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 ll Be Eligible to Retire 12 Knowing What Your Annuity Will Be 13 Changing and Verifying Necessary Personnel Forms 15 Deposits for Temporary Time 16 CSRS Deposit Service 16 CSRS Effect of Making a Deposit 18 FERS Deposit Service 18 How to Make a Deposit for Non-deduction Service 20 Chapter 3 What You Need to Know About Redeposits 20 Redeposit Service Under CSRS or CSRS Offset 20 Refunded Service Ending Before March 1, 1991 21 Refunded Service After Feb. 28, 1991 22 Partial Redeposits 23 Redeposit Service Under FERS 25 Chapter 4 Military Service and Military Deposits 25 Military Service Creditable Under CSRS 25 Conditions for Receiving Credit for Military Service 27 Waiver of Military Retirement Pay 27 Conditions for Receiving Credit for Post-1956 Military Service 27 Receipt of Military Retired Pay 28 Post-1956 Military Service of Employees Hired After Sept. 30, 1982 29 Post-1956 Military Service of Employees Hired Before Oct. 1, 1982 29 Amount of Service Credited 30 4
Concurrent Military and Civilian Service Military Furlough 30 Military Service Creditable Under FERS 31 Service Credit Payments for Post-1956 Military Service CSRS 31 Who Can Make a Military Service Deposit? 31 Procedure for Making the Military Deposit 32 Planning Tip 32 Paying the Deposit 32 Computing the Amount of Creditable Military Service 33 Determining the Amount of Basic Pay 33 Computing the Military Deposit CSRS 33 General Rules for Computing the Interest Due 34 Computing the IAD 34 Computation of Composite Interest Rate for Employees 36 First Employed Under CSRS on or After Oct. 1, 1983 Establishing the Deposit Account 37 Completed Payments 38 Planning Tip 38 FERS-Covered Employees and Military Deposits 38 Military Service Subject to FERS Military Service Deposits 38 Who Can Make a Military Service Deposit? 39 Computing the Interest Due 40 Refund of Military Deposit 40 Contacts for Documentation of Actual Military Earnings 41 Chapter 5 Five-Year Period Before Retirement 43 Continuing Health Benefits Enrollment Into Retirement 43 Continuing Life Insurance Coverage Into Retirement 43 Considerations for Long-Term Care Insurance 44 Verifying Civilian and Military Service 45 Deposits for Civilian and/or Military Service 45 Documentation of Social Security Coverage 45 5
Considerations for the Thrift Savings Plan (TSP) 45 Contributing to Roth IRAs 45 Estate Planning Considerations 46 Chapter 6 One-Year Period Before Retirement 46 Completeness/Accuracy of Health and Life Insurance Records 48 Confirming Your Eligibility to Retire 48 Reviewing Survivor Benefit Considerations 49 FERS Employees Who Elect Immediate Retirement Under MRA + 10 Retirement 49 CSRS Voluntary Contribution Program (VCP) 50 Annuity Estimates 50 Planning Tip 51 Cost-of-Living Adjustments (COLAs) 51 TSP Withdrawal Options 52 Effect of Social Security Benefits on CSRS Offset Employees 52 Lump-Sum Payment of Annual Leave 52 Federal Income Taxes 52 State Income Tax Withholdings from Annuity Checks 53 Office of Workers Compensation Payment (OWCP) Benefits 53 Six-Month Period Before Retirement 53 Two-Month Period Before Retirement 54 Retirement Application Process and OPM Responsibilities 55 OPM Processing of Applications 57 Chapter 7 Insurance Issues Facing Federal Retirees 58 FEHB Coverage After Retirement 58 Contacting FEHB Plans 60 Federal Dental and Vision Insurance Program 64 Life Insurance During Retirement Through FEGLI 68 Federal Long-Term Care Insurance Program 69 6
Chapter 8 Cost-of-Living Adjustments 77 CSRS 77 Proration of the First CSRS or CSRS Offset COLA 79 Survivor Annuities Spouse, Former Spouse, Insurable Interest 80 Survivor Annuities Children 80 Miscellaneous Provisions for CSRS Annuitants 80 FERS 80 Proration of First FERS COLA 81 Transfer Employees with a CSRS Component 81 Survivor Annuities Spouse, Former Spouse and Insurable Interest 82 FERS Disability Annuitants 82 Re-employed FERS Annuitants 82 Chapter 9 The Thrift Savings Plan After Retirement 83 General Withdrawal Rights and Procedures 83 Withdrawal Options 83 Monthly Annuity Amounts 85 Spousal Rights 85 Withdrawal Requests 86 Transferring Your TSP Account 87 Taxation of Withdrawals 88 Reporting Changes in Personal Information 90 Leaving Your Money in the TSP 90 TSP, Beneficiaries and Death Benefits 91 Required Minimum Distributions 92 What Happens During Your First Distribution Calendar Year 94 What Happens During Your Second Distribution Calendar Year 94 What Happens During Third and Subsequent Years 96 TSP Materials and Contacts 97 Chapter 10 Federal Annuitants and Social Security 100 Coverage of Federal Employees 101 7
Earning Social Security Credits 102 Paying Taxes and Reporting Earnings 102 Monthly Benefit Payments 103 Computation of Social Security Benefits 103 Pros and Cons of Taking Social Security Retirement Benefits Earlier Than One s FRA 106 Benefit Estimates 108 Social Security Survivor Benefits 108 Dependent Benefits 110 The Earnings Test 111 Windfall Reduction Benefit Computation 112 Government Pension Offset (GPO) for Spousal Benefit 116 One-Time Death Benefit Payment 116 Applying for Social Security Retirement Benefits 117 When Benefit Payments Start 117 Contacting Social Security 118 Chapter 11 Federal Annuitants and Medicare 119 Health Insurance Benefit Changes After Retirement 119 Medicare 119 Medicare Enrollment Issues 122 Medigap Enrollment Issues 123 Which Pays First? 123 FEHB Enrollment Issues 123 Medicare Managed Care Plan Issues 124 Chapter 12 - Re-employment of Annuitants 125 General Rules Governing the Re-employment of Annuitants 125 Effect of Re-employment on a CSRS Annuity 125 Effect on FERS Annuity 127 Re-employment Under Broad-Based Authorities 127 Agency-Based Exceptions 129 Other Exceptions 131 8
Leave Accrual 131 Supplemental and Redetermined Annuities 131 Special Considerations 132 Disability Retirees 133 Health Insurance 134 Life Insurance 134 Long-Term Care Insurance 135 Dental and Vision Insurance 135 Flexible Spending Accounts 135 Thrift Savings Plan 136 Buyouts 136 Employment in the Private Sector 136 Chapter 13 - Phased Retirement 137 Appendix 139 Checklist for Employees Preparing to Retire 140 One Year or More Before Retirement 140 The 10 Smartest Things You Can Do As You Approach Retirement 144 Address for General Inquiries 145 Addresses for Specialized Retirement Functions 145 CSRS and CSRS Offset Employees: Annuity Estimates You May Need 147 FERS Employees: Annuity Estimates You May Need 148 Information About Federal and State Income Tax Withholdings 149 9