1. CSRS/FERSCSRS/FERS Retirement NALC Branch 79 Retirement NALC Branch 79

3. RETIREMENT RESOURCES, CONT. www.liteblue.usps.govwww.liteblue.usps.gov www.opm.govwww.opm.gov www.tsp.gov/www.tsp.gov/ www.ssa.gov/www.ssa.gov/ John Sweeney – 206-283-3079John Sweeney – 206-283-3079 1-877-477-3273 Options – Human Resources1-877-477-3273 Options – Human Resources www.liteblue.usps.govwww.liteblue.usps.gov www.opm.govwww.opm.gov www.tsp.gov/www.tsp.gov/ www.ssa.gov/www.ssa.gov/ John Sweeney – 206-283-3079John Sweeney – 206-283-3079 1-877-477-3273 Options – Human Resources1-877-477-3273 Options – Human Resources

4. OVERVIEW - FERS

5. FERS ELIGIBILITY TYPES OF RETIREMENT IMMEDIATEAGE YEARS OF SERVICE (FULL BENEFIT) MRA (55*)30 6020 625 MRA + 10 MRA (55*)10** DISABILITY Any18 Months DEFERRED 625

6. FERS ELIGIBILITY YEAR OF BIRTH MRA MRA BEFORE 1948 551965 56 + 2 MONTHS 1948 55+ 2 MONTHS1966 56 + 4 1949 55 + 4 MONTHS1967 56 + 6 1950 55 + 6 MONTHS1968 56 + 8 1951 55 + 8 MONTHS1969 56 + 10 1952 55 + 10 MONTHS 1970 OR LATER 57 1953-1964 56

7. Soc. Sec. Supplement - FERS Retires on an immediate retirement before age 62, receives supplement until age 62. Approximates monthly SS benefits you will receive at age 62. Computed as if employee is 62 under SS. Retires on an immediate retirement before age 62, receives supplement until age 62. Approximates monthly SS benefits you will receive at age 62. Computed as if employee is 62 under SS.

8. CSRS Eligibility OPTIONAL AGEYEARS 5530 6020 625

9. CSRS Eligibility Disability –Any age5 Years –Deferred5 Years Disability –Any age5 Years –Deferred5 Years

10. FERS ANNUITY COMPUTATIONS  BASIC COMPONENTS OF THE ANNUITY  High 3-years average salary, and  Length of creditable service  Basic Annual Benefit = 1% of High-3 average salary X years of creditable service  BASIC COMPONENTS OF THE ANNUITY  High 3-years average salary, and  Length of creditable service  Basic Annual Benefit = 1% of High-3 average salary X years of creditable service

11. ANNUITY COMPUTATIONS  HIGH-3 average pay is used in computing the employee’s annuity.  The “high-3 average pay” is the largest annual rate resulting from averaging an employee’s rates of basic pay in effect over any period of three consecutive years of credible civilian service, with each rate weighted by the length of time it was in effect.  HIGH-3 average pay is used in computing the employee’s annuity.  The “high-3 average pay” is the largest annual rate resulting from averaging an employee’s rates of basic pay in effect over any period of three consecutive years of credible civilian service, with each rate weighted by the length of time it was in effect.

12. CSRS Annuity Computations Basic Components –High 3 Year Salary Average –Length of Creditable Service Basic Components –High 3 Year Salary Average –Length of Creditable Service

13. General Formula 1.50% x 60,000 x 5= 4,500 Add 1.75% x 60,000 x 5= 5,250 2.00% x 60,000 x 20 = 24,000 Total = 33,750 1.50% x 60,000 x 5= 4,500 Add 1.75% x 60,000 x 5= 5,250 2.00% x 60,000 x 20 = 24,000 Total = 33,750

14. Short Cut Years of Service - 2 x 2 30 - 2 = 28 x 2 = 56% 60,000 x 56% = 33,600 Years of Service - 2 x 2 30 - 2 = 28 x 2 = 56% 60,000 x 56% = 33,600

15. High 3 Average The “High 3 Average Pay’ is the largest annual rate resulting from averaging an employee’s rates of basic pay in effect over any period of 3 consecutive years of creditable civilian service, with each rate weighted by the length of time it was in effect.

