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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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fedupfedup  
#1 Posted : Monday, December 16, 2019 3:52:11 PM(UTC)

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I am a CRS federal employee. I plan to retire sometime in 2020, it is most likely I will go over the 41 years and 11 months. I might be working five months more. I worked from 1975 to 1978 and stupidly took out the pension. I understand if I go past the 80%That the pension will still be deducted and it will go to pay some of the money that I took out. I wanted to know if this would increase my pension being I am paying some of it back, I understand that I still get credit for the time I worked even though I took out the pension in those early years. Thank you
postalvet  
#2 Posted : Monday, December 16, 2019 5:05:02 PM(UTC)
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Originally Posted by: fedupfedup Go to Quoted Post
I am a CRS federal employee. I plan to retire sometime in 2020, it is most likely I will go over the 41 years and 11 months. I might be working five months more. I worked from 1975 to 1978 and stupidly took out the pension. I understand if I go past the 80%That the pension will still be deducted and it will go to pay some of the money that I took out. I wanted to know if this would increase my pension being I am paying some of it back, I understand that I still get credit for the time I worked even though I took out the pension in those early years. Thank you


all the info you need is at the opm and other web sites;
https://www.federalretir...et/rehired_annuitant.htm

https://www.opm.gov/reti...rsfers-handbook/c100.pdf
racist here call me postal patty

Postal retired 38yrs Just Sayin


Black Lives Matter

#dumptrump2020

wear a mask
fedupfedup  
#3 Posted : Monday, December 16, 2019 5:17:34 PM(UTC)

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That is a lot to read ,I thought I could possibly get a reply answer , TY
postalvet  
#4 Posted : Monday, December 16, 2019 7:05:20 PM(UTC)
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Originally Posted by: fedupfedup Go to Quoted Post
That is a lot to read ,I thought I could possibly get a reply answer , TY


same answer as your other thread.

you would still have to read it to verify the answer.
racist here call me postal patty

Postal retired 38yrs Just Sayin


Black Lives Matter

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wear a mask
SD Analyst  
#5 Posted : Thursday, January 9, 2020 4:14:07 PM(UTC)
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Originally Posted by: fedupfedup Go to Quoted Post
I am a CRS federal employee. I plan to retire sometime in 2020, it is most likely I will go over the 41 years and 11 months. I might be working five months more. I worked from 1975 to 1978 and stupidly took out the pension. I understand if I go past the 80%That the pension will still be deducted and it will go to pay some of the money that I took out. I wanted to know if this would increase my pension being I am paying some of it back, I understand that I still get credit for the time I worked even though I took out the pension in those early years. Thank you

Well, I know this is late, but here is my answer (same situation). I researched this pretty in depth. The time where you received a refund for service 1975-1978 still counts for retirement. Because it is before 10/1/1991, you get what's called an "actuarial reduction," or a small amount off your pension. In most cases, it is NOT worth it to pay the time back. Now, if the time were after 10/1/1991, you would need to pay it back or those years wouldn't count for your pension.

Here is an example of the Actuarial Reduction: If a redeposit is NOT made for a period before 1991, the "Present Value Factor" at the age of retirement is divided into the amount owed for that redeposit. The result is the monthly annuity reduction. For example: Owe $60,000. Age at retirement: 62. Present Value Factor: 193.3: $60,000/193.3=$310.40 per month reduction in annuity.

See CSRS/FERS Handbook, subchapter 53C, section 53C1.1-1 for the present value factors for CSRS employees.

I have run the calculations myself, and will not be paying back the refund prior to 1991 that I also took out. When you file for retirement, OPM will send you a statement letting you know what it will cost and the difference it will make in your annuity. You can also request your Agency do a Retirement Estimate and that should include the same information.




thanks 1 user thanked SD Analyst for this useful post.
GordonG on 1/10/2020(UTC)
fedupfedup  
#6 Posted : Thursday, January 9, 2020 4:40:03 PM(UTC)

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Thank you for your reply. My question is : Being I am working over the 41 years and 11 months and retirement will still be taken will that retirement That is being taken out of my salary go towards the debt that I owe. Thank you
Roger.D  
#7 Posted : Thursday, January 9, 2020 5:49:23 PM(UTC)
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You should ask Ed in the Federal Benefits Q&A section.
fedupfedup  
#8 Posted : Thursday, January 9, 2020 6:25:17 PM(UTC)

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Thank you
SD Analyst  
#9 Posted : Tuesday, January 14, 2020 4:00:58 PM(UTC)
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Originally Posted by: fedupfedup Go to Quoted Post
Thank you for your reply. My question is : Being I am working over the 41 years and 11 months and retirement will still be taken will that retirement That is being taken out of my salary go towards the debt that I owe. Thank you

No. You have to make a separate payment for the owed Redeposit. You need to fill out SF-2803, CSRS Application to Make Deposit or Redeposit, send it to your Personnel Office for them to verify your service, and they will send direct to OPM. It takes 6-9 months for OPM to send you a statement telling you what you would owe to pay the Redeposit. So, don't wait. You can get the form at: https://www.opm.gov/forms/pdf_fill/sf-2803.pdf

The excess retirement you pay in beyond 41 yrs 11 months will either be refunded to you or can be used to increase your annuity beyond the 80% max.

fedupfedup  
#10 Posted : Wednesday, January 15, 2020 10:18:56 AM(UTC)

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fedupfedup  
#11 Posted : Wednesday, January 15, 2020 10:24:40 AM(UTC)

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Found out what my answer is, if I do work over 41 years and 11 months the pension that is deducted will be added to the money that Is owe, That is the answer that I wanted that I received from my personal office, I was not really talking about paying it all back I just wanted to know if I worked over that time. Where would that money go and now I found out
postalvet  
#12 Posted : Wednesday, January 15, 2020 10:28:26 AM(UTC)
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Originally Posted by: fedupfedup Go to Quoted Post
Found out what my answer is, if I do work over 41 years and 11 months the pension that is deducted will be added to the money that Is owe, That is the answer that I wanted that I received from my personal office, I was not really talking about paying it all back I just wanted to know if I worked over that time. Where would that money go and now I found out


this is what I figured, nice to know for sure.
racist here call me postal patty

Postal retired 38yrs Just Sayin


Black Lives Matter

#dumptrump2020

wear a mask
fedupfedup  
#13 Posted : Wednesday, January 15, 2020 2:46:19 PM(UTC)

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Yes nobody knew, frustrating
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