Voluntary Early Retirement 2018

voluntary early retirement 2018 guide for federal employees - ver questions and answersQuestion 1. What is Voluntary Early Retirement (VER) Authority (VERA)?
Answer Voluntary Early Retirement (VER), or “Early Out,” as it is commonly referred to, is a
strictly voluntary option that allows eligible employees to retire early by authority granted
by the Office of Personnel Management (OPM).

Question 2. Where can I find the most current VER information?
Answer From a postal computer (Blue – postal intranet):
https://liteblue.usps.gov/humanresources/retirement/home.shtml
From a non-postal computer (LiteBlue): www.liteblue.usps.gov

Question 3. Who is eligible for a VER?
Answer Employees covered by the Civil Service Retirement System (CSRS) and employees
covered by the Federal Employees Retirement System (FERS) are eligible if they meet
the following requirements:
(1) At least 50 years of age with at least 20 years of service, or any age with at least 25
years of service, and
(2) At least five (5) years MUST be creditable civilian service, not military service.
Employees may use military service to meet the balance of service required for
eligibility.
(3) Hold a position covered by the VER offer.
(4) Have been on the Postal Service’s rolls at least 31 days before the Postal Service’s
request to OPM for the applicable VER authority, and have remained continuously
on the Postal Service’s rolls without a break in service since that time.
(5) Employees who are in receipt of a final decision of removal based on misconduct or
unacceptable performance on or before the VER effective date are not eligible for
VER.
CSRS employees must have been employed under CSRS for at least one (1) year out of
the last two (2) years, but the service need not be continuous.

Question 4. Are all employees who meet the above requirements eligible for the VER?
Answer No. At the time of the VER offer, the specific category or categories of employees who
are covered by the VER offer if they meet the other eligibility requirements will be
announced. The Postal Service can only offer VER opportunities to the category or
categories of employees authorized by OPM.

Question 5. What is the major difference between VER and Optional Voluntary Retirement?
Answer The age and service requirements are less under VER than under optional retirement.
Early retirement may carry a penalty in the annuity computation.

Question 6. If I meet the service requirement with 20 years of service, but not the age
requirement, would my 50th birthday be the earliest date I could retire?
Answer Yes, provided your birthday is within the VER offer window. For retirement purposes an
employee legally meets the age requirement the day before a birthday. For example, an
employee meeting the service requirement who will be 50 years old on October 4 would
be eligible to retire if the last date of the VER offer is October 3.

Question 7. Is there a time period for retiring under the VER?
Answer Yes, each VER offer has a ‘window’ during which applications will be accepted and one
or more retirement effective dates. The window dates and retirement effective date(s) will
be announced at the time of the VER offer.

Question 8. Can I cancel an application I submitted for disability retirement and take advantage
of this VER offer now that I meet the eligibility requirements?
Answer Yes, an application for disability retirement may be withdrawn at any time prior to
approval from OPM. Also, applications may be submitted for more than one retirement
for which you qualify (discontinued service, MRA, etc.), and OPM will review each
separately.

Question 9. Can I use my accumulated annual or sick leave balance to meet the years of
service requirement?
Answer No, neither your annual nor your sick leave balance can be used to meet eligibility
requirements.

Question 10. Am I eligible for the VER as a FERS covered employee who meets Minimum
Retirement Age (MRA) with at least 10 years of service, but less than 20 years?
Answer No, 20 years of service is the minimum to qualify for the VER. (You are eligible to retire
under a FERS MRA + 10 optional retirement with a reduced annuity.)

Question 11. How much money can I expect to receive in retirement on a monthly basis?
Answer If you are offered a VER opportunity, you will receive an estimate of the annuity you will
receive as of the effective date for retirements processed under your offer.

Question 12. Will my annuity be reduced if I take the VER?
Answer CSRS/CSRS Offset Covered Employees: If you are under age 55, your annuity will be
computed using a voluntary optional retirement annuity calculation based on total
creditable years and months of service and average high-3 salary. Then, your annuity will
be reduced at the rate of two percent (2%) for each year (or by 1/6th of one (1%) percent
for each full month) that you are under age 55. This reduction is permanent — your
annuity is not recomputed when you reach age 55.
FERS Covered Employees with a Frozen CSRS Component: The portion of your
annuity based on a benefit that you accrued and retain under CSRS frozen service is
subject to the reduction mentioned above for CSRS/CSRS Offset covered employees.
FERS Covered Employees without a CSRS Component: No reduction.

