CONTENTS. Chapter 1 Introduction and General Overview... 1 Employee Responsibilities... 1 Agency Responsibilities... 1

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1 CONTENTS Chapter 1 Introduction and General Overview... 1 Employee Responsibilities... 1 Agency Responsibilities... 1 Chapter 2 What All Employees Need to Do Early in Their Careers... 3 Knowing When You'll Be Eligible to Retire...3 Knowing What Your Annuity Will Be...4 Changing and Verifying Necessary Personnel Forms... 6 Deposits for Temporary Time... 7 CSRS Deposit Service... 8 CSRS Effect of Making a Deposit... 9 FERS Deposit Service How to Make a Deposit for Non-deduction Service Chapter 3 What You Need to Know About Redeposits Redeposit Service Under CSRS or CSRS Offset Refunded Service Ending before Oct. 1, Refunded Service After Sept. 30, Partial Redeposits Redeposit Service Under FERS Chapter 4 Military Service and Military Deposits Military Service Creditable Under CSRS Conditions for Receiving Credit for Military Service Waiver of Military Retirement Pay Conditions for Receiving Credit for Post-l956 Military Service Receipt of Military Retired Pay Post-1956 Military Service of Employees Hired After Sept. 30, Post-1956 Military Service of Employees Hired Before Oct. l, Amount of Service Credited Concurrent Military and Civilian Service Military Furlough iii

2 FEDERAL EMPLOYEES RETIREMENT GUIDE Military Service Creditable Under FERS Service Credit Payments for Post-l956 Military Service CSRS Who Can Make a Military Service Deposit? Procedure for Making the Military Deposit Planning Tip Paying the Deposit Computing the Amount of Creditable Military Service Determining the Amount of Basic Pay Computing the Military Deposit CSRS General Rules for Computing the Interest Due Computing the IAD Computation of Composite Interest Rate for Employees First Employed Under CSRS on or After Oct. 1, Establishing the Deposit Account Completed Payments Planning Tip FERS-Covered Employees and Military Deposits Military Service Subject to FERS Military Service Deposits Who Can Make a Military Service Deposit? Computing the Interest Due Refund of Military Deposit Contacts for Documentation of Actual Military Earnings Chapter 5 Five-Year Period Before Retirement Continuing Health Benefits Enrollment Into Retirement Continuing Life Insurance Coverage Into Retirement Considerations for Long-Term Care Insurance Verifying Civilian and Military Service Deposits for Civilian and/or Military Service Documentation of Social Security Coverage Considerations for the Thrift Savings Plan (TSP) iv

3 CONTENTS Contributing to Roth IRAs Estate Planning Considerations Chapter 6 One-Year Period Before Retirement Completeness/Accuracy of Health and Life Insurance Records Confirming Your Eligibility to Retire Reviewing Survivor Benefit Considerations FERS Employees Who Elect Immediate Retirement Under MRA + 10 Retirement CSRS Voluntary Contribution Program (VCP) Annuity Estimates Planning Tip Cost-of-Living Adjustments (COLAs) TSP Withdrawal Options Effect of Social Security Benefits on CSRS Offset Employees Lump-Sum Payment of Annual Leave Federal Income Taxes State Income Tax Withholdings from Annuity Checks Office of Workers Compensation Payment (OWCP) Benefits Six-Month Period Before Retirement Two-Month Period Before Retirement Retirement Application Process and OPM Responsibilities OPM Processing of Applications Chapter 7 Insurance Issues Facing Federal Retirees FEHB Coverage After Retirement Contacting FEHB Plans Federal Dental and Vision Insurance Program Life Insurance During Retirement Through FEGLI Federal Long-Term Care Insurance Program v

4 FEDERAL EMPLOYEES RETIREMENT GUIDE Chapter 8 Cost-of-Living Adjustments CSRS Proration of the First CSRS or CSRS Offset COLA Survivor Annuities Spouse, Former Spouse, Insurable Interest Survivor Annuities Children Miscellaneous Provisions for CSRS Annuitants FERS Proration of First FERS COLA Transfer Employees with a CSRS Component Survivor Annuities Spouse, Former Spouse and Insurable Interest FERS Disability Annuitants Re-employed FERS Annuitants Chapter 9 The Thrift Savings Plan After Retirement General Withdrawal Rights and Procedures Withdrawal Options Monthly Annuity Amounts Spousal Rights Withdrawal Requests Transferring Your TSP Account Taxation of Withdrawals Reporting Changes in Personal Information Leaving Your Money in the TSP TSP, Beneficiaries and Death Benefits Required Minimum Distributions What Happens During Your First Distribution Calendar Year What Happens During Your Second Distribution Calendar Year What Happens During Third and Subsequent Years TSP Materials and Contacts vi

5 CONTENTS Chapter 10 Federal Annuitants and Social Security Coverage of Federal Employees Earning Social Security Credits Paying Taxes and Reporting Earnings Monthly Benefit Payments Computation of Social Security Benefits Pros and Cons of Taking Social Security Retirement Benefits Earlier Than One s FRA Benefit Estimates Social Security Survivor Benefits Dependent Benefits The Earnings Test Windfall Reduction Benefit Computation Government Pension Offset (GPO) for Spousal Benefit One-Time Death Benefit Payment Applying for Social Security Retirement Benefits When Benefit Payments Start Contacting Social Security Chapter 11 Federal Annuitants and Medicare Health Insurance Benefit Changes After Retirement Medicare Medicare Enrollment Issues Medigap Enrollment Issues Which Pays First? FEHB Enrollment Issues Medicare Managed Care Plan Issues Chapter 12 - Re-employment of Annuitants General Rules Governing the Re-employment of Annuitants Effect of Re-employment on a CSRS Annuity Effect on FERS Annuity vii

6 FEDERAL EMPLOYEES RETIREMENT GUIDE Re-employment Under Broad Based Authorities Agency-Based Exceptions Other Exceptions Leave Accrual Supplemental and Redetermined Annuities Special Considerations Disability Retirees Health Insurance Life Insurance Long-Term Care Insurance Dental and Vision Insurance Flexible Spending Accounts Thrift Savings Plan Buyouts Employment in the Private Sector Appendix Checklist for Employees Preparing to Retire One Year or More Before Retirement The 10 Smartest Things Things You Can Do As You Approach Retirement Address for General Inquiries Addresses for Specialized Retirement Functions CSRS and CSRS Offset Employees: Annuity Estimates You May Need FERS Employees: Annuity Estimates You May Need Information About Federal and State Income Tax Withholdings viii

FEDERAL EMPLOYEE RETIREMENT GUIDE Chapter 1 Introduction and General Overview 10 Employee Responsibilities 10 Agency Responsibilities 10

FEDERAL EMPLOYEE RETIREMENT GUIDE Chapter 1 Introduction and General Overview 10 Employee Responsibilities 10 Agency Responsibilities 10 TABLE OF CONTENTS Chapter 1 Introduction and General Overview 10 Employee Responsibilities 10 Agency Responsibilities 10 Chapter 2 What All Employees Need to Do Early in Their Careers 12 Knowing When You