Transcript DODDS-Europe CSRS Retirement Briefing Civil Service Retirement System (CSRS) Who is covered by CSRS? Employees who were:  Hired before 01 January 1984  Previously covered by CSRS.

DODDS-Europe
CSRS
Retirement Briefing
Civil Service
Retirement System (CSRS)
Who is covered
by CSRS?
Employees who were:
 Hired before 01 January 1984
 Previously covered by CSRS and rehired
into a covered position after a break in
service of 365 days or less
CSRS
2
Types of Retirement Under
CSRS





CSRS
Voluntary/Optional Retirement
Voluntary Early Retirement
Discontinued Service Retirement
Deferred Retirement
Disability Retirement
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AGE AND SERVICE REQUIREMENTS FOR CSRS
RETIREMENT
 Optional/Voluntary
55………………30
60………………20
62………………..5
 Early Out/VERA
50……………….20
ANY…………………25
 Discontinued Service
50……………….20
ANY…………………25
 Disability
ANY………………….
 Deferred
62……………….. 5
CSRS
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4
Creditable Civilian Service
CSRS
 Full-time work schedule
Full-time credit for eligibility
 Part-time work schedule
Full-time credit for eligibility. (Service performed on/after 4/7/86 is prorated only for computation
purposes)
 Intermittent work schedule
Credit for only the days/hours actually worked
 While on Leave Without Pay (LWOP)
Full credit for up to 6 months in a calendar year
 While in receipt of Workers’ Compensation
Full credit is given for period of LWOP
Full credit is given if employee separates and subsequently returns to
Federal Service
REDUCTIONS FOR CSRS
•Un-deposited post 1956 military time
•Temporary CSRS time
•Failure to make a redeposit of refunded
retirement contributions
•Under age 55
UN-DEPOSITED POST 1956
MILITARY TIME
•In 1956 the uniform services fell under the Social Security
System
•Military pay after January 1, 1957 became subject to Social
Security System and a deposit of 7% of the gross military
pay is required
•If your deposit was made within the first 2 years of
employment, no interest on the 7% is required
•If deposit was not made within the first 2 years of
employment, a variable interest rate is set by the Dept. of the
Treasury
•Payment must be made to the Agency
CSRS MILITARY DEPOSIT
Military Service before 1 Jan 1957
Credit for retirement eligibility and annuity computation, if not receiving
military retirement annuity
Military
Service on or after 1 Jan 1957 (Post 56 Service)
Employee subject to CSRS on or after 1 Oct 82, no payment of deposit,
will not receive credit for eligibility and/or annuity computation
If, however, the employee was subject to CSRS before 1 Oct 82 then the
options are:
CSRS Deposit for Post 1956 Military Service
Person First Employed under CSRS Before 10/1/1982
If You Will Be:
Your Choices:
Effect on Your Annuity:
Eligible for Social
Security benefits at
the time of
Retirement
Paying deposit for post- 1956
military service before retiring
All military service will be counted in
computation of an annuity
Not paying deposit for post – 1956
military service before retiring
All military service will count toward
eligibility to retire but not for annuity
computation
Only pre-1957 military service will count
in computation of an annuity
Ineligible for Social
Security benefits at
the time of
retirement, but
become eligible after
annuity has begun (at
age 62)
CSRS
Paying deposit for post-1956
military service before retirement
All military service will be credited for
eligibility and computation when annuity
begins and after becoming eligible for
Social Security.
Not paying deposit for post-1956 military
service before retiring
All military service will be credited for
eligibility and computation when annuity
begin. At age 62 (when you become eligible
for Social Security) your annuity will be
recomputed to eliminate credit for post1956
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Civilian Service Deposit
CSRS
What is deposit service?
 Deposit service is the period of service during which retirement
contributions were not withheld from your salary (for example:
temporary service)
CSRS/FERS
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TEMPORARY (NON-DEDUCTED)
CSRS SERVICE
•If paid, time and computation credit is given
and there is no reduction in retirement benefit
•If not paid, time and computation credit is
given, but your retirement benefit (annuity) is
reduced by 10% of the unpaid deposit
Deposit Choices For CSRS
Non Deduction
Service
Non Deduction Service
Prior to 10/01/1982
Deposit Made
Credit for
Eligibility and
Annuity
Computation
Deposit Not Made
Credit for
Eligibility
And Annuity
Reduced by
10% of
Deposit Due
Non Deduction
Service On or
After 10/01/1982
Deposit Made
Credit for Eligibility
And Annuity
Computation
Deposit
Not
Made
CSRS
Credit for Eligibility
NO Credit for
Annuity
Computation
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REFUNDED RETIREMENT
CONTRIBUTIONS
Retirement Contributions:
•The money deducted from your salary to pay
for retirement
Refunded Retirement Contributions:
•Upon a break in service, you withdrew the
money (contributions).
FAILURE TO MAKE REDEPOSIT OF
REFUNDED RETIREMENT
CONTRIBUTIONS
If refunded service was before Oct. 1, 1990
•Full credit is granted for determining
eligibility
–Redeposit not required and you will receive
service credit but the monthly annuity will be
actuarially reduced by an amount equal to the
redeposit owed divided by an age reduction factor
based on life insurance expectancy tables if the
redeposit is not made
FAILURE TO MAKE REDEPOSIT OF
REFUNDED RETIREMENT
CONTRIBUTIONS
If refunded service was after Oct. 1, 1990
•Full credit is granted for determining
eligibility
–Redeposit not required and you will receive
service credit but the redeposit service is not
creditable for annuity if the redeposit is not paid.
Computing
your CSRS Annuity
General Formula

