Countdown to COLA

how the hours are converted to service credit?

AYou are correct. Unused sick leave hours are credited in the computation of your Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) retirement; however, the credit for sick leave cannot be used to determine when you are eligible to retire. You have to be old enough and have enough creditable service to meet the minimum age and service requirements under both CSRS and FERS, but sick leave credit can be used to increase the dollar value of your retirement benefit. Using the 2,087-hour sick leave conversion chart, you can find your hours of sick leave credit and see which column of months and row of days it is equal to. If your number of hours falls between two of the numbers on the chart, round up to the higher number. If you have more than 2,087 hours of sick leave, then subtract 2,087 from your balance since you have more than one year of sick leave credit. The credit for sick leave is added to your total length of service. The chart used to convert hours of sick leave to months and days of credit can be found here: www. opm.gov/retirement-services/ publications-forms/pamphlets/ ri83-8.pdf.

Your retirement is computed based on whole years and months, which means that any leftover days fewer than 30 are not used in the computation. Once you determine your date of retirement and project the balance of potential hours of sick leave, you can find out if you have any leftover days. Those days can be converted back to hours of “use or lose” sick leave credit using the chart and finding the hours next to the column labeled “days.” Most federal agencies have retirement benefits specialists who can help you determine an estimate of your total creditable service along with sick leave credit. Remember, however, that the Office of Personnel Management (OPM) is the final authority on the computation of your CSRS or FERS retirement benefit.

RETIREMENT

RETIREMENT ELIGIBILITY

QI worked for a federal agency for more than five years and had deductions for retirement benefits before I left. Am I eligible for any benefit?

AYes, you would be eligible for a deferred retirement as long as you were covered by a retirement system (CSRS, CSRS Offset or FERS) for at least five years while working as a civilian and left your contributions in the retirement fund. To apply, submit the appropriate application approximately 60 days prior to your 62nd birthday. You can submit them if you have already turned 62. • CSRS and CSRS Offset: OPM

Form 1496A - “Application for Deferred Retirement”: www.opm.gov/forms/ pdf_fill/opm1496a.pdf and

CSRS pamphlet: www.opm. gov/retirement-services/ publications-forms/ pamphlets/ri83-13.pdf.

CSRS Offset pamphlet: www.opm.gov/retirementservices/publications-forms/ pamphlets/ri83-19.pdf. • FERS: RI 92-19 - “Application for Deferred or Postponed

Retirement” http://www.opm. gov/forms/pdf_fill/ri92-19. pdf and FERS pamphlet: www.opm.gov/retirementservices/publications-forms/ pamphlets/ri92-19a.pdf.

Note the need to submit additional documentation as indicated on the forms. NARFE’s

COUNTDOWN TO COLA

MONTH CPI-W Monthly % Change

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW) increased 1.21 percent in May 2022. To calculate the 2023 cost-of-living adjustment (COLA), the 2022 third- % Change quarter indices will from 253.412 be averaged and OCTOBER 2021 271.552 0.92 1.17 compared with the NOVEMBER 273.042 0.55 1.72 2021 third-quarter average of 268.421. DECEMBER 273.925 0.32 2.05 The percentage JANUARY 2022 276.296 0.87 2.93 increase determines FEBRUARY 278.943 0.96 3.92 the COLA. May’s index, MARCH 283.176 1.52 5.50 288.022, is up 7.30 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 JUNE beverages, housing, apparel, JULY transportation, medical AUGUST care, recreation, education and communication, and SEPTEMBER other goods and services. For FECA COLA updates, visit narfe.org and search for FECA.

Federal Benefits Institute has webinars members can watch to help prepare them apply for a regular or deferred retirement. To view the archived webinars, visit www.narfe.org/federal-benefitsinstitute/narfe-webinars/ webinar-archive/.

MRA+10 RETIREMENT

QI was eligible to retire under FERS MRA+10 when I left government service. How do I apply for my benefit?

AEmployees who have reached the minimum retirement age (MRA) but didn’t complete enough service for an immediate, unreduced retirement may choose to resign and postpone applying for the FERS basic retirement benefit to avoid a 5 percent reduction to their annuity for each year they are under age 62. This option of postponing a FERS retirement to avoid the age reduction is available to employees who have reached the MRA with 10 or more years of service but less than 30 years, or those who are age 60 or 61 who have less than 20 years of service but more than 10. Follow the instructions in the prior response for filing an application for a deferred or postponed retirement under FERS.