Question 13. How is the high-3 average salary determined in computing an annuity?
Answer Your high-3 average salary is the highest figure obtained by averaging your basic salary
during any three (3) consecutive years of service, with each rate weighted by the length
of time it was in effect. Basic salary includes higher-level pay and cost-of-living
adjustments (COLAs), but does not include territorial cost of living allowance (TCOLA),
overtime, bonuses, night differential, premium pay, military pay, lump sum terminal
leave, or annual leave exchange payments, etc. In most cases, the last three (3) years of
basic salary are the high-3 years. If you have a period of higher basic salary prior to the
last three (3) years of employment, OPM will compute your annuity based on that earlier
period, even if that period of service was with another federal agency. The high-3
calculation for part-time employees may differ; such employees may request a NARECS
annuity estimate through the HR Share Service Center and the high-3 amount will be
shown on it.

Question 14. When will my annuity start?
Answer CSRS voluntary retirement annuities commence the first day of the month after the
employee separates from service and meets the age and service requirements. Under
the three-day rule, annuities of employees who serve in a pay status for three (3) days
(or fewer) in the month of retirement commence on the day after separation or the day
after pay ceases and the age and service requirements are met. For example, if your
date of retirement is October 31st, your annuity commences on November 1st, or if your
date of retirement is March 3rd your annuity commences on March 4th.
FERS voluntary retirement annuities commence the first day of the month after
separation for retirement. Unlike CSRS, there is no special provision for employees who
serve three days or less in the month of retirement or any provision allowing a voluntary
retirement annuity to begin on the day after the last day of pay. For example, if your date
of retirement is October 31st, your annuity commences on November 1st, or if your date
of retirement is March 3rd, your annuity commences on April 1st.
A discontinued service annuity commences on the day after separation.
Deferred annuities commence on the former employee’s 62nd birthday. FERS deferred
annuities based on having at least 10 years of service and reaching their Minimum
Retirement Age (MRA) begin after reaching the MRA.

Question 15. How can I get credit for time worked in a position for which no retirement
contributions were deducted from my pay?
Answer CSRS/CSRS Offset Covered Employees: If the service was performed before October
1, 1982, it is creditable in full toward retirement eligibility and in computing your annuity if
you make a deposit. However, if you don’t make a deposit for this service, your annuity
will be reduced by ten percent (10%) of the amount of the unpaid deposit, plus interest. If
the service was performed on or after October 1, 1982, it will be used to determine
retirement eligibility, but is not creditable for annuity computation purposes unless you
make a deposit, with interest, for this service.
FERS Covered Employees with a Frozen CSRS Component: The portion of your
annuity based on a benefit that you accrued and retain under CSRS frozen service is
subject to the creditability rules and calculations as mentioned above for CSRS/CSRS
Offset covered employees.
FERS Covered Employees without a CSRS Component: If the service was performed
before January 1, 1989, it will not count toward retirement eligibility or in computing your
annuity unless a deposit, with interest, is made before the final adjudication of your
retirement application. If the service was performed on or after January 1, 1989, it is
not creditable under FERS, and a deposit cannot be made for this service.

Question 16. What impact will a previous withdrawal of my retirement contributions have on my
retirement annuity?
Answer CSRS/CSRS Offset Covered Employees: If you are a CSRS employee and you
previously worked for the Postal Service or another federal agency where retirement
deductions were withheld from your pay and later refunded to you, you can apply to
make a redeposit of those funds for that period of service. CSRS covered employees
whose refunded service ended before March 1, 1991, will receive retirement eligibility
and annuity computation credit for the length of the refunded service. However, unless
the redeposit is paid in full, plus interest, your annuity will be actuarially reduced,
based on your age and the amount of redeposit. If the refunded service ended on or
after March 1, 1991, you will receive credit for eligibility but you must pay the redeposit in
full, plus interest, to receive credit for the service in the annuity computation. [Note that
the March 1, 1991, date applies to non-disability annuitants whose separation from
service occurs on or after October 28, 2009; otherwise, the refunded service must have
occurred prior to October 1, 1990].
FERS Covered Employees with a Frozen CSRS Component: The portion of your
annuity based on a benefit that you have accrued and retain under CSRS frozen service
is subject to the creditability rules and calculations as mentioned above for CSRS/CSRS
Offset covered employees. For the portion of your annuity based on a benefit that you
accrued under FERS, please see the next paragraph.
FERS Covered Employees without a Frozen CSRS Component: The 2009 National
Defense Authorization Act (NDAA) changed the rule that FERS participants who took
refunds of their retirement contributions irrevocably lost service credit for the period
covered by the refund. Now, if you had a prior period of service covered by FERS and
withdrew your FERS retirement contributions, you have the opportunity to make a
redeposit of the amount refunded, plus interest, and receive credit for the refunded period
of service under FERS. Retirement regulations have been announced that give you
credit for determining your eligibility to retire even if you do not make a redeposit.
However, if the redeposit is not paid in full, plus interest, no credit is allowed for
calculating your annuity.

