FERS social security supplement

[saturneptune]

The postal service shared services is very confused about the supplement. I have called three times and gotten three different answers about eligibility, so any help would be greatly appreciated.

The basic requirement for an immediate annunity is MRA and 30 years. The confusion is on what 30 years means. I have 23 y 2 mo with the postal service and bought 11 y 9 mo from the Navy for a total of 34 y 11 mo.

The first time I called, they told me only the 23 years counted towards the 30. The next time they said the 34 years counted towards the 30 and towards calculation. The third time they told me I was eligible with the 34 years, but only the 23 would count towards the amount. I believe the last to be true, but any help would be appreciated, since it is about an $800 per month difference. I can retire in August. Thanks for your time

 

[budnipper1]

You are right...Navy time won't be counted in calculation for supplement.

http://www.opm.gov/retire/html/library/ri90-8/RI90-8-3.asp
The special retirement supplement is paid in addition to gross monthly Federal Employees' Retirement System (FERS) annuity benefits. It represents what you would receive for your FERS service from the Social Security Administration (SSA) and is calculated as if you were eligible to receive SSA benefits on the day you retired. Eligibility for the annuity supplement continues until the earlier of (1) the last day of the month before the first month for which you would be entitled to actual social security benefits or (2) the last day of the month in which you reach age 62.

Eligibility for Annuity Supplement
If you retired voluntarily on an immediate annuity which is not reduced for age, you may be receiving a special retirement supplement which adds to your monthly benefit. You may also be receiving this supplement if you retired involuntarily before attaining your Minimum Retirement Age (MRA) or voluntarily because of a major reorganization, reduction in force, or an early retirement for Members of Congress. However, in these three instances, you were not eligible for the special retirement supplement until you reached your Minimum Retirement Age (MRA). If you are receiving a deferred benefit or an immediate MRA+10 benefit, you are not eligible for a special retirement supplement. If your annuity has a Civil Service Retirement System (CSRS) and a Federal Employees Retirement System (FERS) component, you can still receive an annuity supplement. However, you must complete one full calendar year of service subject to FERS computation rules. One full calendar year means any year which begins January 1 and ends December 31.
Computation of Annuity Supplement
The supplement is computed as if you were age 62 and fully insured for a social security benefit when the supplement begins. By law, the Office of Personnel Management (OPM) first estimates what your full career (40 years) social security benefit would be. Then we calculate the amount of your civilian service under FERS and reduce the estimated full career social security benefit accordingly.


For example, if your estimated full career social security benefit would be $1,000 and you had worked 30 years under FERS, we would divide 30 by 40 (.75) and multiply ($1,000 x .75 = $750). The result would be your special retirement supplement, prior to any reductions.
http://www.opm.gov/retire/html/library/ri90-8/RI90-8-3.asp

 

[saturneptune]

You are right...Navy time won't be counted in calculation for supplement.

http://www.opm.gov/retire/html/library/ri90-8/RI90-8-3.asp
The special retirement supplement is paid in addition to gross monthly Federal Employees' Retirement System (FERS) annuity benefits. It represents what you would receive for your FERS service from the Social Security Administration (SSA) and is calculated as if you were eligible to receive SSA benefits on the day you retired. Eligibility for the annuity supplement continues until the earlier of (1) the last day of the month before the first month for which you would be entitled to actual social security benefits or (2) the last day of the month in which you reach age 62.

Eligibility for Annuity Supplement
If you retired voluntarily on an immediate annuity which is not reduced for age, you may be receiving a special retirement supplement which adds to your monthly benefit. You may also be receiving this supplement if you retired involuntarily before attaining your Minimum Retirement Age (MRA) or voluntarily because of a major reorganization, reduction in force, or an early retirement for Members of Congress. However, in these three instances, you were not eligible for the special retirement supplement until you reached your Minimum Retirement Age (MRA). If you are receiving a deferred benefit or an immediate MRA+10 benefit, you are not eligible for a special retirement supplement. If your annuity has a Civil Service Retirement System (CSRS) and a Federal Employees Retirement System (FERS) component, you can still receive an annuity supplement. However, you must complete one full calendar year of service subject to FERS computation rules. One full calendar year means any year which begins January 1 and ends December 31.
Computation of Annuity Supplement
The supplement is computed as if you were age 62 and fully insured for a social security benefit when the supplement begins. By law, the Office of Personnel Management (OPM) first estimates what your full career (40 years) social security benefit would be. Then we calculate the amount of your civilian service under FERS and reduce the estimated full career social security benefit accordingly.


For example, if your estimated full career social security benefit would be $1,000 and you had worked 30 years under FERS, we would divide 30 by 40 (.75) and multiply ($1,000 x .75 = $750). The result would be your special retirement supplement, prior to any reductions.
http://www.opm.gov/retire/html/library/ri90-8/RI90-8-3.asp

Thanks for your response. Ok, I got the point about the Navy time in the calculation. The other point one of the shared service calls made is that the criteria for eligibility is MRA and 30 years. They said I could only use the 23 years towards the 30 for eligibility (not calculation). The other two agents I talked to said, yes I can use the total 34 years towards the 30 at MRA. Again, thanks for the first answer and anyone who knows this one, thanks.

