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Return to Article: Should I Stay or Should I Go?

• 82326
  

  My question concerns your comment in this column: The amount of your retirement income will increase every day that you continue working. Is this true for FERS people who are working part-time? Won't every additional day decrease the % of retirement income they would have received if they had worked full-time? My situation is that I am considering retiring at the end of Feb 2010, I'll be 60 years old and have a little more than 20 years of service. The last 7 years have been half-time. (Even though it would increase my retirement income, I am not able to continue working until I am 62). Will my retirement check be reduced if I work until May 2010 instead of retiring in Feb 2010? Also, I have more than 400 hours of sick leave that will be added on as service time. Would this sick leave increase the proportion of part-time employment and thereby also decrease my retirement income?

  I appreciate your attention to my questions. Thank you!

  Linda

  Linda Haber Posted July 10, 2009 8:58 PM
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  I retired on 31 August 2008 and it was the best decision I ever made. I was apprehensive about doing it but after not having to drive 36 miles one way for over a year, I feel very good about it. I made sure that there was practically nothing in the way of outstanding credit card debts so management in that area is very easy.

  The money we got for selling our leave was used to upgrade the ac/heating and windows in our residence. A very good investment since the winter months have proven that decision was sound

  We have lunch with some former friends and that is fine. 2009 should find us in New England enjoying a vacation after we found a great pet sitter.

  Frank Kochniarczyk Posted January 9, 2009 7:14 AM
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  I am planning on moving to NC end of February 2009 as we will be closing on our house. Would it be wise to come back to finish March and April out as I will be 66 in April. By leaving two months early will there be a big deduction in my monthly SS check?

  Cheri Posted November 24, 2008 9:19 AM
• 57623
  

  I started collecting SS as a widow in 2005. I worked until June 15 and did not receive a SS check until October. They sent me a letter saying I may have gone over the 13000. guide line. I was told the last 1/4 SS income would not be affected by my previous 6 months income. Can you clear that up for me?

  Maryann Posted September 2, 2008 8:49 PM
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  I was born in 11/1943 and therefore am not eligible for full soc.sec. benefits until 66. I make 26K yr. for a 4 day week. Should I start collecting soc. now or wait? Or should I work a 3 day week - would I not be penalized then?

  Sandy Posted December 5, 2007 12:17 PM
• 37554
  

  Tammy, Thank you so much for all your wonderful advice through the years... I just took the initial NSPS training and am wondering do you plan on any articles in the near term on NSPS?

  Dan Piszcz Posted November 16, 2007 10:32 AM
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  I need to work 5 years to be vested at the university where I work to receive a small pension. That means I would be 67 years when I retire. I will be 65 in December.To get full Social Security I must work until I'm 65 and 10 months. I currently earn 58,000 per year. I visited the Social Security Office and they said if I start taking SS now, age 65, it would be 1440 versus 1561 if I wait until I'm 65 and 10 months. They said it's to my advantage to take the SS when I'm 65. I'm not sure of the impact of federal taxes. Does the federal govt consider SS checks as income? If so, that might put me in the tax bracket of $74,000 rather than the lower one. Should I wait until I retire to collect SS or start collecting it now? Thank you for any help you can provide

  Mary Ripic Posted October 17, 2007 11:04 AM
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  I started with the goverment on 11/23/1989. If I retire at the end of December, 2009 will I have attained my full 20 years of service.

  Caroline Gadson Posted September 20, 2007 11:57 AM
• 33223
  

  My comment is directed to the related article that appeared on Sept 14. My situation was similar to David's.I was a GS-14,at or near the top of the grade my last three years.A very important factor in the calculation is the survivor benefit.I took a 55% survivor benefit and reduced my annuity around 10% since I was 56 at the time.We decided to live on my annuity and bank as much of my contractor salary as allowed in a 401(k).This approach worked for the first six years after retirement.Both my TSP and 401(k) from the private sector are in good shape and we had IRAs from before the TSP came along.My work in the private sector before and after government service qualified both of us for a reduced SS benefit that we took at 64.I know this sounds like a lot but actually amounts to about 80% of my last government salary before drawing down the other investments. I thoroughly enjoy reading your articles on retirement planning.

  John Koper Posted September 17, 2007 3:53 PM
• 33047
  

  Hi! I retired from active military in 05/2006 and right away employed with the VA. I plan to work in VA for ten more years and retire. Will I be vested in the FERs or CSRS? I also contribute to the TSP. Please advise what % I can use ten years from now to compute my CSRS/FERS annuity. Also, I will start my Social Security benefits at age 65 or 67. Please advise on how to compute my retirement annuity combined. Thanks!

  Luis Posted September 16, 2007 2:14 PM
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  I have worked here for 25 yrs, working part time for the last 12 yrs(32 hrs a wk). I plan to retire in 2&1/2 yrs but don't want to work full time. I have reached my maximum in my salary range although I'm not getting the full amount because I work less hrs. I'd like to know if there will be a big difference if I work full time before I retire or if the difference will be just about $100 a month. I also have over 1300 + sick hrs under CSRS. Thanks.