Question 17. If I take the VER, will I be eligible to withdraw my retirement contributions and take
a reduced annuity?
Answer No. The Alternative Form of Annuity/Lump Sum option is presently available to only those
employees documented to have a life-threatening affliction, and who separate with
immediate entitlement to an annuity, other than a disability annuity.

[NOTE: Questions 18 through 24 apply to FERS Covered Employees ONLY]

Question 18. What is the FERS Special Retirement Supplement?
Answer FERS Employees Only: It is an annuity supplement only for FERS covered employees
paid by the U.S. Office of Personnel Management (OPM – a separate government
agency that administers the federal insurance and retirement plans), which estimates the
Social Security benefit earned by your FERS covered years of service. It is paid until you
become eligible for a Social Security benefit at age 62. However, under VER, this
supplement is payable only if you have reached your MRA – your earliest optional
retirement age, which ranges from 55 to 57, depending upon your year of birth. If you are
retiring at less than your MRA, the supplement will not be paid until you reach your MRA.
FERS employees are eligible for the FERS Special Retirement Supplement if they retire:
 at MRA with 30 years of service;
 at age 60 with 20 years of service; or
 at age 50 with 20 years of service or any age with 25 years of service in an early
voluntary retirement (in a RIF, major reorganization, or transfer of function) or in
an involuntary (discontinued service) retirement. This supplement is payable
only if you have reached your MRA. If you are separating at less that MRA the
supplement will not be paid until you reach your MRA. If you are eligible for the
supplement it cannot be paid until your retirement application has been
adjudicated by the U.S. Office of Personnel Management (OPM—a separate
government agency that administers the federal insurance and retirement plans).

Question 19. Can I still receive the Special Retirement Supplement as a FERS covered employee
with a CSRS component?
Answer FERS Covered Employees Only: Yes, if you had one (1) full calendar year of service
subject to FERS and otherwise meet the requirements.

Question 20. How is the Special Retirement Supplement computed?
Answer FERS Covered Employees Only: The supplement is computed as if you were age 62
and eligible for a Social Security benefit when the supplement begins. By law, OPM first
estimates what your full career (40 years) Social Security benefit would be. Then it
calculates the amount of your civilian service under FERS and reduces the estimated full
career Social Security benefit accordingly. For example, if your estimated full career
Social Security benefit is $1,000 monthly and you have worked 30 years under FERS,
OPM will divide 30 by 40 (0.75) and multiply ($1,000 x 0.75 = $750 monthly). The result
would be your Special Retirement Supplement, before any reductions.

Question 21. Do salary or wages earned after I retire affect the Supplement?
Answer FERS Covered Employees Only: Yes. Your Special Retirement Supplement, like Social
Security benefits, is subject to an earnings test. It is reduced if you earn more than the
exempt amount of earnings (determined each year by Social Security) in the immediately
preceding year. Under OPM rules, the earnings history does not include certain monies
you may receive, and these amounts are not included in the earnings test:
 earnings during the year in which an employee separates for an immediate
retirement,
 pensions or annuities paid as retirement income, including a FERS annuity,
 your terminal annual leave payment, or
 a separation incentive.

Question 22. Can my FERS basic benefit also be reduced because of earnings over the earnings
test limit?
Answer FERS Covered Employees Only: No. Your FERS basic benefit cannot be reduced
because of earnings over the earnings test limit.

Question 23. How long will I continue to receive the Special Retirement Supplement?
Answer FERS Covered Employees Only: The Special Retirement Supplement will continue until
the earlier of (1) the last day of the month before the first month for which you would be
entitled to Social Security benefits, or (2) the last day of the month in which you reach
age 62.

Question 24. Can I continue to get the Special Retirement Supplement after age 62 if I’m not
eligible or I don’t apply for Social Security benefits?
Answer FERS Covered Employees Only: The supplement ends at age 62, regardless of
whether or not you receive benefits from Social Security.