 

[budnipper1]

Thanks for your response. Ok, I got the point about the Navy time in the calculation. The other point one of the shared service calls made is that the criteria for eligibility is MRA and 30 years. They said I could only use the 23 years towards the 30 for eligibility (not calculation). The other two agents I talked to said, yes I can use the total 34 years towards the 30 at MRA. Again, thanks for the first answer and anyone who knows this one, thanks.

For federal retirement eligibility under FERS, ALL federal employment time is counted towards MRA, including military service time. I didn't look for a reference link for this because I recently retired from the USPS and know first-hand how the system works. I had 3 years of army time and had to "buy" that time back so it would be calculated towards retirement. (that was not required under the old CSRS) Since I retired at age 60, only 20 years of federal service was necessary (instead of 30 years) to receive full retirement benefits without a penalty reduction. I worked just over 21 years with the Post Office and served 3 years in the Army, and all 24 years of that federal service were used for retirement calculation. Only the USPS time was used to calculate the Annuity Supplement. The military time was not used.

 

[saturneptune]

For federal retirement eligibility under FERS, ALL federal employment time is counted towards MRA, including military service time. I didn't look for a reference link for this because I recently retired from the USPS and know first-hand how the system works. I had 3 years of army time and had to "buy" that time back so it would be calculated towards retirement. (that was not required under the old CSRS) Since I retired at age 60, only 20 years of federal service was necessary (instead of 30 years) to receive full retirement benefits without a penalty reduction. I worked just over 21 years with the Post Office and served 3 years in the Army, and all 24 years of that federal service were used for retirement calculation. Only the USPS time was used to calculate the Annuity Supplement. The military time was not used.

Thanks again, and hope retirement is going well. I can leave in August.

 

[kistari]

The big question would be whether you paid in for your military time.

Kathy

 

[moneyfix]

I'm getting ready to retire from the U.S Potal Service under a VERA with 25yrs Ferderal Service. I am 46yrs old do I get my supplement if I retired involuntarily before attaining your Minimum Retirement Age (MRA) or voluntarily because of a major reorganization, reduction in force, or an early retirement . Please comment.

 

[XL-entLady]

Info regarding the supplement from the OPM website:

"If you transfer to FERS and you have at least 1 calendar year (January 1 to December 31) of FERS service when you retire, you will be eligible for the Special Retirement Supplement. The special retirement supplement (also known as the FERS supplement) is unique to FERS. It substitutes for the Social Security part of your total FERS benefit until age 62, when most people become eligible for Social Security. The purpose of the supplement is to provide a level of income before age 62 similar to what you will receive at age 62 as part of a Social Security benefit. The supplement stops at age 62 even if you are not eligible for Social Security. Like Social Security benefits, the supplement is subject to an earnings test, which means the supplement is reduced if your income from earnings or self-employment is higher than an allowable amount.

Eligibility Requirements


In addition to at least 1 full calendar year of FERS service, you must retire on an immediate annuity (that is, one that begins within 1 month of separation) under one of the following provisions to be eligible for the Special Retirement Supplement:

1. after 30 years of service at or after your MRA (minimum retirement age); or
2. after 20 years of service at or after age 60; or
3. under one of the special provisions for law enforcement officers, firefighters, air traffic controllers, or military reserve technicians; or
4. under discontinued service retirement or early retirement (that is, a major RIF, reorganization, or transfer of function) provisions. However, if you retire on a discontinued service or an early retirement, you will have to wait until you reach your MRA before you can begin to receive the supplement. Individuals who retire on disability or under the MRA + 10 retirement provision cannot receive the supplement. " [Emphasis added]

Hope that helps.

Lady

 

[Guest2]

under one of the special provisions for law enforcement officers, firefighters, air traffic controllers, or military reserve technicians; Lady

Ahhhh Yes, Law Enforcement. Now that helps !
With that and a dollar, I'll only have to borrow
Fifty Cents to get a cup of Java from Starbucks.
Not counting inflation, of coarse !

Still, I'll take every penny I can get !
(I don't really drink coffee from Starbucks anyway, Its too expensive)

 

[luv2read]

Ahhhh Yes, Law Enforcement. Now that helps !
With that and a dollar, I'll only have to borrow
Fifty Cents to get a cup of Java from Starbucks.
Not counting inflation, of coarse !

Still, I'll take every penny I can get !
(I don't really drink coffee from Starbucks anyway, Its too expensive)

McDonalds lattes are cheaper and almost as tasty....:toung:

 

[SkyPilot]

McDonalds lattes are cheaper and almost as tasty....:toung:

Actually, I prefer the house coffee at McDonalds now (large, 3 creamer, 2 Splenda).

Charbucks is too bitter, and McD's reblended a year or so ago, so for the $, good deal.

Here in Minnesota we have a chain called "Caribou" . My favorite is a Large, Lite White Raspberry. Mmmmmmm Mmmmmmmm.... (However, that's $4+, so I usually only get one every few weeks, mostly when we are going to spend a significant time at Kohl's, looking for discount clothing. I like the 80% off rack!)

 

[Guest2]

Many a family fight has occured when something other then
Chase&Sanborn is purchased in this household. There was no
Oil bubble in Commodities, it was my demand within the Coffee
Commodity thats inflated the price of oil to $115 per barrel,
just to transport it to my community. Geez, now I'm thirsty !