Three Step Formula:
a)
b)
c)

1.5% x average salary (Hi-3) x First 5 Years of Service plus
1.75% x average salary (Hi-3) x Next 5 Years of Service plus
2% x average salary (Hi-3) x All Years and Months of Service
over 10 (Includes Credit for Unused Sick Leave)
(a + b + c = Basic Annual Annuity)
Maximum Annuity :
80% x average salary (Hi-3) (at 41 Years 11 months of service,
although Sick Leave can increase annuity over 80%)
CSRS
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CSRS Computation (Example)
Age: 55
Average Hi-3 = $40,000
Total of Service = 32 years
1.5% x 40,000 x 5 = $3,000
1.75% x $40,000 x 5= $3,500
2% x $40,000 x 22 = $17,600
Total annual annuity = $24,000
SICK LEAVE USE FOR CSRS
(AND CSRS COMPONENTS)
Your sick leave balance may be used in the
calculation of your service time once you have
met basic eligibility
 The sick leave is only used in complete
months based on 2087 hour year
Extra days will be dropped
Survivor Elections
CSRS
Full Survivor Benefit
55% of Full Annuity
Less than Full Survivor Annuity Need consent of spouse
No Survivor Benefit Need consent of spouse
CSRS
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EXAMPLE:
Assume your basic annuity is: $30,000
2 ½% x $3,600 =
$90
10% x $26,400 =
$2,640
$2,730
Your annuity after reduction =$30,000- $2,730
=$27,270
Survivor’s Annuity: 55% x $30,000 = $16,500
Survivor Benefits
Will your spouse need continued FEHB
coverage in the event of your death?
No Survivor Benefit = No Health Insurance
Even the Minimum Survivor Benefit Election
will permit the current spouse to continue
FEHB coverage.
RETIREMENT & FEHB
Continuation into Retirement
Retires on an Immediate Annuity
Insured on Date of Retirement
Covered for the 5 years of Service
Immediately Preceding Retirement
OR since the first opportunity to Enroll
Coverage as a Family Member under FEHB or
CHAMPUS counts towards the 5 year requirement
FEHB Changes Permitted After
Retirement
 Cancellation
 Self & Family To Self Only (Anytime)
 Open Season
 Self Only To Self & Family (Event)
 Change In Plan/option
FEHB Cost
After Retirement
Blue Cross and Blue Shield
- Standard Option, Self & Family
Bi-Weekly
Monthly
=
=
$164.58
$356.59
$ 164.58 x 26 = $ 4279.08
$ 356.59 x 12 = $ 4279.08
FEHB & Medicare
MEDICARE Part A = Hospital Insurance
Has been paid for from wages (1.45%)
Federal employees eligible since 1983
MEDICARE Part B = Medical Insurance
2009 rate = $96.40 per month
Rate increases 10% each year not elected
FEHB & Medicare
EMPLOYEES CONTINUING TO WORK AFTER 65
 FEHB is the primary coverage and
MEDICARE provides secondary coverage
ANNUITANTS ELIGIBLE FOR MEDICARE
 MEDICARE is the primary coverage and
FEHB provides secondary coverage
Federal Employees’ Group Life Insurance
(FEGLI)
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
What FEGLI coverage do I currently have?
Do I have or need other life insurance?