[NOTE: End of questions that apply to FERS Covered Employees ONLY]
[NOTE: The following questions apply to both FERS and CSRS Covered Employees]

Question 25. How can I receive credit for military service if I’m receiving military retired pay?
Answer To receive credit, you must waive your retired pay and you must make a post-1956
deposit, unless your retirement is based on exception criteria. Contact the Human
Resources Shared Service Center (HRSSC) at 1-877-477-3273, option 5, TDD/TTY 1-
866-260-7507 if you were injured in combat or in the line of duty.

Question 26. When should I make my Post 1956 military deposit?
Answer Completed deposits plus applicable interest are required before retirement; however, you
may initiate this payment while completing the retirement application package.
If you currently have a military deposit in progress through payroll deductions or periodic
lump sum payments, contact the HRSSC at 1-877-477-3273, option 5, TDD/TTY 1-866-
260-7507 to determine the remaining balance of your military deposit. For more
information related to Post-1956 military deposits, access the Retirement Seminar Online
at www.liteblue.usps.gov, My HR tab, and enter “Retirement” in the search My HR box.

Question 27. Where can I find more information about the VER and retirement in general?
Answer If you are eligible for retirement under the VER you will receive further information from
the HRSSC, which is your source for retirement information while you are an employee.
To learn more about retirement, the U.S. Office of Personnel Management (OPM – a
separate government agency that administers federal retirement plans) provides
extensive information. Do NOT call OPM. They cannot respond to questions from
employees. Refer to OPMs web site at www.opm.gov/retire

CSRS VOLUNTARY CONTRIBUTIONS
Question 28. Will CSRS voluntary contributions I previously made be refunded to me?
Answer If you have elected to make CSRS Voluntary Contributions, there will be no automatic
refund, but you may apply for a refund (including a rollover to a traditional Individual
Retirement Account [IRA], a Roth IRA, or an eligible employer plan) any time before you
receive an annuity based on these contributions. Otherwise, your CSRS annuity will be
increased according to the Voluntary Contribution regulations.

SOCIAL SECURITY
Question 29. How would Voluntary Early Retirement affect my Social Security benefits?
Answer In terms of Social Security, taking a VER is the same as Optional Retirement. If you
qualify for Social Security, you may receive full benefits beginning between age 65 and
67, depending on your date of birth. You may apply to receive actuarially reduced
benefits as early as age 62.

Question 30. Will my Social Security benefit be reduced under the Windfall Elimination Provision
because I receive a CSRS annuity?
Answer Your Social Security benefit may be reduced under the Windfall Elimination Provision
(WEP). WEP lowers the percentages used to compute benefits for all workers who have
less than 30 years of Social Security-covered employment and who have earned an
annuity from employment not covered by Social Security, such as a CSRS annuity. The
Social Security Administration publishes information on this provision on its web site:
http://www.ssa.gov/gpo-wep/.

Question 31. What is the Government Pension Offset?
Answer This provision in the Social Security law affects the Social Security benefit of a CSRS
retiree who did not pay Social Security taxes, but expects to receive a Social Security
benefit as a spouse or surviving spouse. This provision does NOT affect CSRS Offset
and FERS covered annuitants. The Social Security Administration publishes information
on this provision on its web site: http://www.ssa.gov/gpo-wep/.

Question 32. How do I obtain more information about Social Security?
Answer Social Security offers several pamphlets, books and fact sheets. For more information or
to obtain free publications, contact your local Social Security office, or call 1-800-772-
1213, or refer to the web site: http://www.ssa.gov.

MEDICARE
Question 33. Am I eligible for Medicare?
Answer Generally, you are eligible for Medicare if you or your spouse worked for at least 10 years
in Medicare-covered employment and you are age 65 or older and a citizen or permanent
resident of the United States.

Question 34. How do I obtain more information about Medicare?
Answer Call 1-800-MEDICARE (1-800-633-4227), or refer to the web site: www.medicare.gov

FEDERAL EMPLOYEES HEALTH BENEFITS (FEHB)
Question 35. What will happen to my health benefits?
Answer Your current health benefits coverage will transfer into retirement provided you meet the
eligibility requirements of:
(1) retiring on an immediate annuity, and
(2) continuous coverage in the FEHB program for the five (5) years of service
immediately preceding the date your annuity starts or since your first opportunity to enroll
(if less than five years).
For employees who do not qualify under the preceding requirements, the U.S. Office of
Personnel Management (OPMa separate government agency that administers the
federal insurance and retirement plans) has the authority to grant pre-approved waivers
to employees who have been:
 Covered under the FEHB program continuously since the beginning date of
the OPM-approved VER; and
 Retire during the OPM-approved VER period; and
 Take the VER offering.
If you qualify for a pre-approved waiver, the HR Shared Service Center will include
the pre-approved waiver with your retirement application that is sent to OPM.

