Retirements and Benefits

Non-reduction in Pay for Certain Federal Civilian Employees on Active Duty in the Uniformed Services or National Guard

A new law was passed for federal technicians who are called to active duty in the uniformed services. This law states that employees will receive a supplemental payment equal to the amount by which civilian basic pay exceeds (if at all) military pay and allowances allocable to the given period. Basically, if a federal technician earns more on the civilian side than the military, they will receive a supplemental payment, therefore will not lose income by going on a deployment/activation. The law was effective 15 March 2009, however, the Office of Personnel Management (OPM) will be issuing further guidance and regulations as soon as possible. They don't know exactly how the budget and military/civilian reconciliation will work. Once they give us further guidance it will be retro to 15 Mar 2009, so those technicians who fall into this category should keep their orders and military/civilian LESs. See that attached OPM Letter dated 3 Apr 2009.

Service Computation Date (SCD) Changes for New Federal Technicians

Before in-processing, new employees are asked to bring in all DD 214s or Title 10 orders to adjust their SCD. Only Title 10 military service is creditable for SCD purposes. The SCD is adjusted, giving credit for this Title 10 military service and any previous federal civilian service. The SCD change is for Leave and Reduction-In-Force purposes only. A military deposit is required for retirement credit. A technician can see what their SCD is by looking at an SF 50 in block 31.

The Service Computation Date determines the annual leave rate accrual rate:

0-3 years = 4 hours per pay period
3-15 years = 6 hours per pay period
15 + years = 8 hours per pay period

Please see guidance letter regarding Military and Leave Without Pay U.S. deposits available on HRO webpage.

Military Activation of Federal Technicians

Technicians must be provided the option of using available leave, i.e., Military, Annual, Comp Time or LWOP, or any combination (except sick leave) when placed on military orders before they go on LWOP U.S. Technicians going on LWOP U.S. over 30 days must provide HRO with an SF 52, along with a copy of the orders. Technicians who are activated and have a Thrift Savings Plan loan must notify HRO so the loan may be suspended while on active duty-mil to avoid a taxable distribution of the loan due to non payment. HRO is also required for notify the TSP office upon return to duty.

Upon a return to duty, technicians have the opportunity to make up missed TSP contributions while they were on LWOP U.S., and the government will pay their matching, plus any interest. Please see tsp.gov for further guidance on the process.

New Presidential Leave Guidance for Title 32 National Guard Technicians

 

GENERAL INFORMATION:   The National Guard Technician Program consists of two retirement systems:

    - Civil Service Retirement System (CSRS)

    - Federal Employees Retirement System (FERS)

The Civil Service Retirement System covers National Guard Technicians employed prior to 1 January 1984. If you are just entering the Federal system, you will be in the Federal Employees Retirement System. Both CSRS and FERS provide the technician a measure of income protection in case of disability. Both retirement systems will provide for your family in case of death and will pay you an annuity after your retirement. Each Technician contributes 7% of gross pay towards retirement. For FERS employees, 6.2% pays for the Social Security portion of retirement and 0.8 % is for the FERS retirement fund.

Please review The CSRS and FERS Handbook, Chapter 40, for it provides information on various time frames for planning your retirement. The handbook is located at: www.opm.gov/asd/htm/hod.htm.

CIVIL SERVICE RETIREMENT SYSTEM (CSRS): Your age and number of years of federal service determine your eligibility for retirement. To be eligible for an immediate annuity you must be:

Voluntary CSRS Retirement
    - Age 62 with 5 years service, or
    - Age 60 with 20 years service, or
    - Age 55 with 30 years service

Involuntary CSRS Retirement - Involuntary Retirements occur if a technician loses military membership for reasons NOT related to misconduct or non-performance. When this occurs, and the CSRS technician is age 50 with 20 years of federal service, or any age with 25 years of service, he/she is eligible for an immediate retirement annuity. However, there is a 2% reduction in your retirement annuity for each year your age is under 55.

For more information concerning CSRS visit : www.opm.gov/retire/html/retirement/csrs.html

FEDERAL EMPLOYEE RETIREMENT SYSTEM (FERS): The FERS retirement is a three-tiered program including FERS, Social Security and the Thrift Savings Plan. The rule of thumb to determine the FERS basic benefit annuity is 1 percent of the high-three average salary multiplied by length of creditable service. For example, if you are a FERS technician and you work for 20 years, your retirement annuity will be 20% of your average “high 3”.

FERS Overview

For more information concerning FERS visit: www.opm.gov/retire/pre/fers/index.asp
 

FEDERAL EMPLOYEE RETIREMENT SYSTEM (FERS) Sick Leave Credit Becomes Law
President Obama signed legislation on October 28, 2009 that allows federal workers who retire under the Federal Employees Retirement System (FERS) to receive credit for sick leave when they retire.

The law allows FERS covered workers to receive 50% credit for unused sick leave until December 31, 2013.  Starting on January 1, 2014 FERS employees will receive full credit for unused sick leave at retirement.

TSP Update for Federal Employees
Title: H.R. 1256 – Implementation of Immediate Agency Contributions for Participants Covered by the Federal Employees’ Retirement system and Equivalent Federal Retirement Plans

H.R. 1256 Act passed on June 12, 2009. This new law eliminates the waiting period for employees covered under the Federal Employees Retirement System (FERS) to receive Agency Automatic 1% and agency matching contributions.

All new federal employees will be immediately eligible for the agency 1% contribution, plus agency matching contributions upon employment.

For more information, please go to www.tsp.gov under TSP Bulletin 09-8 for more detailed information.
 

Military Deposit
Computing the Post-1956 Military Deposit for Employees On LWOP-US Who Receive Civilian Pay During Their Active Military Duty

Military Deposits and Leave Without Pay LWOP U.S. Deposit Requirements/Information

Service Credit Deposit Information for Title 10 Military Service (Military Buy-Back)

Requirement for Deposit of Leave Without Pay (LWOP) for Retirement Purposes