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Retirement FAQs Post-Retirement

Benefit Adjustments

  • If you retired before December 9, 1980, your Basic life insurance will begin to reduce by 2 percent of the face value each month beginning with the second month after your 65th birthday or your retirement date, whichever is later. This reduction continues until your Basic life insurance reaches 25 percent of the face value. This coverage is free. If you retired on or after December 9, 1980, and before January 1, 1990, you elected one of the following reduction schedules for your Basic life insurance:
    • 75 percent reduction - If you elected this reduction schedule, your Basic life insurance will begin to reduce by 2 percent of the face value each month beginning with the second month after your 65th birthday or your retirement date, whichever is later. This reduction continues until your Basic life insurance reaches 25 percent of the face value. This coverage is free.
    • 50 percent reduction - If you elected this reduction schedule, your Basic life insurance will begin to reduce by 1 percent of the face value each month beginning with the second month after your 65th birthday or your retirement date, whichever is later. This reduction continues until your Basic life insurance reaches 50 percent of the face value. We withhold premiums for this coverage from your annuity beginning at retirement and continuing for life.
    • No Reduction - If you elected this reduction schedule, the full amount of your Basic life insurance remains in force after you reach age 65. We withhold premiums for this additional coverage from your annuity beginning at retirement and continuing for life.
    If you retire after December 31, 1989, you must elect one of the three reduction schedules described above when you retire. Regardless of which reduction schedule you elect, if you separate before age 65, until you are 65 you must also pay the same premium as employees for the Basic life insurance you continue into retirement. The amount of Option A - Standard insurance (formerly known as "Optional insurance") is $10,000 at retirement. If you retired before October 30, 1998, your Option A insurance may have been higher than $10,000. If you have this coverage, it will begin to reduce by 2 percent per month or $200, beginning the second month after your 65th birthday or your retirement date, whichever is later, until it reaches 25 percent of the face value or $2,500. We will withhold premiums for Option A insurance from your annuity through the end of the month in which you are 65, unless you elect to cancel this coverage. All annuitants with Option B - Additional insurance as of April 24, 1999, or later, are eligible to make an Option B reduction election. Those who are 65 or older at retirement will hear from us shortly after retirement. We will contact annuitants who retired before age 65 shortly before their 65th birthday. At that time, the annuitant may elect either Full Reduction or No Reduction for each separate multiple of Option B. For example, a person with five multiples may elect No Reduction on two multiples, while the three remaining multiples reduce fully. If you elect Full Reduction, effective the first day of the second month after your 65th birthday or your retirement date, whichever is later, your Option B full-reduction multiples will reduce by 2 percent of the face value per month for 50 months, at which time this coverage will end. We will withhold premiums for this coverage from your annuity through the month in which you reach age 65. If you elect to continue some or all of your Option B multiples with No Reduction, when you are 65 or at retirement, whichever is later, we will adjust the withholding for your Option B coverage to reflect the number of multiples you decided to retain at No Reduction. Any other multiples will start to reduce as described above. All annuitants who have Option C - Family insurance, and whose annuity commencing dates are April 24, 1999, or later, are eligible to make an Option C reduction election. Those who are 65 or older at retirement will hear from us shortly after retirement. We will contact annuitants who retired before age 65 shortly before their 65th birthday. At that time, the annuitant may elect either Full Reduction or No Reduction for each separate multiple of Option C. For example, a person with five multiples may elect No Reduction on two multiples, while the three remaining multiples reduce fully. If you elect Full Reduction, or if you separated for retirement before April 24, 1999, effective the first day of the second month after you reach age 65 or your retirement date, whichever is later, your Option C full-reduction multiples will reduce by 2 percent of the face value per month for 50 months, at which time this coverage will end. We will withhold premiums for this coverage from your annuity through the month in which you reach age 65. If you elect to continue some or all of your Option C multiples with No Reduction we will adjust the withholding for your Option C coverage to reflect the number of multiples you decided to retain at No Reduction. Any other multiples will start to reduce as described above. For more complete information about life insurance coverage as an annuitant, please check the life insurance pamphlet, Information for Retirees and Their Families: Federal Employees Group Life Insurance, RI 76-12.
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  • Generally, if you are receiving a regular retirement, it will continue and your salary will be equivalently reduced. But, if you retired for disability or because your job was eliminated, your eligibility for the retirement benefit might end. You can discuss this with your prospective employer or provide us with detailed information about the position so that we can let you know if your benefit would stop. We need to know the title, grade, salary, tour of duty, and retirement coverage provided by the position you are considering. If your retirement benefit ends, your health benefits coverage as a retiree stops as well. You can enroll for health benefits where you are employed. Your life insurance as a retiree stops without a right to convert to an individual policy. Your eligibility for life insurance coverage will be the same as any other new employee.
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  • If at age 62 you are eligible for Social Security, we will recompute your retirement benefit to "offset" any part of your Social Security benefit that is based on your years of Federal service under the offset plan.