Question 36. What will happen to my health benefits if I don’t meet the eligibility requirements
described in the preceding question?
Answer If you do not qualify under the eligibility requirements to transfer your health benefits into
retirement as described in the preceding answer, and you do not qualify to receive a preapproved
waiver as described above, OPM has the authority to grant waivers to
employees who fail to satisfy the five-year or first opportunity requirement due to
exceptional circumstances. If you request a waiver, you must provide OPM with
evidence that:
 you had intended to have FEHB coverage as a retiree;
 the circumstances that prevented you from meeting the 5-year or first opportunity
requirement were essentially outside your control; and
 you acted reasonably to protect your right to continue FEHB coverage into
retirement. (This includes reading and acting on information provided and
requesting information if none is given automatically.)
If OPM does not approve your waiver request, you have two options, as follows:
 Convert to a nongroup contract (individual policy) with the carrier of the plan you
are enrolled in at the time of your separation.
 Elect 18 months of coverage under the Temporary Continuation of Coverage
(TCC) provisions of the FEHB Program.
The HR Shared Service Center will notify you that your group health insurance coverage
will terminate and provide information about continuing your health insurance coverage
beyond the 31-day temporary extension.

Question 37. Will my health benefits costs increase if they transfer into retirement?
Answer Bargaining Employees: Your premium payment will increase to the level paid by all
other federal annuitants (and federal employees) rather than receiving the more favorable
Postal Service employer health benefits contribution. This means the same health plan
may be noticeably more costly for an annuitant than for a Postal Service employee.
As an annuitant, you would pay for health coverage through monthly withholding from
your annuity, instead of paying through biweekly withholding from your paycheck (12
payments annually instead of 26 payments annually). Of course, each payment is higher
when you pay on a monthly basis.
Non-Bargaining Employees: No, you will pay the same premium as you paid while you
were an employee. However, annuitants are paid on a monthly basis so you will pay them
at the monthly rate.
Tax regulations do not permit you to receive the tax break as an annuitant that you
receive as an employee under the pretax payment of health insurance premiums
provided by the Postal Service.

Question 38. Will coverage I have under TRICARE/CHAMPUS count toward the FEHB five (5)
year or first opportunity requirement?
Answer Yes, as long as you are covered under an FEHB enrollment at the time of retirement. In
addition, you must have enrolled in the FEHB program within 60 days after you lost
coverage under TRICARE/CHAMPUS* for it to be considered part of the continuous
FEHB coverage.
*CHAMPUS is the former health care program established to provide health coverage for
active duty family members and retirees and their family members. TRICARE replaced
CHAMPUS in 1994. Benefits covered under CHAMPUS are now covered under
TRICARE Standard.

Question 39. What happens if I cancel my health benefits enrollment when I retire?
Answer If you cancel your FEHB enrollment as an annuitant, you will NEVER be able to reenroll,
unless you become reemployed in a position that conveys coverage.

Question 40. If I cancel my FEHB enrollment to be under my spouse’s FEHB enrollment, will I be
able to re-enroll under my own coverage at a later date?
Answer Yes. As long as you are continuously covered under an FEHB enrollment, you remain
eligible to make any of the same enrollment elections/changes that an active employee
would be eligible to make.

Question 41. Will a period of health benefits termination due to leave without pay (LWOP)
greater than 12 months count as a break in the continuous coverage necessary for
continuing FEHB coverage into retirement?
Answer No. The termination of your health benefits due to 365 days in LWOP status is not
considered a break in the continuous coverage necessary for continuing FEHB coverage
into retirement. However, the period during which the termination is in effect does not
count toward satisfying the required five (5) years of continuous coverage. In addition, to
meet eligibility requirements, you must have re-enrolled within 60 days of returning to pay
status.

Question 42. Where can I find more information on health insurance in retirement?
Answer If you are eligible for VER, you will receive further information from the HRSSC, which is
your source for such information while you are an employee. To learn more about health
insurance during retirement, the U.S. Office of Personnel Management (OPMa
separate government agency that administers the federal health insurance and retirement
plans) provides extensive information. Do NOT call OPM. They cannot respond to
questions from employees. Refer to OPMs website at www.opm.gov/insure/health.