Should I reduce my FEGLI options as I get older?
Are my beneficiary forms up-to-date?
Am I eligible to continue my FEGLI as an annuitant?
Basic Life
 Option A – Standard
 Option B - Additional
 Option C - Family
Continuation of FEGLI
into Retirement
Employee may continue Life Insurance into Retirement if you are:
 Eligible to Retire on Immediate Annuity
(Includes Retiring at MRA + 10, even if postponing receipt of annuity)
 Insured on date of Retirement
 Covered for the 5 years of service immediately preceding annuity
commencing date or since the first opportunity to enroll
Employee may continue Option A, B and C into Retirement if you are:
 Eligible to continue Basic
 Covered for the 5 years of service immediately preceding annuity
commencing date or
 Since the first opportunity to enroll
Basic Insurance
Post-Retirement Coverage
Option
Before
Age 65
Beginning
Age 65
75%
Reduction
100%
2% Per Month Until Reduction
Reduces To 25%
50%
Reduction
100%
1% Per Month Until
Reduces To 50%
No
Reduction
100%
100%
Option A - $10,000
Post-Retirement Coverage
 Premiums are withheld from annuity at the same
rate as an active employee
 After age 65, premiums are not withheld
 Insurance is reduced 2% per month until the
value is reduced to 25% or $2,500
Options B and C
Post-Retirement Coverage
FULL REDUCTION ELECTION:
 Before age 65 - Premiums are withheld from
annuity at the same rate as
active employees
 After age 65 - No cost. Insurance value
begins to reduce 2% per month
until reduced 100%
Options B and C
Post-Retirement Coverage
NO REDUCTION ELECTION:
 Premiums deducted from annuity at the same
rate as active employees
 No reduction to coverage when annuitant
reaches age 65
 Premiums continue after age 65
Thrift Savings Plan (TSP)
DEFINITION:
A defined contribution retirement savings and
investment plan for Federal employees
TSP ACCOUNT:
 Employee contributions
 Earnings
Options At Separation/Retirement
 Leave money in TSP account until age 70.5
 Receive TSP account in a single payment
 Receive TSP account in equal monthly
installments
 Purchase a life annuity through TSP
 Transfer, or rollover, to IRA or other eligible
retirement plan
Order of Precedence

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Court Order
Designated Beneficiary
Widow or widower
Children and/or descendants of any deceased children
Parents
Executor, Administrator of the Estate
Next of kin
Update your Beneficiary forms
due to:
 Marriage
 Acquisition of a child
 Divorce
 Death
 Change of Address
Flow of your Retirement Packet
 Employee submits a completed retirement
application packet to your servicing District
Human Resources Specialist.
 The DoDDS Europe Personnel Office reviews
the application packet, making sure the
paperwork is complete and filled out correctly.
The application packet is then forwarded to
the DoDEA Personnel Center.
Flow of your Retirement Packet
(Continued)

