Director of Retirees – O.D. Elliott
101-78TH -Ave, N.E.
WHEN CAN I RETIRE?
That’s a question I often hear. Not accounting for disability retirement, the answers are as follows.
Under CSRS (Civil Service Retirement System), you are eligible for optional retirement at age 55 with 30 years of service, age 60 with 20 years of service or age 62 with 5 years of service.
Under FERS (Federal Employees Retirement System), you are eligible for optional retirement with 30 years of service provided you have reached MRA (Minimum Retirement Age), age 60 with 20 years of service or age 62 with 5 years of service. Note: The MRA is determined by the year of your birth, ranging from age 55 if you were born prior to 1948 to age 57 if you were born in 1970 or later. Under this retirement, you would also receive a supplement from OPM. This supplement would continue until the age of 62. At that time, you would be eligible for Social Security. It would be your choice whether to take Social Security at that time or delay it. Each year you delay it would mean additional money when you do take it.
Under FERS, a carrier can take Early Retirement With Reduced Benefits with a minimum of 10 years of service provided they have reached their MRA. The reduction in this type of retirement is equal to 5 % for each year (or 5/12 of one percent for each month) under the age of 62. This reduction is permanent and does not stop when the retiree reaches age 62. It should be noted that if you take an early retirement with reduced benefits, you would not receive the OPM Supplement.
There are provisions for Disability Retirement under both CSRS and FERS. Under both systems, to qualify for disability, the employee must become totally disabled for useful and efficient service in the position held. Under CSRS, a carrier is required to have completed at least 5 years of service for eligibility and under FERS, the carrier is required to have completed at least 18 months of service.
It should be noted that accumulated sick leave does not count towards the number of service years needed for eligibility in either CSRS or FERS retirement. In both types of retirement, accumulated sick leave only counts toward the years of service in computing the dollar amount of your annuity.
Director of Retiree Affairs
ATTENTION CCAs !!
Just got hired, not thinking about retirement? –Think again. Time has a way of slipping up on you. Thirty-five years from now, you may still be in the USPS, and in wonderment about where the years have gone. Don’t let it take you by surprise. Start planning today as if you already are planning to make the Postal Service your career. You already know that as a CCA you are not vested in the Federal Employees Retirement System (FERS). However, the NALC does provide you with a way to begin saving toward a future retirement. The NALC provides CCAs with a CCA Retirement Savings Plan through the NALC’S Mutual Benefit Association (MBA). This plan is a retirement income plan designed to supplement CCAs’ pensions by having them make small payments to the plan. The minimum amount allowed is $15 per pay period. You can make these payments through payroll deduction, be billed monthly or annually, or make a lump sum deposit at any time.
The plan has competitive interest rates. You can choose whether to invest your money in a Roth individual retirement account (IRA) or in a traditional IRA . Once you become a career carrier, you may transfer these savings to the Thrift Savings Plan under FERS.
Once you become a career carrier, you are automatically enrolled in FERS. Initially, when converted to full-time career status, you will be enrolled in TSP with 3% of your base pay deducted from your pay, matched by the USPS and deposited in your TSP account. Please know that you can increase, decrease or cancel your TSP contributions.
If you begin your full-time career status making the maximum TSP contribution immediately, you won’t miss it. However, the longer you delay in increasing your contributions, the more difficult it will become. So THINK AGAIN, AND THINK AHEAD
DIRECTOR OF RETIREES