Question 43 If I am not eligible to keep my FEHB for any reason, what are the options for
continuing my health insurance coverage?
Answer You have two options, as follows:
 Convert to a nongroup contract (individual policy) with the carrier of the plan you
are enrolled in at the time of your separation.
 Elect 18 months of coverage under the Temporary Continuation of Coverage
(TCC) provisions of the FEHB Program.
The HR Shared Service Center will notify you that your group health insurance coverage
will terminate and provide information about continuing your health insurance coverage
beyond the 31-day temporary extension.
The 31-day temporary extension of coverage begins the day after your regular coverage
ends. However, if you are confined to a hospital on the 31st day of the temporary
extension, your benefits will continue during confinement up to a maximum of 60 more
days, unless you convert to a nongroup (individual) policy. These temporary extensions
of coverage are without cost to you, and they apply to all covered family members.

Question 44. How do I apply for an individual policy?
Answer When your enrollment terminates, the Postal Service must give you a notice of your right
to convert to an individual policy on the SF 2810, Notice of Change in Health Benefits
Enrollment . You should be provided with this notice immediately upon your enrollment
termination, but no later than 60 days from the termination date.
To apply for conversion, complete the back of your copy of the SF 2810 and take or mail
it to the carrier of your plan within 31 days from the date of the HR Shared Service’s
notice to you (part H of SF 2810), but no later than 91 days from the date your enrollment
terminates (Part A, item 8 of SF 2810).

Question 45. How do I elect Temporary Continuation of Coverage (TCC)?
Answer You must complete and submit SF 2809, Health Benefits Election Form, to the HR
Shared Service Center within 60 days of the following, whichever is later:
 The date of separation.
 The date you received notification from the HR Shared Service Center about
options available for continuing your health insurance coverage.

Question 46. What plan choices do I have under Temporary Continuation of Coverage (TCC)?
Answer You may choose any FEHB plan, option, or type of coverage that you are eligible to
select. A list of participating plans and corresponding monthly premium rates is provided
in the RI 70-5, Guide to Federal Benefits for TCC and Former Spouse Enrollees, which is
available from the HR Shared Service Center or online at
http://www.opm.gov/insure/health/planinfo/guides/index.asp. If you elect TCC, you will be
responsible for the full premium cost plus a two percent (2%) administrative surcharge.

Question 47. If I elect one of the options available for continuing my health insurance coverage,
when is coverage effective?
Answer The effective date of coverage for both options is the day after the expiration of the 31-
day temporary extension. When TCC expires after 18 months, you will be entitled to a
free 31-day temporary extension of coverage for the purposes of converting to a
nongroup contract (individual policy) with the plan.

Question 48. Where can I find more information on health insurance?
Answer For additional information, you may go online at http://www.opm.gov/insure/health/ or
contact the HR Shared Service Center at 1-877-477-3273, option 5; TDD/TTY 1-866-260-
7507.

FEDERAL EMPLOYEES DENTAL AND VISION INSURANCE PROGRAM
Question 49. Can I continue my dental and/or vision insurance (FEDVIP) coverage into
retirement?
Answer There is no 5 year requirement for continuing your dental and/or vision insurance into
retirement under the Federal Employees Dental and Vision Insurance Program (FEDVIP).
If you have FEDVIP coverage when you retire, it will automatically continue into
retirement, no matter how long you have had the coverage.
To be eligible to continue FEDVIP into retirement you must have retired with an
immediate annuity (A FERS Minimum Retirement Age plus 10 annuity, postponed, counts
as an immediate annuity.).

Question 50. Will my premiums change when I retire?
Answer No, your premiums or benefits will not change after retirement. Your premiums, however,
will be post-tax and will be withheld from your monthly annuity. Pre-tax premiums, which
reduce your cost, are available only to employees, not to annuitants, survivor annuitants
or compensationers.

Question 51. Do I need to contact BENEFEDS to let them know that I have retired and FEDVIP
premiums need to come out of my annuity payments instead of my Postal Service
pay check?
Answer You are not required to contact BENEFEDS. However, you can speed up the process of
having premiums withheld from your annuity (so you have to catch up on fewer
premiums) by contacting BENEFEDS.
In most cases, changing from payroll deduction to annuity deduction is automatic, but
may take one to three months to occur because premiums cannot be deducted from your
annuity while you are receiving “special” or “interim” pay. Once your annuity is finalized,
premium deductions will begin, assuming your annuity is sufficient to cover the premiums.
If you miss one or more premium payments before your annuity is final, BENEFEDS may
send you a direct bill which you must pay. If you do not pay the bills, your coverage may
be cancelled.

