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Show HILL TOP TIMES 1m Fridoy, July 25, 1986 Retirement system: By Val Buxton Civil Service vs. Federal Employees Benefit Civilian Personnel President Reagan signed the Federal Employees' Retirement System Act of 1986, Public Law June 6. This established a new Federal Employees Retirement System consisting of Social Security, Office of Personnel Management benefits and a thrift savings plan. Most employees hired on or after Jan. 1, 1984 are automatically covered by the Federal Employees' Retirement System which goes into effect Jan. 1, 1987. Between July 1, 1987 and Dec. 31, 1987, employees hired before Jan. 1, 1984 and covered by the Civil Service Retirement System will have an irrevocable choice to continue in that system or move to the Federal Employees' Retirement System. All employees will be given an opportunity to invest in the thrift plan. The following information was received from Air Force headquarters in Washington, D.C. As updated information is received, it will be published. For information call Ext 76142. Following is a comparison of the Civil Service Retirement System and the Federal Employees' 99-33- 5, . st year: 60 Accrued 1 annuity, but no less than 40 of salary base less social security benefit. After 1st year: 40 of salary base. salary base less 60 Civil Service Type Minimum age and service for full benefit Salary Base Benefit Social Security Age 65 to 67 depending on year of birth and 1 0 years service. Average of high three years salary. Average of high three years salary. Approx. high, five years Salary base times: 1.5 Salary base times: 1 .0 for all years or 1.1 for all for first 5 years plus 1 .75 for next 5 years plus 2.0 for years over 10. Eligi- bility Benefit years if employee is age 62 with 20 years service at retirement. SPOUSES BENEFITS-SURVIV- bility bility Benefit 55 of accrued Benefit but no less than 22 of salary base, 1 full $3,600 Benefit . When bility Over age 55 or under age JJ II year. 72 Age 60 federal service counts toward eligibility for benefits under federal employee retirement system. Unused sick leave credited under civil service retirement system equal to the smaller of: (1) sick leave at time of transfer or (2) sick leave at retirement. leave credit or older bility Survivor and disability coverage from federal Survivor Disability employees retirement system only. Cost-of- - The civil service reg tirement system increases are applied to that system's part of the benefit. Federal Employees Retirement g System's increases are applied to that system's part of the benefit. Living cost-of-livin- Increases 8 months to 0 years of service, depending on age. 1 1 social security. child. cost-of-livin- EMPLOYEE Not applicable, Up to 5 salary EMPLOYEE CONTRIBUTIONS Not applicable, of Up to 10 of salary. An amount approximately equal to the social security benefit based on federal service, offset by a portion of any earnings after None retirement. When added to benefit for other service and increased Coverage begins at time of transfer, All or age 50 and disabled or caring for a dependent 75 of full retirement benefit per TO FEDERAL EMPLOYEE RETIREMENT SYSTEM high-thre- bene-annuit- $2,800 per child, per year offset by the child's benefit under military service. Above benefit formula e applied to at time of base pay retirement. Pay Base to 100 of full tirement Over age 55; or under age 55 if not SUPPLEMENTAL BENEFITS-RETIR- ED Not Retiring before age 62 and receiving a full applicable. annuity. Beginning at minimum age for full benefit and ending at age 62. EMPLOYER CONTRIBUTIONS 1 of salary, plus 100 of first 3 that employee contributes, plus half of next 2 that employee contributes. Maximum government contribution is 5 of salary. INVESTMENT OPTIONS Federal to allow for inflation Eligi-ag- e Not bility applicable. When retire- - Annuitant had elected to provide survivor benefit. Not applicable, government securities. Before age 60 if not receiving a social security benefit. received BENEFIT 18 months service. 50 of retirees unreduced annuity. CHILDREN'S BENEFITS 8 months of 1 8 months of service, $2,800 per All under the civil service retirement system formula and service after the transfer is credited under the federal employee retirement system formula. Sick IIUl child per Credited if 3 contribution made for post--1 956 service. Not applicable. Service before the transfer is credited Age 60 or older or age 50 and disabled; or caring for a service. Benefits None. EMPLOYEES TRANSFERRING child. 