an extension, your agency must notify you in writing of your mandatory date at least 60 days in advance. Action to separate the employee is not effective until the last day of the month in which the 60-day notice expires.
TRANSFER OF DECEASED SPOUSE’S TSP
Q
I’m an active federal employee. Last year my spouse, who has been retired under FERS, passed away at age 65 and I inherited his TSP account. I decided to transfer his TSP balance into my TSP account. I am currently 62 and plan to retire in a couple of months. Is there anything I should be aware of?
A
Initially, your late husband’s TSP account was used to create a “Beneficiary Participant Account” (BPA) for you. For surviving spouses who choose to keep the inherited BPA, please refer to the Beneficiary Participant Account Guide booklet 33 available at https://www.tsp.gov/ publications/tspbk33.pdf. For BPAs, the TSP will calculate any required minimum distributions (RMDs) to be paid in the year of the participant’s death using the deceased participant’s age, prior yearend account balance, and the IRS Uniform Lifetime Table. If your spouse was younger than 72 and would not have turned 72 before the end of the year, you must begin receiving RMDs by December 31st of the year your spouse would have turned 72. In the years following the deceased participant’s death, they calculate the annual amount of your RMD using your age, your prior year-end account balance, and the IRS Single Life Expectancy Table. One major downside to a BPA from a tax standpoint is that death benefit payments made
from a BPA must be paid directly to your beneficiary(ies). These payments are subject to certain tax restrictions and cannot be rolled over to an IRA or eligible employer plan. In addition, your beneficiary(ies) will have to pay the full amount of taxes on the taxable portions of the payment in the year it is received. Now that you’ve moved this money to your TSP account, it is important to understand required minimum distribution (RMD) and other tax requirements that will apply to your entire TSP account. Please see TSP Publication 26, Tax Rules about TSP Payments here https://www.tsp.gov/ publications/tspbk26.pdf.
RETIREMENT SURVIVOR BENEFIT FOR SPOUSE OF FERS ANNUITANT
L
I am a retired Federal Employees Retirement System (FERS) employee.
When I retired, I elected a full survivor benefit for my spouse. My spouse is currently receiving monthly Social Security payments based on her own work record. If I predecease my spouse, will my spouse’s FERS survivor benefit from OPM be affected by the money she receives each month from Social Security? Will the Social Security benefit that she earned for herself be affected by the FERS survivor benefit that she would receive?
A
Upon your death, the FERS survivor benefit that you elected for her will never affect the Social Security benefit that your wife earned for herself, and vice versa. Her Social Security benefit will never have a negative impact on her FERS survivor benefit payment from OPM.
FEHB COVERAGE FOR NEW SPOUSE
Q
Although I am a federal retiree, I’m also a surviving spouse of a
COUNTDOWN TO COLA The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW) increased 1.57 percent in June 2022. To calculate the 2023 cost-of-living adjustment (COLA), the 2022 thirdMonthly % % Change MONTH CPI-W Change from 253.412 quarter indices will OCTOBER 2021 271.552 0.92 1.17 be averaged and compared with the NOVEMBER 273.042 0.55 1.72 2021 third-quarter DECEMBER 273.925 0.32 2.05 average of 268.421. JANUARY 2022 276.296 0.87 2.93 The percentage FEBRUARY 278.943 0.96 3.92 increase determines MARCH 283.176 1.52 5.50 the COLA. June’s index, 292.542, is up 8.99 APRIL 284.575 0.49 6.02 percent from the base. MAY 288.022 1.21 7.30 The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services.
JUNE
292.542
1.57
8.99
JULY AUGUST SEPTEMBER
For FECA COLA updates, visit narfe.org and search for FECA.
NARFE MAGAZINE www.NARFE.org
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