16. CSRS/FERS - Unused Sick Leave Unused sick leave is not included for determining eligibility. Unused Sick leave is added to length of service in computing the annuity benefit. Unused sick leave is credited only in immediate retirements. Based on a 2080 hour work year. Unused sick leave is not included for determining eligibility. Unused Sick leave is added to length of service in computing the annuity benefit. Unused sick leave is credited only in immediate retirements. Based on a 2080 hour work year.

17. CSRS/FERS Unused Sick Leave Example Actual Service –30 years, 4 months, 16 days Sick Leave at Retirement –4 months, 24 days 30 Years –4 months, 16 days –4 months, 24 days 30 Years –9 months, 10 days Total Credit 30 years, 9 months Actual Service –30 years, 4 months, 16 days Sick Leave at Retirement –4 months, 24 days 30 Years –4 months, 16 days –4 months, 24 days 30 Years –9 months, 10 days Total Credit 30 years, 9 months

18. MAXIMUM ANNUITY  FERS RETIREES:  There is no maximum annuity under FERS.  FERS RETIREES:  There is no maximum annuity under FERS.

19. Maximum Annuity - CSRS 80% of high 3 based on service. 41 years and 11 months of service earns maximum of 80%. Unused sick leave is credited in addition to the 80% maximum. Excess CSRS contributions are refunded to the annuitant. 80% of high 3 based on service. 41 years and 11 months of service earns maximum of 80%. Unused sick leave is credited in addition to the 80% maximum. Excess CSRS contributions are refunded to the annuitant.

20. CSRS Reductions in Basic Annuity Reduction for Age –Annuity is reduced 2% for each year retiree is under 55, 1/6 percent for each full month under 55 Reduction for Unpaid Deposit –Annuity is reduced by 10% of any unpaid deposit Reduction to Provide Survivor Benefits –2.5% of first $3,600 of survivor base plus 10% of remainder of survivor base Reduction for Age –Annuity is reduced 2% for each year retiree is under 55, 1/6 percent for each full month under 55 Reduction for Unpaid Deposit –Annuity is reduced by 10% of any unpaid deposit Reduction to Provide Survivor Benefits –2.5% of first $3,600 of survivor base plus 10% of remainder of survivor base

21. FERS - REDUCTIONS IN BASIC ANNUITY  Reduction for Age (MRA + 10)  Annuity is reduced 5% for each year retiree is under age 62; 5/12 percent for each full month under age 62.  Reduction to provide Survivor Benefit  FERS Survivor Reduction = 10% of survivor base  Reduction for Age (MRA + 10)  Annuity is reduced 5% for each year retiree is under age 62; 5/12 percent for each full month under age 62.  Reduction to provide Survivor Benefit  FERS Survivor Reduction = 10% of survivor base

22. LEAVE WITHOUT PAY  LEAVE WITHOUT PAY (LWOP) is fully creditable for retirement purposes for up to six (6) months per calendar year.

23. SURVIVOR ELECTIONS  Regular Survivor Benefits  Spouse  Former Spouse  Children’s Survivor Benefits  Children who are unmarried and  Under age 18;  Under age 22 if a full-time student  At any age if the child became disabled before age 18  Insurable Interest Survivor Benefits  Spouse  Former Spouse  Insurable Interest Survivor (Financially dependent)  Lump Sum Benefit  Remaining retirement contributions, if any  Regular Survivor Benefits  Spouse  Former Spouse  Children’s Survivor Benefits  Children who are unmarried and  Under age 18;  Under age 22 if a full-time student  At any age if the child became disabled before age 18  Insurable Interest Survivor Benefits  Spouse  Former Spouse  Insurable Interest Survivor (Financially dependent)  Lump Sum Benefit  Remaining retirement contributions, if any

24. Types of Survivor Elections Self only (no survivor benefits) Partially reduced annuity Fully reduced annuity –Must be married 9 months –Self only and partially reduced annuity must obtain spousal consent before a notary public. –Fully reduced survivor annuity spouse receives 55%. – CSRS –Fully reduced FERS annuity receives 50% Self only (no survivor benefits) Partially reduced annuity Fully reduced annuity –Must be married 9 months –Self only and partially reduced annuity must obtain spousal consent before a notary public. –Fully reduced survivor annuity spouse receives 55%. – CSRS –Fully reduced FERS annuity receives 50%