  Arlie Tabo Posted May 10, 2007 6:17 PM
• 21865
  

  Hi Tip... the supplement is treated as income and subject to income tax, but it is not considered "earned income" and is not subject to Social Security taxes. Therefore, if you don't work past your retirement, there will be an effect on your Social Security benefit since you will have fewer years of wages. If you go back to work after you retire, you can increase your Social Security entitlement, but you may lose the supplement since it is subject to an earnings limitation. See my earlier articles I wrote on the FERS supplement.

  Tammy Flanagan Posted March 20, 2007 5:16 PM
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  Marianne, It is entirely possible for the high three to increase as I indicated in my article. Remember that you are trading 6 months of 2007 basic salary rate for 6 months of 2004 salary. This can make a surprisingly big difference in the retirement annuity. If you want a detailed explanation of this, send me an email at Tammy@nitpinc.com and give you the calculations.

  Tammy Flanagan Posted March 20, 2007 5:10 PM
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  Suppose Jules is covered by the Civil Service Retirement System and can retire on his 55th birthday on June 19, 2007. If he retires at the end of June, he will have 33 years and nine months of service. His high-three average salary will be computed from June 30, 2004, to June 30, 2007 (because we're assuming he was a GS 12-10 for that entire period), and will total $82,751. So his retirement benefit will be computed as:

  .6375 x $82,751 = $52,753/year or $4,396/month

  If Jules stays six months longer, his retirement will be computed on a high three of $84,381 and he will have about 34 years and three months of service. So his CSRS annuity will be: .6475 x $84,381 = $54,636/year or $4,553/month

  I missed something in the above portion of the article. How did Jules' high three increase by $1,630 because he worked 6 more months? I can see where it might increase by $600 or so, but not as much as $1,630.

  Marianne O'Meara Posted March 9, 2007 4:46 PM
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  I will not be here one day past eligibility. The things I see go on in the government is unbelievable. I've tried reason, I've tried complaints. Logic does not work. Management takes care of management, and the rest of us aren't worthy of their time, just a problem they have to tolerate to do their "bigger" stuff.

  It used to be "That's the way we always did it", now it's "We're too busy trying to eek that last ounce of blood out of you". Do more with less, Do more reporting, more charts justify our existence, (Management).

  Our government is a sad state of affairs.

  Civil Slave Posted February 26, 2007 9:33 AM
• 21357
  

  Dear Tammy,

  Just curious, does the FERS/SSN Supplement count as taxable income?

  Specifically, if a FERS employee retires at 55 or 56 (MRA and 30 years) and does not or can not work, does this supplement count in maintaining the SSN income levels so that they are not later penalized once they reach 62 and qualify for SSN, due to a reduced income for the past six or seven years?

  Tip off

  GovExec.com reader Posted February 26, 2007 8:04 AM
• 21351
  

  For Charles: Judy will receive a FERS Supplement to take the place of Social Security until she reaches age 62 (she was only 55 in the example). See the supplement reference in the article:

  .3375 x $82,751 = $27,928/year or $2,327/month
  + FERS Supplement based on her civilian FERS service = about 24/40 of her Social Security entitlement
  + Her TSP investment that can be withdrawn if necessary

  Tammy Flanagan Posted February 25, 2007 10:47 PM
• 21349
  

  It's not just about the money. Sure, we all need to feel secure in our retirement, but let's not forget that when we get into our sixties, the last third (generally) of our lives is here! Of course, many federal employees, like their private sector counterparts have financial obligations that preclude retirement, but many don't. Sounds like the old country tale of the donkey grinding the wheat. When he was replaced by a younger donkey, they found him out in the field still going in circles! Retirement isn't boring, work was, and every day is another opportunity to learn, help others, or just goof off. So for those who find retirement scary, fine, but realize that tempus fugit.

  GovExec.com reader Posted February 25, 2007 5:41 AM
• 21346
  

  Tammy,

  I retired Jan. 3, 2007, CSRS under the Special Law Enforcement Retirement (LEA)with a full annuity. I am 53 years old. I'm of the understanding that when I turn 55, I can withdraw money from my TSP account without the usual 10% penalty; Of course I understand that the distribution will be treated as ordinary income. Is this correct ? Second, if I roll over this same TSP money into a qualified IRS non contributing IRA rollover account at a major brokerage firm, if the above answer is yes, can I withdraw the same funds from that Rollover IRA acct. at age 55 without the 10% penalty too? Unfortunately my Agency didn't provide me with a Pre Retirement seminar, so all of my research was of the "self service" type.

  Thank you for a response.

  GovExec.com reader Posted February 24, 2007 1:40 PM
• 21339
  

  Talk about people in my circumstance. I worked under Social Security for years and qualified for a pension. But, our dear politicians gutted my small pension because I worked for the federal civil service. Fair??

  I am no high grade. I served in Vietnam, but I got shafted anyhow.

  GovExec.com reader Posted February 23, 2007 12:05 PM
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  In today's example with Judy, a FERS employee, will she receive Social Security Retirement Income in addition to the FERS annuity you described?

  Thank you.

  Charles Miller Posted February 23, 2007 8:33 AM