accrual. However, this means it is included in your “leave” service computation date (SCD) that is reported on your Leave & Earnings Statement and on your SF 50 Notification of Personnel Action statements. The rules for crediting service toward leave are sometimes different from the rules for service credit under CSRS and FERS retirement. If you have performed civilian service that was not covered by FERS retirement deductions prior to January 1, 1989, you may elect to make a service credit deposit for this time so that it will be credited for both eligibility and computation of your retirement.
RETIREMENT CONTRIBUTIONS
Q
I currently have more than 42 years of service and my retirement coverage is CSRS. I understand that I have reached the maximum CSRS annuity benefit and I am wondering when will my withholding for CSRS retirement deductions stop from my biweekly salary payments?
A
As long as you continue to work, your agency is required to continue to withhold CSRS retirement contributions. Normally, total service of 41 years 11 months (excluding unused sick leave credit) produces the maximum annuity under CSRS. There is no maximum annuity under FERS. This is determined once your retirement is finalized at the OPM. OPM will apply excess contributions to any deposit due for civilian service that was not subject to retirement deductions such as temporary service or seasonal employment and/or to any redeposit that may be due for refunded retirement contributions from service that ended on or after October 1, 1990.
OPM will then refund the amount of excess deductions and interest. At that time, you will be advised that you can return the amount to purchase additional retirement annuity. The additional annuity is computed in the same way as an employee who has made voluntary contributions under CSRS. More information may be found in the CSRS and FERS Handbook, Chapter 50, Computation of the Annuity Under the General Formula: https://www.opm. gov/retirement-services/ publications-forms/csrsfershandbook/c050.pdf.
Q
I am preparing to retire and have requested a retirement estimate. I noticed that the estimate didn’t include all my service in the calculation of my retirement benefit. The retirement specialist in my agency’s human resources office has told me that some of my service is not “creditable.” I’ve worked for 30 years and now learn that four of my years do not count. What can I do?
A
Usually, retirement eligibility is based on service that was covered by FERS or CSRS retirement deductions. Under CSRS, the rules allow credit for service performed prior to 10/1/82, where no deductions were withheld. The rules for FERS are different. If you have “nondeduction” service under FERS, this time is not creditable for retirement eligibility or computation of your FERS basic annuity benefit. This service will be included for leave accrual. However, this means it is included in your “leave” service computation date (SCD) that is reported on your Leave & Earnings Statement and on your SF 50 Notification of Personnel Action statements. The rules for crediting service toward leave are sometimes different from the rules for service credit under CSRS and FERS retirement. If you have performed civilian service that was not covered by FERS retirement deductions prior to January 1, 1989, you
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
292.219
-0.11
8.87
AUGUST SEPTEMBER
For FECA COLA updates, visit narfe.org and search for FECA.
NARFE MAGAZINE www.NARFE.org
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