As we approach the New Year, we want to thank you. We greatly appreciate the opportunity to assist federal employees across our nation every day.
We wish you a wonderful New Year filled with abundance, joy and treasured moments. May 2012 be your best year yet!
Be always at war with your vices, at peace with your neighbors, and let each New Year find you a better man. ~Benjamin Franklin
We are proud to anounce and acknowledge the recent designations recieved by members of our team. Bo Harris and Grant Ostrander are now Chartered Federal Employee Benefit Consultants (ChFEBC).
A ChFEBC is a prestigious designation for Financial Advisors, CPAs, Attorneys, and certain employees of the Federal Government, who have successfully completed an intensive training course and passed a rigorous examination covering all federal employee benefits.
They are required to stay up-to-date on the ever changing Federal Government Benefits Programs. They have extensive knowledge about FERS, CSRS, Special Provisions (LEO, FF, ATC, CBPO).
So if you have questions about your OWCP, OPM, TSP, FEGLI, Social Security, or other aspects of your federal retirement benefits, we can help! Call us today for a free consultation to discuss the details of your specific situation and options.
This Thanksgiving we remember what we are thankful for; the opportunity to work with and for federal employees. From everyone at here at Harris Federal, we wish you and yours a very special and happy Thanksgiving.
As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them.
~John Fitzgerald Kennedy
In July of this year, our Intake and Disability Director, Grant Ostrander went back to Nicaragua. You may remember that last year Grant and Bo Harris both travelled to Managua and Ometepe, Nicaragua to serve local communities and work at an orphanage for 10 days.
Due to an expanding family, Bo could not make it this year. Grant instead took his wife and their 18 month old daughter, Cali, with him.
They spent the entire 10 days on the volcanic island of Ometepe in the middle of Lake Nicaragua working at the orphanage, Cicrin. Grant spent most of his time continuing his work on an erosion project and drainage trench, mixing and pouring concrete for walls, as well as laying block on a building on the property. 
His wife, Kendall, spent time working with rebar for the new building, painting a mural in the local schoolhouse, helped teach some of the young women how to sew, and playing with the orphan children!
They enjoyed their time there and anxiously look forward to going back as soon and often as possible. Bringing their daughter with them allowed them to become close with many of the children. Most of them had never seen a blond-hared, blue-eyed little girl before!
From Yesterday…
While that may seem like an easy thing to accomplish, it can be very difficult to specifically meet that burden along with the other requirements regarding attempts to accommodate and adequate medical evidence can be very difficult.
This is the general FERS retirement computation:
If the annuitant is under the age of 62 at separation, or over the age of 62 but with less than 20 years of credible service, the annuitant is entitled to 1% of their High-3 per credible year of service. If the new annuitant is over 62 and has more than 20 years of credible service they receive 1.1% per credible year.
Special provisions employees are entitled to 1.7% of their High-3 per credible year of service up to 20 years and 1% for every year above 20 years.
Remember, this information is meant to be helpful, but you should never make any major decisions about your retirement or employment benefits without having a professional evaluate your particular situation. Come back tomorrow for more about FERS disability retirement…
Continued from Part 9…
The Federal Employees Retirement System is the newer of the two retirement systems. You must only have 18 months of credible service in order to be eligible to apply for disability benefits. Remember, all career federal employees are eligible after this time period, it does not apply to temporary or casual employees.
FERS employees are eligible for Social Security benefits in addition to their pension. Many FERS employees depend upon a thrift savings plan match provided by their employing agency.
The same basic qualifications apply to FERS as to CSRS. The applicant must be able to prove that they can no longer complete their job duties in a fully satisfactory way. They must prove that a medical condition is causing this deficiency and is expected to last for at least the next 12 months.
More tomorrow…
Continued from Part 8…
All disability retirement annuitants are eligible to earn up to 80% of their positions current salary in some other line of employment outside the federal government. As long as it is within their doctor’s current physical restrictions, they can get a job doing whatever they choose.
Remember Civil Service Retirement System employees are not eligible to draw Social Security benefits. The only exception is the Civil Service Offset employees. This was a very few number of hires that occurred right as the government was transitioning between the two retirement systems.
Civil Service Offset employees paid Social Security taxes and are therefore eligible for Social Security benefits, however, their retirement contributions and disbursements fall into the CSRS rules and regulations.
FERS information comes next…
Continued from Part 7…
CSRS example 3. This ATF special agent employee has eight years of military service (for which he paid his retainer) and 27 years of service in his current agency. He is 54 years old with a High-3 of $119,000. Because he purchased his military time, it will count towards a civilian retirement giving him a total of 35 years of service. As a “special provisions” employee, he will earn 2.5% per year for the first 20 years and 2% per year for every year after. This employee’s total percentage will be 80% of its High-3, totaling $95,200 per year.
Even though he was under the age of 55, because it is a disability retirement, there would be no reduction in his annuity.
Remember through all these examples you should still consult other federal attorney who has experience dealing with federal disability retirement benefits. None of this is considered legal and vice simply information that may help you while making your decisions about what benefits you may be eligible for.
To be continued…
Continued from Part 6…
CSRS example 2. This IRS employee has 27 years of service and his 52 years old with a High-3 of $67,000. This employee would also receive 1.5% of the High-3 per year for the first five years of service totaling 7.5%. They would also receive the 1.75% per year for the next five years totaling 8.75%. In addition they have earned 2% per year for the additional 17 years after completing their first 10 years of service totaling 34%.
7.5% +8.75% +34% = 50.25% of the High-3 for a gross yearly benefit $33,667.50
However, if it is not a disability retirement, they will have their annuity reduced by 1/6 of 1% per month before the age of 55. Being 52, this annuitant would have their retirement reduced by 6%, or. However, if this is a disability retirement, they would suffer no reduction.
To be continued…
Continued from Part 5…
This is the general CSRS retirement computation:
During the first five years of service you earn 1.5% of your High-3 salary for each year of service. During the second five years of service you earned 1.75% of your High-3 salary for each year. For every year of service over 10 years, you earn 2% of your High-3 average.
Let’s take a look at some examples of a few CSRS employees’ retirement calculations.
CSRS example 1. This postal employee has 30 years of federal service and is 57 years old with a High-3 of $54,000. This employee would receive 1.5% of the High-3 per year for the first five years of credible service totaling 7.5%. They would also receive 1.75% per year for the next five years of credible service totaling 8.75%. Each additional year, totaling 20 in this instance, gives 2% credit. That total would be 40%.
7.5% +8.75% +40% = 56.25% of the High-3 for a gross yearly benefit $30,375.00
That calculation is the same whether the applicant filed for disability retirement or simply filed for immediate retirement. Because they were over the age of 55 and had more than 30 years of credit service, the disability calculation is not more beneficial. This is a rare occurrence for most federal employees, but on occasion it makes more sense to simply retire.
To be continued…
Our articles regarding federal employees are offered as a public resource. They do not create legal obligations and are not to be accepted as legal advice for your particular situation. They are not a substitute for the U.S. Code, Federal Register, and Code of Federal Regulations as the official sources of applicable law.
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