DODDSEurope CSRS Retirement Briefing

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DODDS-EuropeCSRSRetirement Briefing

• Civil Service
• Retirement System (CSRS)

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Who is coveredby 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

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Types of Retirement Under 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 5530
• 6020
• 62..5
• Early Out/VERA 50.20
• ANY25
• Discontinued Service 50.20
• ANY25
• Disability ANY. 5
• Deferred 62.. 5

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Creditable Civilian ServiceCSRS

• 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

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• REDUCTIONS FOR CSRS
• Un-deposited post 1956 military time
• Temporary CSRS time
• Failure to make a redeposit of refunded
  retirement contributions
• Under age 55

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• 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

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• 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
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CSRS Deposit for Post 1956 Military Service
Person First Employed under CSRS Before 10/1/1982
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Civilian Service DepositCSRS

• 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)

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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

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Deposit Choices For CSRS
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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).

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• 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

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• 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.

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Computingyour CSRS Annuity
General Formula

• Three Step Formula
• 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)

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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

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• 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

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Survivor ElectionsCSRS

• Full Survivor Benefit
• 55 of Full Annuity
• Less than Full Survivor Annuity -
• Need consent of spouse
• No Survivor Benefit -
• Need consent of spouse

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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 Survivors Annuity 55 x 30,000
16,500
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Survivor BenefitsWill your spouse need continued
FEHB coverage in the event of your death?
No Survivor Benefit No Health InsuranceEven
the Minimum Survivor Benefit Election will permit
the current spouse to continue FEHB coverage.
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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
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FEHB Changes Permitted After Retirement

• Cancellation
• Self Family To Self Only (Anytime)
• Open Season
• Self Only To Self Family (Event)
• Change In Plan/option

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FEHB Cost After Retirement
Blue Cross and Blue Shield - Standard
Option, Self Family Bi-Weekly
164.58 Monthly 356.59
164.58 x 26 4279.08 356.59 x 12
4279.08
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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

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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

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Federal Employees Group Life Insurance (FEGLI)

• 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

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Continuation of FEGLIinto 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

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Basic InsurancePost-Retirement Coverage
Option Before Beginning
Age 65
Age 65
75 100 2 Per Month
Until Reduction
Reduction Reduces To 25 50
100 1 Per Month Until Reduction
Reduces To 50 No
100 100 Reduction
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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

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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

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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

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Thrift Savings Plan (TSP)

• DEFINITION
• A defined contribution retirement savings
  andinvestment plan for Federal employees
• TSP ACCOUNT
• Employee contributions
• Earnings

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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 monthlyinstallment
  s
• Purchase a life annuity through TSP
• Transfer, or rollover, to IRA or other eligible
  retirement plan

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Order of Precedence

• 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

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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.

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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

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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
  (SF-2806/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

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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

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Where to direct questions while your retirement
is being processed
Yes

• Have you received acknowledgement and a claim
  number from OPM yet?

• Direct questions to OPM. Always cite claim
  number when contacting OPM.

Yes
If Not

• Wait until you receive acknowledgement, then
  direct questions to OPM

• Ask DoDEA Personnel Office if your retirement
  packet has been sent to OPM.

Yes
If Not

• If your retirement packet has been sent to
  Payroll, the Personnel Office will contact DFAS
  on your behalf.

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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

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