Question 52. If I’m not enrolled now, and I retire, can I enroll during retirement?
Answer Yes, you can enroll during an Open Season as an annuitant.

Question 53. What happens to my dental and/or vision insurance (FEDVIP) if I am involuntarily
separated by the RIF and I’m not eligible for retirement with an immediate annuity?
Answer You cannot enroll or continue FEDVIP enrollment after you leave the Postal Service.
There is no 31-day temporary extension of coverage or opportunity to convert to private
coverage. Your coverage ends on the last day of the pay period in which you separate. If
you are only eligible for deferred retirement (this means you cannot receive a retirement
annuity immediately, but you can receive an annuity at a future date) you cannot enroll in
or continue FEDVIP.

Question 54. How do I contact BENEFEDS and where can I find additional information about
FEDVIP?
Answer You can find additional information at https://www.benefeds.com or by calling 1-877-888-
FEDS (3337), TTY 1-877-889-5680.

FEDERAL EMPLOYEES’ GROUP LIFE INSURANCE (FEGLI)
Question 55. What will happen to my life insurance?
Answer You are eligible to continue your current life insurance coverage into retirement provided
you meet the eligibility requirements of:
(1) Retiring on an immediate annuity, and
(2) Continuous coverage of each election in the FEGLI program for the five (5) years of
service immediately preceding retirement or since your first opportunity to enroll if
less than five (5) years), and
(3) You did not convert to an individual life insurance policy.
Accidental death and dismemberment coverage ends when your employment ends.
After you make your life insurance election, you may have opportunities to reduce your
coverage, but not to increase it. Employees who assigned their insurance or have taken
living benefits may not reduce or cancel their coverage.

Question 56. Will my premium costs increase?
Answer Basic insurance: If you are eligible and continue your coverage, you will pay premiums,
which will be withheld from your annuity, until after you turn 65. Then, if you elected the
75% Reduction, you will not pay any more premiums. If you elected 50% Reduction or
No Reduction coverage, you will no longer pay your “regular” premiums for Basic
insurance; however, you will continue to pay the extra premiums, You may compute the
cost of your premiums on OPM’s FEGLI Calculator at
http://www.opm.gov/calculator/worksheet.asp.
Optional insurance: The cost of optional insurance depends on your age; see the Rates
on the OPM website for information on what coverage costs enrollees. You may compute
the cost of your premiums on OPM’s FEGLI Calculator at
http://www.opm.gov/calculator/worksheet.asp. When you reach age 65 or if you are
age 65 or older when you retire, whether you continue to pay premiums depends on what
reduction schedule you have chosen. Option A is free after you reach age 65; however it
then starts to reduce at the rate of two percent (2%) per month until it reaches 25 percent
(25%) of the pre-retirement amount or $2,500.00. Option B and Option C are free if you
choose the Full Reduction, but they begin to reduce at age 65 by 2 percent (2%) per
month until they reach zero. If you elect No Reduction for your Option B and/or Option C
coverage, then you continue to pay the premiums, which may increase based on your
age group, and coverage continues unreduced until you die or change to Full Reduction.
NOTE: Rates may change in the future.
Employees who assigned their insurance or have taken living benefits may not reduce or
cancel their coverage.

Question 57. Will the life insurance coverage amounts change?
Answer Basic insurance: If you are eligible and continue your coverage, you elect a 75%
Reduction, 50% Reduction or No Reduction in coverage. If you elect No Reduction, your
coverage stays the same; otherwise, it begins to reduce when you turn 65.
Optional insurance: If you are eligible and continue your coverage:
 Option A (Standard) continues until you turn 65, when it begins to reduce at
the rate of two percent (2%) per month until it reaches 25 percent (25%) of
the pre-retirement amount or $2,500.00.
 You elect how many multiples of Option B (Additional) and/or Option C
(Family) you wish to continue and whether you want a Full Reduction or No
Reduction for your Option B and/or Option C coverage. With No Reduction,
your coverage stays the same; otherwise, it begins to reduce when you turn
65.
Employees who assigned their insurance or have taken living benefits may not reduce or
cancel their coverage.

