Denis Rhoden
Asst't to Director of Retirees
Outlook May / June 2019

Deferred Annuity /Deferred Retirement

C.S.R.S. - Deferred Annuity
Who is eligible for deferred retirement?
Any separated employee who is age 62 and has completed at least 5 years of civilian service providing the employee left retirement contributions in the Civil Service Retirement Fund.

How do I apply for my deferred CSRS annuity?
60 days prior to your 62nd birthday--write or call the office of Personnel Management Retirement Operations Center, Boyers, PA 16017 (888) 767-6738. OPM will send the application for deferred annuity.

Is an employee eligible for deferred annuity regardless of the reason for separation?
Yes. Providing he/she leaves the retirement contributions in the Civil Service Retirement Fund and not convicted of certain National Security offenses.

If I die before attaining age 62, or after age 62 but before applying for annuity, will my survivor(s) receive survivor benefits?
The only benefit payable will be your lump-sum credit in the retirement fund; monthly survivor annuity will not be payable.

F.E.R.S. – Deferred Retirement
Can employees who receive refunds of their contributions to FERS still collect deferred retirement benefits based on the Postal Service’s contributions toward their FERS retirement benefits?
No. Deferred benefits can only be collected if employees keep their career FERS contributions in the Civil Service Retirement Fund.

Are annuity benefits reduced in any way if an employee elects deferred retirement?
No, provided the employee does not submit an application for early retirement before becoming eligible to receive deferred benefits.

Who can collect a deceased employee’s survivor benefits?
FERS survivor benefits may be payable to a surviving spouse or former spouse.
In addition, natural and adopted children, as well as stepchildren who lived with the employee in a “regular parent-child relationship” prior to the death of the employee, may be eligible to receive FERS survivor benefits.

What eligibility requirements must a surviving spouse meet to qualify for FERS survivor benefits?
Widow/widowers must have been married to the deceased employee for at least 9 months immediately prior to the employee’s death or, if married less than nine months, must be the parent of a child of the deceased employee. However, if the death resulted from an accident, these requirements are waived.

Outlook March / April 2019
The FERS Annuity Supplement Benefit
What is the FERS Annuity Supplement?
FERS Annuity benefits are designed to supplement Social Security retirement benefits. However, FERS annuitants are not eligible to receive Social Security benefits until they reach age 62. In order to compensate annuitants who are less than 62 years old for their inability to collect Social Security benefits, the FERS Basic Benefit Plan provides a temporary annuity supplement to FERS employees who retire with unreduced annuity benefits. Deferred, disability and early MRA + 10 retirees are not eligible for the supplement.

The FERS annuity supplement is designed to approximate the monthly retirement benefit employees will receive from Social Security at age 62 for their years of service under FERS. The annuity supplement, which is subject to the Social Security earnings test, is payable until age 62, at which time Social Security retirement benefits may begin.

Who is eligible for the FERS annuity supplement?
Employees who retire voluntarily under FERS on an immediate (not deferred) annuity which is not reduced for age (as is an MRA +10 retirement). FERS employees may also be eligible for supplemental annuity once they reach their minimum retirement age (MRA) if they retired involuntarily or voluntarily because of a major reorganization or reduction in force.

Those retiring on disability, deferred retirement or an immediate MRA + 10 benefit are not eligible for the supplement

How is the amount of the FERS annuity supplement calculated?
The supplement is computed as if the retiring employee were age 62 and fully insured for a Social Security benefit when the supplement begins. By law, the U.S. Office of Personnel Management (OPM) first estimates what the employee’s full career (40 years) Social Security benefit would be. Then OPM calculates the amount of his or her civilian service under FERS (which does not include military time, even if deposit was made) and reduces the estimated full career Social Security benefit accordingly. For example, if the employee’s estimated full career Social Security benefit would be $1,000 and he or she worked 30 years under FERS, OPM would divide 30 by 40 (.75) and multiply ($1,000 x .75 = $750). The result would be the retiring employee’s special retirement supplement, prior to any reductions.



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