25. Social Security Must have 40 quarters. $1,130 per quarter or $4,520 per year (2012) Can begin benefit at age 62. Approx. 75% of full retirement age benefit. Full retirement age depends on year of birth. (age 66 born 1943-54) Must have 40 quarters. $1,130 per quarter or $4,520 per year (2012) Can begin benefit at age 62. Approx. 75% of full retirement age benefit. Full retirement age depends on year of birth. (age 66 born 1943-54)

26. Social Security Cont’d Military service after 1956 is creditable under SS. FERS hired after 12/31/83 is creditable under SS. Can get online statement at www.ssa.gov. Doesn’t reflect windfall elimination or Gov’t Offset. www.ssa.gov Military service after 1956 is creditable under SS. FERS hired after 12/31/83 is creditable under SS. Can get online statement at www.ssa.gov. Doesn’t reflect windfall elimination or Gov’t Offset. www.ssa.gov

27. Social Security Formula Average Indexed Monthly Earnings (AIME) is determined. Then Primary Insurance Amount (PIA) determined by: 90% of first $767 of AIME plus 32% of AIME in excess of $767 thru $4,624. Then 15% over $4,624 Average Indexed Monthly Earnings (AIME) is determined. Then Primary Insurance Amount (PIA) determined by: 90% of first $767 of AIME plus 32% of AIME in excess of $767 thru $4,624. Then 15% over $4,624

28. Windfall Elimination Social Security Benefits 40 quarters and –30 years of substantial earnings for full social security –Social security determines average indexed monthly earnings (AIME) –Windfall elimination can reduce first part of formula from 90% to 40% depending on years of substantial earnings.. 40 quarters and –30 years of substantial earnings for full social security –Social security determines average indexed monthly earnings (AIME) –Windfall elimination can reduce first part of formula from 90% to 40% depending on years of substantial earnings..

29. Soc. Sec. Survivor Benefits Deceased worker must be fully insured (40 quarters) $255 lump sum to spouse. Monthly survivor benefit goes to spouse 60 or older. Age 60 gets 71.5% of PIA. Spouse at full retirement age 66 (born 1945-52) gets100% of spouse’s PIA. Deceased worker must be fully insured (40 quarters) $255 lump sum to spouse. Monthly survivor benefit goes to spouse 60 or older. Age 60 gets 71.5% of PIA. Spouse at full retirement age 66 (born 1945-52) gets100% of spouse’s PIA.

30. SS Survivor Benefits Cont’d If surviving spouse has own SS benefits will receive larger of the two.

31. Government Pension Offset Receive CSRS pension - $900 Two thirds of pension will be deducted from social security benefit due from deceased wife’s benefit. Example –Wife deceased benefit $700 –Two thirds of pension $600 –Deceased wife’s social security benefit $100 –$700 - $600 = $100 Receive CSRS pension - $900 Two thirds of pension will be deducted from social security benefit due from deceased wife’s benefit. Example –Wife deceased benefit $700 –Two thirds of pension $600 –Deceased wife’s social security benefit $100 –$700 - $600 = $100

32. Medicare Part A is hospitalization. Paid from your salary. Mostly hospitalization. Part B premium adjusts annually. Covers doctors visits, medical supp;ies. Part C is supplemental. Part D is prescription coverage. Part A is hospitalization. Paid from your salary. Mostly hospitalization. Part B premium adjusts annually. Covers doctors visits, medical supp;ies. Part C is supplemental. Part D is prescription coverage.

33. Military Buyback Credit for post 56 military service First employed under CSRS before 10/1/82 Credit for post 56 military service First employed under CSRS before 10/1/82

34. Military Buyback continued Automatically get credit for military service in retirement annuity computation whether make deposit or not. Make the deposit before retiring - at age 62 then military service stays credited for retirement annuity regardless of social security entitlement. Deposit not made - no credit for military service if and when become eligible for social security at age 62 or date of retirement, whichever is later. Automatically get credit for military service in retirement annuity computation whether make deposit or not. Make the deposit before retiring - at age 62 then military service stays credited for retirement annuity regardless of social security entitlement. Deposit not made - no credit for military service if and when become eligible for social security at age 62 or date of retirement, whichever is later.

