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Retirement Planning


Whether you are close to federal employee retirement or just starting out in your career, this is the place to share ideas with your federal colleagues on creating a secure financial foundation.


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fred123  
#1 Posted : Friday, March 24, 2006 3:45:50 AM(UTC)
fred123

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Joined: 12/27/2005(UTC)
Posts: 93

Just got this letter from OPM today. Tried to access there website but not able to so I'm coming here cause I know I will get the proper advice. I went out on Disability Retirement on 02/07/2006. My high 3 came to $30,1000. Since thent he only check I have got was for $950. I figured it would take a few months before I would get my annuity figured out. No problem there. The letter that I got today tells me that my Interim Payment will be $1,507.00 minus $162 for federal tax.for a total of $1345.00. The last sentence of the letter say's "We will mail you another notice the next time your payment amount changes". The letter is not clear that this will be my monthly annuity amount. Since my annuity amount is $30,100.00 the figure of $1507.00 per month does not add up. I thought I would get a monthly statement,like my regular paycheck,that would list my deductions such as fed and state taxes,health care coverage,etc. I have tried calling them but am always put on hold. Would appreciate your input. Thanks!
edalder  
#2 Posted : Friday, March 24, 2006 5:03:22 AM(UTC)
edalder

Rank: Senior Member

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Joined: 10/9/2001(UTC)
Posts: 1,541

The key word here is "interim".

When OPM finalizes your annuity, you will get another letter.

If you are in FERS, the process does take awhile as they will need to find out the status of your application for Social Security Disability (SSD) on top of everything else.
Kivi
EWGuy  
#3 Posted : Friday, March 24, 2006 7:17:13 AM(UTC)
EWGuy

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I retired September 30, 2005 from the Department of Navy. I received my annual leave lump sum with my final paycheck on October 7th. On November 1, 2005 I received the first interim paycheck which was 69% of what I expected my full annuity. Your first interim check appears to be about 60% of what you expected. This is not unusual. I received the adjustment paycheck on November 2nd. This is the makeup pay which when added to the interim pay totals my full annuity. My receipt of adjustment pay was sooner than normal. The adjustment paycheck normally takes a couple months. When you receive the adjustment pay, the next paycheck is the full pension pay.

The monthly interim pay has just federal tax withheld. The adjustment pay has federal tax, health insurance, and life insurance premiums withheld. State taxes are not withheld from the interim, or the full annuity pay. You must call or log into OPM retirement services web site to add State Tax withholding. In order to do this you must first receive your CSA number and PIN from OPM. I received my CSA number on October 20th, personalized retirement benefits booklet on October 31st, and the PIN on November 2nd. My first regular annuity pay was deposited December 1, 2005.

I went to the OPM retirement services on the Internet (http://www.opm.gov/retire/) and changed my direct deposit, and added financial allotments. By default, the interim pay has just federal taxes withheld. The state taxes are not withheld from either interim or full retirement annuity pay. You have to either telephone OPM retirement or enter the OPM retirement services Internet site. You will need your CSA number and PIN to access either system. You have to calculate yourself the amount of federal and state taxes to be withheld in terms of US dollars.
fred123  
#4 Posted : Friday, March 24, 2006 9:05:48 AM(UTC)
fred123

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Posts: 93

As usual I ask a question and I get the fact's. Many,many thanks.
hpspin  
#5 Posted : Saturday, March 25, 2006 6:28:01 AM(UTC)
hpspin

Rank: Newbie

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Joined: 10/9/2001(UTC)
Posts: 13

Hey Fred123!

I retired on 1/3/06 and have received interim payments for 1/06 and 2/06. The February interim payment was for about 70% of personnel office's calculated annuity for me. I too received an OPM letter informing me of the change in amount from the partial interim annuity payment for 01/06 to the full month's interim annuity payment for 02/06, and with the exact same wording at the end. I haven't received any other notice yet about what will be for 03/06, although I did receive my CSA card and number. I was able to change my residence address with the OPM help line while I am in this interim status. Its all OK with me as others on this site have told me that because a lot of FED employees retire at the end of the calendar year, it takes OPM a number of months to calculate the full annuity amount. Don't know WHY it takes THIS long, in THIS DAY and AGE!!!???? I have been solely CRS and worked for one agency for 32 years. Ya' think this could be processed faster than an SSA Disability claim? :0) That's OK, I'm chillin' in retirement, moving to AZ, and will look forward to my underpayment!!!!
hpspin  
#6 Posted : Saturday, March 25, 2006 6:30:42 AM(UTC)
hpspin

Rank: Newbie

Groups: Registered
Joined: 10/9/2001(UTC)
Posts: 13

While I did receive my CSA card and number, I haven't received my PIN, so I don't have access to the OPM website. I believe that you receive the PIN with the booklet once OPM converts you from interim to full annuity status. At least that is what happened with a co-worker of mine who retired several months before me.
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