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Show Hilltop Times April 6, 2006 Personnel answers retirement questions Civilian Personnel staff has received Editor's Note: This is the third in a series of articles outlining the Hill Voluntary Ear- calls from employees who work in many ly Retirement Authority program. base organizations and associate units at Hill who are in both retirement proBYMARILUTRAINOR^ grams. Ogden Air Logistics Center Public Affairs "There is a lot of curiosity about this ear•The topic of "Are you taking the early ly out opportunity," said Carolyn Bronson, out?" is one that many employees across chief of benefits and entitlements for the Hill have been talking about the last two 75th Mission Support Squadron Civilian weeks. It's more than just a water cooler Personnel Flight. "Many employees have discussion; it could mean some Hill work- expressed genuine concerns and quesers will soon be leaving for other ventions. We are answering the questions on tures. a case-by-case basis so the employee can Soon after the announcement on the Hill make educated decisions regarding this VERA was made in the March 23 edition early out." of the Hilltop Times, Hill's civilian perAccording to Karla Adams, Hill's VERA sonnel officials began fielding calls from program manager, another frequent quesemployees with many questions. Most tion employees are asking is how they will of the inquiries centered around general be ranked if they apply for VERA. topics such as "How do I know if I qualify "We have computer programs to help for this early out?" or "What kind of finan- us sort those who apply by series, grade, cial hit will I take if I decide to retire early competitive level and leave service combecause I am a FERS (Federal Employees putation date," Ms. Adams said. Retirement System) employee?" Civilian Personnel officials say there are Hill's Civilian Personnel officials are pro- several key points for everyone to underviding additional information this week to stand who might be looking at taking adhelp answer some of the questions they vantage of the VERA. These include: are receiving. One of the unique differ• The VERA goal is to reduce the numences about this VERA applies to those ber of employees who fall into certain who are in FERS. budget areas for this fiscal year, particuFERS employees who have reached their larly Budget Activity 04, the center's Opminimum retirement age and have at least erations and Maintenance (O&M) budget 10 years of service (5 or more years must fund. Employees paid through BA04 inbe creditable civilian service), will be eliclude funding for O&M, such as salaries, gible to retire early and they will not be force management and service-wide acsubject to a 5 percent retirement wage tivities. penalty for each year they're under age • Because VERA is being offered due to 62. Their retirement income will be largea funding shortfall in BA04, there will be ly based on a calculation formulated from no financial incentive offered to employthe length of their service and a percentees to take this early retirement opporage of their high three salary years. tunity. There are more than 3,000 BA04 "This VERA is being offered to eligible employees. Approximately 1,050 Hill employees who fall within both CSRS BA04 employees, who are paid through (Civil Service Retirement System) and this fund, are currently eligible for early FERS," said Andy Flowers, director of the retirement. Ogden ALC Personnel Directorate. "We • Any Hill employee who is eligible for need to reduce our overall costs for salaVERA may apply for this program and, if ries. VERA is a management tool that can working in another budget activity other be used to increase voluntary attrition than BA04, will be looked at on a case-byand prevent potential involuntary separacase basis. tions later on." • VERA allows employees who are not Mr. Flowers said that it is important that otherwise eligible, to retire. Those eligiemployees "understand there are differble for optional or regular retirement will ent early retirement eligibility criteria for not be considered for VERA. CSRS and FERS." • The window of opportunity for employ- ees to apply to be considered for VERA runs from Monday through May 1. The following are some fictitious employee scenarios created by Hill personnel specialists to illustrate who does or does not qualify for VERA. FERS employee scenario No. 1: FERS employee, age 57, 27 years of civilian federal service. VERA offered to employee. Employee meets minimum retirement age, plus 10 years of service but less than 30 years of service. Q: Would this FERS employee receive a 5 percent penalty for every year under age 62? A: No. As long as the VERA is offered to the employee and the employee applies and is selected to take the VERA, there is no 5 percent penalty. FERS employee scenario No. 2: FERS employee, age 50, 21 years of civilian federal service. VERA not offered to employee. Employee meets minimum retirement age, plus 10 years and is eligible to retire. Q: Outside of a VERA window of opportunity, can a FERS employee retire at any time once they reach their minimum retirement age, plus 10 years of civilian federal service? A: Yes. Because this employee is eligible for optional retirement, they would not be eligible, however, to participate in the VERA opportunity currently being offered. Q: A person that reaches age 50 and has at least 20 years of civilian federal service, can they retire under this VERA? A: Yes. This FERS employee met the criteria under VERA because he/she is age 50 with 20 years of service or 25 years of service at any age. FERS employee scenario No. 3: FERS employe, age 47, 27 years of civilian federal service. Q: Is this person eligible to retire early? A: Yes. Because the employee does the meet the requirement of the 25 years minimum service, his or her age is no longer a computation factor. Q: What if he is age 65 with 20 years service? A: No, he is eligible for regular retirement. RETIREMENT CATEGORIES CIVIL SERVICE RETIREMENT SYSTEM (CSRS) Optional Retirement: 55 years old with 30 years of service 60 years old with 20 years of service 62 years old with 5 years of service Early Retirement: *50 years old with 20 years of service *Any years old with 25 years of service NOTE: 2 percent penalty for each year under age 55 for CSRS retirees. The months are prorated 1/6 of one percent for each full month when increments are less than half a year. FEDERAL EMPLOYEES RETIREMENT SYSTEM (FERS) Minimum retirement age with 30 years of service 60 years old with 20 years of service 62 years old with 5 years of service Minimum Retirement Age (MRA): Additional FERS Category Optional FERS (MRA+ 10): Once you have reached your MRA and have at least 10 years of service (5 or more years must be creditable civilian service) you are eligible to retire, but you will be subject to a 5 percent penalty for each year under age 62. MILITARY RETIREES: Eligibility met by meeting any of the categories above by combining military and civilian time and waiving military retiree pay. Must make a deposit for the years of military service. If you have military service after Jan. 1 1957 and have not paid your Post-56 Military Deposit, please contact the benefits and entitlement section of personnel for the appropriate form. If you have military service, you will be required to submit a copy of all forms DD214 (Notification of Discharge), or equivalent, that cover all periods of military service. If you or your 201 files do not have the required forms, you may write to the following address: National Personnel Records Center, GSA, Military Personnel Records, 9700 Page Boulevard, St. Louis, MO 63138 COMMUNITY MATTERS SERVE YOUR HOMETOWN AS A MEMBER OF THE AIR NATIONAL GUARD '%*>..',SlL,.'~. s'i'e As an active and integral part of our communities, the Air National Guard is always there - in the best of times and the worst of times. While you may be thinking of returning to civilian life, your experience and leadership qualities are still very much needed by your hometown Air Force - the Air National Guard. In return for your part-time service, the Air National Guard will > Count time served on active duty toward your Air Guard retirement > Recognize the military rank you held at time of active duty discharge > Offer additional training in your field or a completely new career > Provide eligibility for the VA Home Loan Program >• Reinstate many of your active duty military benefits * •• • 1-800-TO-GO-ANG www.GoANG.com Enter a new era of military service. Call 1-800-864-6264 today for . more information. GUARDING AMERICA, DEFENDING FREEDOM .•A |