35. Military Buyback continued Deposit not made Not eligible for social security benefits at retirement - full credit is granted for post 56 military service in annuity computation. If later turn age 62 and becomes eligible for social security benefits, annuity will be recomputed eliminating credit for post 56 military service. Deposit not made Not eligible for social security benefits at retirement - full credit is granted for post 56 military service in annuity computation. If later turn age 62 and becomes eligible for social security benefits, annuity will be recomputed eliminating credit for post 56 military service.

36. Military Buyback: computation of deposit Post 56 deposit - 7% of base pay earned during military service. 2 year interest free grace period. After that, interest is accrued and compounded annually every October. Make deposit to USPS before retirement. Post 56 deposit - 7% of base pay earned during military service. 2 year interest free grace period. After that, interest is accrued and compounded annually every October. Make deposit to USPS before retirement.

37. Military Buyback: computation of deposit, continued Request base pay earnings from USPS along with form DD 214. USPS will calculate deposit due plus interest. Request base pay earnings from USPS along with form DD 214. USPS will calculate deposit due plus interest.

38. MILITARY BUYBACK - FERS  Computation of Deposit for Post-56 Military Service  Deposit  FERS - sum equal to 3% of the military basic pay he or she earned during the period of military service.  Interest  2-year interest-free grace period on deposits. After the 2-year period, interest is accrued and compounded annually - on your anniversary for FERS.  Computation of Deposit for Post-56 Military Service  Deposit  FERS - sum equal to 3% of the military basic pay he or she earned during the period of military service.  Interest  2-year interest-free grace period on deposits. After the 2-year period, interest is accrued and compounded annually - on your anniversary for FERS.

39. MILITARY BUYBACK - FERS  Computation of Deposit for Post-56 Military Service Cont. No credit unless make deposit. No credit unless make deposit.  Where to Make Deposits  Deposits for post-56 military service must be made to the employing office prior to retirement.  Deposits cannot be be made to OPM.  Computation of Deposit for Post-56 Military Service Cont. No credit unless make deposit. No credit unless make deposit.  Where to Make Deposits  Deposits for post-56 military service must be made to the employing office prior to retirement.  Deposits cannot be be made to OPM.

41. HEALTH INSURANCE  A retiring employee is eligible to continue FEHB coverage into retirement if he/she:  Retires on immediate annuity, and  Is insured on date of retirement, and  Was covered by FEHB under his/her own enrollment or as a family member under another Federal enrollment, for five (5) years of service immediately preceding retirement or since his/her first opportunity to enroll.  A retiring employee is eligible to continue FEHB coverage into retirement if he/she:  Retires on immediate annuity, and  Is insured on date of retirement, and  Was covered by FEHB under his/her own enrollment or as a family member under another Federal enrollment, for five (5) years of service immediately preceding retirement or since his/her first opportunity to enroll.

42. Health Benefits continued Cost - retirees are required to pay same premiums for FEHB as are other Federal employees. Premiums withheld on a monthly basis. Generally not permitted to enroll in FEHB after retirement. Survivor benefit must be elected for the spouse to be eligible for health insurance after retiree’s death. Cost - retirees are required to pay same premiums for FEHB as are other Federal employees. Premiums withheld on a monthly basis. Generally not permitted to enroll in FEHB after retirement. Survivor benefit must be elected for the spouse to be eligible for health insurance after retiree’s death.

43. LIFE INSURANCE  A retiring employee is eligible to continue FEGLI coverage into retirement if he/she:  Retires on immediate annuity, and  Is insured on date of retirement, and  Was covered by FEGLI under his/her own enrollment or as a family member under another Federal enrollment, for five (5) years of service immediately preceding retirement or since his/her first opportunity to enroll.  Does not convert to a private policy.  A retiring employee is eligible to continue FEGLI coverage into retirement if he/she:  Retires on immediate annuity, and  Is insured on date of retirement, and  Was covered by FEGLI under his/her own enrollment or as a family member under another Federal enrollment, for five (5) years of service immediately preceding retirement or since his/her first opportunity to enroll.  Does not convert to a private policy.