CIVILIAN RETIREMENT FOR MILITARY VETERANS

QA recent “Benefits Brief” column discussed the possibility of increasing retirement benefits for veterans. Can I make a deposit for my military service after retirement?

AUnfortunately, military deposits must be made while still employed. Information on how employees can make the deposits were in the May and June 2022 issues of NARFE Magazine. All archived editions are available for members at www.narfe.org/ magazine-issues/.

RETIREMENT UNDER MULTIPLE SYSTEMS

QI’m so confused. I retired on January 1, 2021, under CSRS Offset retirement coverage. During my 24-year career, I was covered under CSRS for seven years in the 1970s. I left federal service for a few years and then returned in the 1980s under a temporary appointment where I was only paying into FICA (Social Security) for three years. After that appointment ended, I again separated from federal employment, but I returned in 2007 and was covered under the CSRS Offset retirement plan for 14 years. How does my retirement get computed with three different retirement coverages? Am I affected by the Windfall Elimination Provision (WEP) since I will receive a pension from work where I didn’t pay into Social Security for seven years?

ARetirement can be confusing, especially when your coverage has changed with each new appointment. The WEP requires that Social Security use a different formula for those who receive a pension that was not subject to Social Security (e.g., CSRS) unless you meet one of the exceptions. You may meet the exception of having performed 30 or more years with substantial Social Security covered earnings. There is a partial exception for those with 20 to 30 years of substantial earnings. The Fact Sheet on WEP (http://www.ssa.gov/ pubs/EN-05-10045.pdf) lists how much income is required to be considered a substantial earnings amount. You can find the amount you earned each year on your Social Security earnings record by creating a “my Social Security” account at www.ssa. gov/myaccount/.

There may be a time in your federal career when you didn’t have retirement coverage but were covered by FICA (Social Security) only. The time that you were covered under the CSRS Offset retirement coverage was also covered by FICA (Social Security). You also need to know that your retirement will be reduced, or “offset,” when you are receiving your CSRS retirement and also qualify for Social Security retirement benefits. To learn more about CSRS, CSRS Offset and the deposit you owed for your temporary service that was not subject to retirement deductions but only the FICA tax, visit www. opm.gov/retirement-services/ csrs-information/.

NARFE continues to lobby for a repeal or reform of the WEP and the Government Pension Offset (GPO). To read more on NARFE’s support of changing these laws that impact those who receive pensions from work not covered by Social Security, visit www.narfe.org/advocacy/ issue-briefs-and-fact-sheets/.

FEGLI PROCESSING TIME

QWith a substantial delay in processing the death of an annuitant, is the processing of a life insurance claim also delayed?

AFederal Employees’ Group Life Insurance (FEGLI) death benefits should be paid by the insurance

company within 30 days from the date a beneficiary filed a notice of claim and submitted all necessary supporting documents. FEGLI must receive the following documents to pay death benefit claims: • Form FE-6 – “Claim for

Death Benefits:” www.opm. gov/forms/pdf_fill/fe6.pdf, or claim for a dependent covered under Option C family coverage, form FE-6

DEP: www.opm.gov/forms/ pdf_fill/fe6dep.pdf. • A certified copy of the death certificate is required with the cause and manner of death. • If you signed a document with a funeral home that authorizes payment directly to them, include a copy of that document. • If the insured was an active employee who died in an accident and you’re making an accidental death benefit claim, include proof of the accident— police reports and other supporting documents. • If you are filing this claim on behalf of the estate, include a copy of the appointment papers issued by the court. • If a trust is designated, include a statement that the trust is still in effect and you are authorized to act under the trust, and a copy of the trust document. If you are not the original trustee, include a copy of the page naming you as successor trustee. • If you have power of attorney, include a copy of the appointment papers naming you as the attorney-in-fact for the beneficiary.

The best way to ensure prompt processing of a claim is to talk to a FEGLI claims representative by calling 1-800-633-4542. The OFEGLI is available Monday through Friday, 8:30 a.m. to 4:00 p.m. ET.

Each claimant/beneficiary is required to complete his or her own form. Claim numbers are typically provided to claimants within three to five business days.

To obtain an answer to a federal benefits question, NARFE members should call 800-456-8410 and select option 2 for the Federal Benefits Institute; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.

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