1 None. dis-ha- 0 years service. service since 1983 and most other employ- 956 service. age 60 or d older; or abled and 50; or caring for a dependent remarried. ment. 5 years service. Credited if 7 contri- fit. received DISABILITY Eligi- - 55 of retirees later. sick leave bution made for post-- 1 annuity. applies to lower ranges of federal . before Military to 1 00 retirees service service. Unused service of Benefit minimum retirement age w 10 years sur- Sick Leave SURVIVORS OF DECEASED ANNUITANTS Election of Election of benefit Automatically benefit and and payment of contri- provided with bution of 1 0 of no election or payment of contribution reduction. retirees annuity. . of 2.5 up career, 15 to 40 of final salary. reduction. benefit is accumulated benefit at age 62; or a reduced benefit at de- to $3,600 and 1 0 over Federal rate. of ment. of full tirement benefit for Over age 55; Over age 55; or or under age under age 55 if not remarried. 55 if not remarried. salary. Eligi- Refund of 72 payment of $15,000, plus 50 of salary, plus annual annuity of 50 of accrued annuity of employee One-tim- e VESTING BEFORE RETIREMENT 1 0 5 years service. years Refund of contributions bution or full or full accumulated benefit at 62. .3 since 1983 or transfer, OF DECEASED EMPLOYEES 18 months to 1 0 years of 18 months of service. vivor category. w25 years service. contri- - 1 SERVICE CREDIT FOR BENEFIT COMPUTATION All federal All federal service federal if child. Full benefit without Social Security contribution All service. age and REDUCED RETIREMENT BENEFIT No Age 55 to 57 Age 62 with 1 0 benefit. (depending on year years of birth) and 1 0 service. years service. Full benefit reduced 70 to 80 of full retire5 per year under ment benefit. age 62. 5 years service Eligi- - General pending on received Reduced 2 a year for each year under age 55. currently salary. dependent High ratio 7 of salary, less Social Security contribution service received INVOLUNTARY RETIREMENT BENEFIT Not applicable. Age 50 w20 years service or any age Benefit of social ORS 18 months of service. Eligi- - bility a of salary. disability benefit When pay. Age 50 w 20 years service or any age w25 years service. CONTRIBUTIONS or full retirement benefit based on service to age 62. Eligi- - For Price Index. child. Federal Employees Retirement System Retirement Plan 30 years service and age 55 for employees born before 1948, increasing to age 57 for employees born after 1969; age 60 w20 years service or age 62 w5 years service. Consumer benefit. 7 BENEFIT Retirement System Age 55 with 30 years service; age 60 w 20 years service; age 62 w 5 years service. Index. Full retirement security. After age 62: Lesser of Retirement System: FULL RETIREMENT of Fund A: Federal government securities. Fund B: Fixed income securities. Fund C: Stock index fund. VESTING 8 months to 10 years service, depending on age. 1 G Annual increase equal to total increase in Sick leave INCREASES Full and Annual increase equal to total increase in Consumer Price Index, less 1 . Annual increase equal to total immediate. increase in Consumer Price Federal employees who resign to accompany their civilian or military sponsors overseas no longer forfeit accrued sick leave if they are not within two years. According to Pentagon officials, an Office of Personnel Management amended sick leave recredit regulation applies to employees who leave to accompany civilian or military sponsors. However, an employee has only two years after returning to the United States to be r in a new job, said Pentagon officials. The limit .is tied totheenrploee's return) not the return ed recredit reg amended ed two-yea- ; t v, Three years for the employers' 1 contribution. Full and immediate for all other contributions. of the sponsor. For example, if a civilian employee went with a military spouse to Europe for five years and then returned to the United States on July 10, 1986, four months before the spouse, the employee will recover all accrued sick leave provided he or she is reemployed by July 9, 1988. Under the old rules, officials said, employees forfeited their sick leave balance if they had a break in service of more than three years. The rule still applies to civilians whose breaks in service are not . |