44. INSURANCE OPTIONS  Basic - Basic insurance amount (BIA) annual rate of basic pay rounded to next even $1,000 plus $2,000.  75% Reduction - 2% per month reduction beginning 2nd month after age 65 down to 25%  50% Reduction - same as 75% except reduces down to 50%  No reduction  Basic - Basic insurance amount (BIA) annual rate of basic pay rounded to next even $1,000 plus $2,000.  75% Reduction - 2% per month reduction beginning 2nd month after age 65 down to 25%  50% Reduction - same as 75% except reduces down to 50%  No reduction

45. OPTIONAL INSURANCE IN RETIREMENT  Standard - will reduce 2% each month until down to 25% starting 2nd month after 65th birthday  Additional  Full reduction - starts 2nd month after age 65 for 50 months  No reduction - pay full premiums  Family  Full reduction - starts 2nd month after age 65 for 50 months  No reduction - pay full premium  Standard - will reduce 2% each month until down to 25% starting 2nd month after 65th birthday  Additional  Full reduction - starts 2nd month after age 65 for 50 months  No reduction - pay full premiums  Family  Full reduction - starts 2nd month after age 65 for 50 months  No reduction - pay full premium

46. THRIFT SAVINGS PLAN  Employees who have participated in the Thrift Savings Plan during employment may elect one of the following payment options upon retirement:  Lump Sum - The retiree may elect to receive all monies in the fund in one lump sum payment.  Single Life Annuity - The retiree may elect to receive equal monthly payment for life.  Single Life Annuity Increasing Payment - The retiree may elect to receive monthly payments which increase at a set rate yearly.  Joint & Surviving Spouse Annuity Level Payment - The retiree may elect to receive equal monthly payment for life plus a monthly benefit payable to the surviving spouse in the event of the retiree’s death.  Employees who have participated in the Thrift Savings Plan during employment may elect one of the following payment options upon retirement:  Lump Sum - The retiree may elect to receive all monies in the fund in one lump sum payment.  Single Life Annuity - The retiree may elect to receive equal monthly payment for life.  Single Life Annuity Increasing Payment - The retiree may elect to receive monthly payments which increase at a set rate yearly.  Joint & Surviving Spouse Annuity Level Payment - The retiree may elect to receive equal monthly payment for life plus a monthly benefit payable to the surviving spouse in the event of the retiree’s death.

47. THRIFT SAVINGS PLAN  Joint & Surviving Spouse Annuity Increasing Payment - The retiree may elect to receive monthly payments which increase at a set rate yearly plus a monthly benefit payable to the surviving spouse in the event of the retiree’s death.  Joint & Other Survivor Annuity Level Payment - The retiree may elect to receive equal monthly payment for life plus a monthly benefit payable to a person with an insurable interest or to a former spouse.  Equal Installments - The retiree may elect to receive the total of his/her account in equal installments over a set period of time.  Transfer to IRA or Other Qualified Pension Plan.  Defer receipt of benefits until a later date. The retiree must begin to receive payments by April 1st after reaching age 70 1/2.  Joint & Surviving Spouse Annuity Increasing Payment - The retiree may elect to receive monthly payments which increase at a set rate yearly plus a monthly benefit payable to the surviving spouse in the event of the retiree’s death.  Joint & Other Survivor Annuity Level Payment - The retiree may elect to receive equal monthly payment for life plus a monthly benefit payable to a person with an insurable interest or to a former spouse.  Equal Installments - The retiree may elect to receive the total of his/her account in equal installments over a set period of time.  Transfer to IRA or Other Qualified Pension Plan.  Defer receipt of benefits until a later date. The retiree must begin to receive payments by April 1st after reaching age 70 1/2.

48. TSP OPTIONS  Leave money in TSP (Until 70 1/2)  Partial withdrawal - single payment - leave remainder using other 3 withdrawal options  Full withdrawals  Receive entire account in single payment  Receive entire account in series of monthly payments  Purchase a life annuity  Leave money in TSP (Until 70 1/2)  Partial withdrawal - single payment - leave remainder using other 3 withdrawal options  Full withdrawals  Receive entire account in single payment  Receive entire account in series of monthly payments  Purchase a life annuity