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  • If you are a federal retiree, contact OPM’s Retirement Office at 1-888-767-6738 or retire@opm.gov to check the status of your request.  The phone lines are open from 7:30 am to 7:45 pm (Eastern Standard Time). It is a busy phone number so we encourage you to call early in the morning or after 5:00 pm when the phone lines are less busy.
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  • If you were under 62 when your disability benefit began, and were not eligible for a voluntary immediate benefit, your benefit will be recomputed after you have been retired for 12 months. The recomputed annuity will be 40 percent of your high-3 average salary minus 60 percent of your monthly Social Security benefit, or your earned benefit, whichever is higher. At age 62, your benefit is recomputed as though you had continued working until age 62. (Your average salary is increased by all FERS Cost-of-Living Adjustments paid while you were disabled.)
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  • The “Making Work Pay” tax credit expired December 31, 2010. As a result, you may see an increase in the amount of Federal income tax being withheld from your monthly annuity payments. The tax withholding tables published by the Internal Revenue Service (IRS) were adjusted to provide for the correct withholding amounts without this credit. The tax rates did not change; only the tax withholding tables changed. For more information concerning the 2011 Federal tax withholding tables go to IRS Notice 1036, TABLE 4—MONTHLY Payroll Period. For other questions on Federal taxes, go to www.irs.gov.
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  • Send your request by e-mail to screceipts@opm.gov and a response will be returned by e-mail.  Be sure to include your name, date of birth and CSD Claim Number.
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  • Yes. If you are under age 60, your benefit will stop if:
    1. you are found to be medically recovered from your disabling condition;
    2. in any calendar year your income from wages and self-employment is at least 80 percent of the current rate of basic pay from the position you retired from (This is also known as a restoration to earning capacity.); or
    3. you are reemployed in the Federal service in a position equivalent to what you held at retirement. (This is called administratively recovered.)
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  • Yes. If your disability benefit stopped because you were found recovered either medically or administratively, your benefit can resume only if the disability recurs and you do not exceed the 80 percent earnings limitation. If your disability benefit stopped merely because you exceeded the earnings limitation, your benefit can resume effective the first of the year after you no longer exceed the 80 percent earnings limit.
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  • When you become eligible for Social Security, your military service after 1956 will be used in the computation of your Social Security. Unless you paid a deposit, prior to retirement, for your military service after 1956, it will no longer count toward your retirement benefit. However, if you did pay the deposit, no adjustment to your retirement benefit is made at age 62.
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  • Yes. Cost-of-Living Adjustments are effective each December first. The adjustment appears in your January payment on the first business day of the month, which is when your benefit for December is paid. Federal Employees Retirement System (FERS) and FERS Special Cost-of-Living Adjustments are not provided until age 62, except for disability, survivor benefits, and other special provision retirements. Also, under FERS, if you have a CSRS component, the component is subject to the CSRS COLA. Read about Cost-of-Living Adjustments for those who receive benefits under the Civil Service Retirement System, Organization and Disability Retirement System (ORDS), the Federal Employees Retirement System (FERS), or FERS Special.
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  • Information on the Federal Erroneous Retirement Coverage Correction Act can be found on OPM’s web site at www.opm.gov/retire/pre/fercca/index.asp.
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  • Please report it here: https://apps.opm.gov/retire/payment/missing_pay.cfm.  If you are unable to use the website, you can report it by contacting OPM’s Retirement Office at 1-888-767-6738 or retire@opm.gov.  The phone lines are open from 7:30 am to 7:45 pm (Eastern Standard Time). It is a busy phone number so we encourage you to call early in the morning or after 5:00 pm when the phone lines are less busy.
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  • The U.S. Department of Labor calculates the change in the Consumer Price Index (CPI) for urban wage earners and clerical workers from the third quarter average of the previous year to the third quarter average for the current year. For Civil Service Retirement System (CSRS) or Organization and Disability Retirement System (ORDS) benefits, the increase percentage is applied to your monthly benefit amount before any deductions, and is rounded down to the next whole dollar. For Federal Employees Retirement System (FERS) or FERS Special benefits, if the increase in the CPI is 2 percent or less, the Cost-of-Living Adjustment is equal to the CPI increase. If the CPI increase is more than 2 percent but no more than 3 percent, the Cost-of-Living Adjustment is 2 percent. If the CPI increase is more than 3 percent, the adjustment is 1 percent less than the CPI increase. The new amount is rounded down to the next whole dollar.
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  • Contact OPM’s Retirement Office at 1-888-767-6738 or retire@opm.gov.  The phone lines are open from 7:30 am to 7:45 pm (Eastern Standard Time). It is a busy phone number so we encourage you to call early in the morning or after 5:00 pm when the phone lines are less busy.
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Total Count: 17, Number of Pages: 2, Page: 1
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