of December2015 and I have reached my MRA.
I plan to retire on March 31 2016.
Will my earnings ($20,000) from January-March 2016 affect mysupplemental annuity?
Does it mean that I won’tbe receiving supplemental annuity for 2016 and have to wait for 2017
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MC, see https://www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c051.pdf .
To quote page 15, "D. When Reduction is Assessed
[FONT=Compugraphic Times,Times][FONT=Compugraphic Times,Times]A reduction in the retiree annuity supplement in a given year is based on excess earnings in the previous year.
[/FONT][/FONT]The reduction is assessed beginning with the year immediately after the first year during which a retiree became entitled to the annuity supplement (or reached the MRA if already receiving the annuity supplement before the MRA).
EXAMPLE 1: Tom retired in June 1993 at age 57 with 30 years of service. He is eligible for an annuity supplement. His earnings in 1993 are subject to the earnings test. If his post-retirement earnings exceed the 1993 exempt amount of $7,680, his annuity supplement for 1994 will be reduced."

So if I read this section correctly, you will get your full Supplement through 2016. If you get wages AFTER you retire in '16, those wages go against the reduction rules and affect your Supplement in 2017.

To be sure, of course, it would be best to contact a benefits counselor. :cool2:
 
Maricar19 said:
I don't intend to work in 2016 after retirement. But will my spouse's wages be included in the mix since he will still be working?
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Short answer is 'No".
Long answer is that I have not seen anything in writing on that question in the TSP, but since the FERS Supplement is supposed to make up for the SS shortfall till 62, and SS does not look at spouse's wages for any reduction, so I pretty much would bet that FERS does not either (whether filing joint or not). Still best to check with the Benefits Counselor to be sure.
 
Yes, to get your approximate supplement, you divide your number of federal service years by 40. The quotient or the result is then multiplied by the estimated ss benefits from the quick calculator.

Skorcher said:
Do you take that amount from the calculator and multiply it by # years federal service/40 yrs to get a rough estimate of your FERS supplement?
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Maricar19 said:
If you think you won't have at least 35 years of earnings, here is a quick calculator to see how much less you will be receiving for your SS benefits at 62.

Quick Calculator
Click to expand...
 
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