49. THRIFT SAVINGS PLAN  Visit the Thrift Savings website - this provides current information.  www.tsp.gov www.tsp.gov  For Calculators Menu  www.tsp.gov/calc/index.html www.tsp.gov/calc/index.html  Projecting Account Balances - this calculator allows you to estimate the growth of your TSP account.  Annuity Calculator - This calculator allows you to estimate what your account balance would provide in monthly annuity payments under a variety of TSP account options.  Retirement planning - This page links you to the Ballpark Estimate calculator, which allows you to estimate how much you will need to save each year to meet your retirement goals.  Visit the Thrift Savings website - this provides current information.  www.tsp.gov www.tsp.gov  For Calculators Menu  www.tsp.gov/calc/index.html www.tsp.gov/calc/index.html  Projecting Account Balances - this calculator allows you to estimate the growth of your TSP account.  Annuity Calculator - This calculator allows you to estimate what your account balance would provide in monthly annuity payments under a variety of TSP account options.  Retirement planning - This page links you to the Ballpark Estimate calculator, which allows you to estimate how much you will need to save each year to meet your retirement goals.

50. FERS ANNUITY COMMENCING DATES  Optional retirements commence on the first of the month following the month of separation.  You should plan your retirement for the last day of the month, or the last few days of a month, to avoid a gap in pay.  Optional retirements commence on the first of the month following the month of separation.  You should plan your retirement for the last day of the month, or the last few days of a month, to avoid a gap in pay.

51. TAX INFORMATION  Federal Income Tax will be withheld from your annuity at the rate for a Married Person with three (3) exemptions.  If you want something different, a W-4P Form is required.  State Income Tax - must be requested by the Employee - OPM will only take out deductions in dollar amounts.  Federal Income Tax will be withheld from your annuity at the rate for a Married Person with three (3) exemptions.  If you want something different, a W-4P Form is required.  State Income Tax - must be requested by the Employee - OPM will only take out deductions in dollar amounts.

52. TAX INFORMATION  Most of your benefits are taxable.  If your annuity starting date is after 11/18/96, you must use the Simplified Method to figure the taxable and tax-free parts.  Check out information provided on the following website:  http://www.opm.gov/retire/html/library/fers. asp  Use the calculator on “Tools” page to compute the tax- free portion of your annuity payment.  http://apps.opm.gov/tax_calc/index.cfm  Most of your benefits are taxable.  If your annuity starting date is after 11/18/96, you must use the Simplified Method to figure the taxable and tax-free parts.  Check out information provided on the following website:  http://www.opm.gov/retire/html/library/fers. asp  Use the calculator on “Tools” page to compute the tax- free portion of your annuity payment.  http://apps.opm.gov/tax_calc/index.cfm

53. DEDUCTIONSDEDUCTIONS  AUTOMATIC DEDUCTIONS  Health Insurance Premiums  Life Insurance Premiums  Federal Taxes  Survivor’s annuity  OTHER DEDUCTIONS  Allotments, Direct Deposits, Union Dues, etc.  Will stop at time of Retirement  AUTOMATIC DEDUCTIONS  Health Insurance Premiums  Life Insurance Premiums  Federal Taxes  Survivor’s annuity  OTHER DEDUCTIONS  Allotments, Direct Deposits, Union Dues, etc.  Will stop at time of Retirement

54. Miscellaneous - CSRS Day of month to retire –Last day of month –First 3 days of month Taxes withheld at married person with 3 exemptions rate Part of retirement annuity tax free Deductions –Survivor annuity –Federal taxes –Health insurance –Life insurance Day of month to retire –Last day of month –First 3 days of month Taxes withheld at married person with 3 exemptions rate Part of retirement annuity tax free Deductions –Survivor annuity –Federal taxes –Health insurance –Life insurance

55. PREPARING FOR RETIREMENT  Review your own records - Official Personnel Folder (OPF).  Verify that you have paid Military Buyback if applicable and DD 214 is in your OPF.  Verify if deposit or re-deposit is required for any service.  Review your survivor benefit options.  Verify that you are eligible to continue Health and Life Insurance coverage as a retiree.  Review your own records - Official Personnel Folder (OPF).  Verify that you have paid Military Buyback if applicable and DD 214 is in your OPF.  Verify if deposit or re-deposit is required for any service.  Review your survivor benefit options.  Verify that you are eligible to continue Health and Life Insurance coverage as a retiree.