The DoDEA Personnel Center will do the following:
Certified Summary of Federal Service
Obtains verification of any undocumented service, if time permits
Reviews your application packet for completeness
Certifies Life Insurance coverage
Transfers Health Benefits Enrollment to OPM
Send your retirement SF-50 to your address on your application
packet
TSP withdrawal packet with all the forms and information you
need regarding your TSP options will be sent to your address
The DoDEA Personnel Center sends your retirement packet to
DFAS
Flow of your Retirement Packet
(continued)

DFAS will do the following:
Authorizes final paycheck
Authorizes lump sum payment for any unused
Annual Leave – not for Educator Leave
Prepares Individual Retirement Records (SF2806/SF-3100) for transfer to OPM
These records reflect your yearly retirement
contributions and other information
DFAS includes pay and leave records and forwards
the packet to OPM
Flow of your Retirement Packet
(continued)

When OPM receives your retirement packet they will:
Send you written notice which includes your CSA number
Authorizes interim payments
Obtains missing documentation
Determines your eligibility for annuity and continued FEHB and
FEGLI coverage
Computes amount of your annuity and sends election letters
Authorizes regular annuity payments
It will be 6-8 weeks before you receive your annuity but be
prepared to wait 12 weeks or longer
Your first annuity payments may only be partial payments until
OPM finishes processing your retirement
When processing is complete, OPM will send you a lump sum to
make up for the difference between the partial and full annuity
Sends a personalized booklet, “Your Federal Retirement Benefits,”
and other information
Where to direct questions while your
retirement is being processed
Yes
 Have you received
acknowledgement and a claimY
e
number from OPM yet?
If Not
 Ask DoDEA Personnel Office
if your retirement packet has
been sent to OPM.
If Not
 If your retirement packet has
been sent to Payroll, the
Personnel Office will contact
DFAS on your behalf.
 Direct questions to OPM.
Always cite claim number
when contacting OPM.
s
Yes
 Wait until you receive
acknowledgement, then direct
questions to OPM
Contacting OPM Online
www.servicesonline.opm.gov
You will need your CSA claim number and Personal
Identification Number (PIN)
 Start, change, or stop Federal and State income tax
withholdings
 Purchase savings bonds
 Obtain duplicate tax statements (1099Rs)
STEPS IN PLANNING YOUR
RETIREMENT
1. Determine whether you are eligible to retire.
2. Identify the factors that affect your annuity computation
3. Decide whether to make a deposit for civilian or military
service
4. Make a decision about survivor election
5. Make decisions regarding health benefits and life
insurance coverage
6. Identify the steps in the processing of your retirement
application
7. Identify factors affecting your eligibility for Social
Security benefits, the amount of those benefits, and how to
apply for them
8. Decide how to receive your Thrift Savings Plan proceeds
Internet Resources
Name of Website
WWW Address (URL)
The Office of Personnel Management (OPM) Home Page
Http://www.opm.gov
EBIS
Http://www.dodea.edu
Tax Calculator – Figures Tax Free Portion of Annuity
Payments
Http://apps.opm.gov/tax_calc
Withholding – To complete the amount of monthly Federal
income tax withholding from your Annuity
Http://apps.opm.gov/tax_calc
Military Deposit Interest Calculator (MILDEP 99)
Http://www.opm.gov/asd
OPM Electronic Forms
Http://www.opm.gov/forms
Social Security Administration Homepage
Http://www.ssa.gov
Thrift Savings Plan (TSP) Homepage
Http://www.tsp.gov
MEDICARE Homepage
Http://www.medicare.gov
Internal Revenue Service (IRS) Homepage
Http://www.irs.gov
Access America for Seniors
Http://www.seniors.gov
Defense Finance and Accounting Service
Http://www.dfas.mil/money/retired/index
.htm
CSRS/FERS Retirement Calculators
Http://www.finance.gsa.gov/csrs
FEGLI CALCULATOR
http://apps.opm.gov/calculator/