56. PREPARING FOR RETIREMENT  Check any designations of beneficiaries you may have on file to be sure that they reflect on your current needs.  Ask your Personnel Office for an annuity estimate.  Contact Social Security to see if you are eligible for Social Security benefits - Request for Earnings and Benefit Statement to get a record of your earnings under Social Security and, if you will be eligible, an estimate of payment you may receive.  Contact your Personnel Office three months prior to your retirement date.  Check any designations of beneficiaries you may have on file to be sure that they reflect on your current needs.  Ask your Personnel Office for an annuity estimate.  Contact Social Security to see if you are eligible for Social Security benefits - Request for Earnings and Benefit Statement to get a record of your earnings under Social Security and, if you will be eligible, an estimate of payment you may receive.  Contact your Personnel Office three months prior to your retirement date.

57. QUESTIONSQUESTIONS  When will I get my first payment?  As soon as OPM receives the retirement records, they provide “interim” payments. These payments are usually made on the first of each month.  How much will my interim payments be?  Generally, interim payments average more than 80 percent of your final benefit.  When will I get my first payment?  As soon as OPM receives the retirement records, they provide “interim” payments. These payments are usually made on the first of each month.  How much will my interim payments be?  Generally, interim payments average more than 80 percent of your final benefit.

58. QUESTIONSQUESTIONS  What kind of things are withheld from my interim pay?  OPM only withholds Federal Income Tax. Health and Life Insurance coverage will continue. OPM makes necessary withholding for Federal taxes and health and life insurance premiums from the benefits sent when they are finished processing your application.  What kind of things are withheld from my interim pay?  OPM only withholds Federal Income Tax. Health and Life Insurance coverage will continue. OPM makes necessary withholding for Federal taxes and health and life insurance premiums from the benefits sent when they are finished processing your application.

59. QUESTIONSQUESTIONS  What information will I get about my benefits when OPM finishes processing my application?  OPM will send you a personalized statement entitled “Your Federal Retirement Benefits”. It details, among other things, how much your monthly payment will be. It also confirms such things as health and life insurance coverage, and provides information you will need to prepare your tax returns.  What information will I get about my benefits when OPM finishes processing my application?  OPM will send you a personalized statement entitled “Your Federal Retirement Benefits”. It details, among other things, how much your monthly payment will be. It also confirms such things as health and life insurance coverage, and provides information you will need to prepare your tax returns.

60. QUESTIONSQUESTIONS  May I change my health insurance coverage?  Yes. After you retire, you will still have the opportunity to change your enrollment from one plan to another during an annual open season. You cannot change to another plan simply because you retired.  May I change my life insurance coverage?  You may cancel or decrease your coverage at any time. You cannot increase your coverage.  May I change my health insurance coverage?  Yes. After you retire, you will still have the opportunity to change your enrollment from one plan to another during an annual open season. You cannot change to another plan simply because you retired.  May I change my life insurance coverage?  You may cancel or decrease your coverage at any time. You cannot increase your coverage.

61. QUESTIONSQUESTIONS  What about Cost of Living Increases?  The first cost of living increase is prorated based on how long you were retired before it is given. At that time, OPM will send you a notice explaining the increase.  About 1-2%.  What about Cost of Living Increases?  The first cost of living increase is prorated based on how long you were retired before it is given. At that time, OPM will send you a notice explaining the increase.  About 1-2%.

62. RETIREMENT RESOURCES  NALC Retirement Manual  Available at each branch office  Questions & Answers on FERS  www.nalcbranch908.com/fers.pdf  Survivors Guide to CSRS, FERS, & Social Security, and Preparing for Retirement  Leaflets at the branch office, or  http://www.nalc.org/depart/retire/nalcpubs.html  NALC Br. 79 (206) 284-3420  Web Sites  http://www.nalc79.org/Retired.html  http://www.nalc.org/depart/retire/index.html  NALC Retirement Manual  Available at each branch office  Questions & Answers on FERS  www.nalcbranch908.com/fers.pdf  Survivors Guide to CSRS, FERS, & Social Security, and Preparing for Retirement  Leaflets at the branch office, or  http://www.nalc.org/depart/retire/nalcpubs.html  NALC Br. 79 (206) 284-3420  Web Sites  http://www.nalc79.org/Retired.html  http://www.nalc.org/depart/retire/index.html