Question 58. Will the SF 2823, Designation of Beneficiary form filed in my electronic Official
Personnel Folder (eOPF) remain valid after I retire?
Answer Yes. Any valid designation on file in your eOPF will remain valid unless your annuity
terminates or you change or cancel the designation. Changes or cancellations after
retirement must be submitted directly to the U.S. Office of Personnel Management
(OPM). You can review Standard Forms 2823 (if applicable) in your eOPF through
LiteBlue at www.liteblue.usps.gov

Question 59. Where can I find more information on life insurance in retirement?
Answer If you are eligible for VER, you will receive further information from the HRSSC, which is
your source for such information while you are an employee. To learn more about life
insurance during retirement, the U.S. Office of Personnel Management (OPM – a
separate government agency that administers the federal life insurance and retirement
plans) provides extensive information. Do NOT call OPM. They cannot respond to
questions from employees. Refer to the OPM website: www.opm.gov/insure/life.
You may compute the cost of your premiums on OPMs FEGLI Calculator at
https://www.opm.gov/retirement-services/calculators/fegli-calculator/

Question 60. If I take the VER, I will not meet the five (5) year requirement to continue my FEGLI
optional coverage. Can I convert this coverage to an individual policy?
Answer Yes. After you are separated, the HR Shared Service Center issues SF 2819, Notice of
Conversion Privilege, Federal Employee’s Group Life Insurance Program. This notice
advises that your group life insurance coverage will terminate and gives you information
about your right to convert to an individual direct-pay policy. However, if you have
assigned your life insurance coverage to another party, only the assignee (or assignees)
may convert the insurance coverage.

Question 61. How do I convert my life insurance to a nongroup contract?
Answer If you are eligible, complete the appropriate eligibility statement on SF 2819, Notice of
Conversion Privilege, Federal Employees’ Group Life Insurance Program, and mail it to
the following address:
By regular mail:
OFEGLI
P.O. Box 8149
Long Island City, NY 11101-8149
You must mail your eligibility statement within:
 31 days after you received notification from the HR Shared Service Center about
your right to convert.
 60 days after the date of the terminating event, whichever is earlier
Note: An individual policy will not include disability or accidental death or dismemberment
benefits.

Question 62. How much will a nongroup life insurance contract cost?
Answer The premiums for a nongroup life insurance contract will be determined by the type and
amount of the coverage and your age and class of risk on the day following termination of
your group coverage. You will be responsible for the total premium cost of the nongroup
life insurance contract.
Question 63. If I elect to convert to a nongroup life insurance contract, when will coverage
begin?
Answer If you elect to convert to a nongroup life insurance contract, coverage and premium
payments will be effective retroactive to the day after the 31-day temporary extension
ended. Any insurance policy purchased under the conversion privilege is a private
business transaction between you and the insurance company.

Question 64. Where can I find more information on life insurance?
Answer To learn more about life insurance refer to the OPM
website: http://www.opm.gov/insure/life.

FEDERAL LONG TERM CARE INSURANCE PROGRAM
Question 65. Can I continue my long term care insurance into retirement?
Answer Retirement will not affect your FLTCIP coverage. Your coverage will remain in effect as
long as you continue to pay premiums. If you pay your premiums through payroll
deduction, you will need to contact Long Term Care Partners at 1-800-LTCFEDS (1-800-
582-3337), TTY 1-800-843-3557 to make other billing arrangements. In most cases, you
can have your premiums deducted from your annuity once it has been finalized.

Question 66. If I’m not enrolled now, and I retire, can I enroll during retirement?
Answer Yes, you can apply at any time after you retire.

Question 67. Are deferred annuitants eligible to apply?
Answer Yes. If you separate from service with title to a deferred annuity you can apply at any
time. You do not need to wait until you are actually receiving your deferred annuity.

Question 68. What happens to my long term care insurance if I am involuntarily separated by the
RIF and I’m not eligible for retirement?
Answer This will not affect your FLTCIP coverage. Your coverage will remain in effect as long as
you continue to pay premiums. If you pay your premiums through payroll deduction, you
will need to contact Long Term Care Partners at 1-800-LTCFEDS (1-800-582-3337), TTY
1-800-843-3557 to make other billing arrangements. You may also complete the Billing
Change Form which can be found at http://www.ltcfeds.com.

Question 69. Where can I find additional information about FLTCIP?
Answer You can find additional information at http://www.ltcfeds.com or by calling Long Term
Care Partners at 1-800-582-3337, TTY 1-800-843-3557.

THRIFT SAVINGS PLAN ( “401k” Federal Savings Plan )
Question 70. If I retire under a VER, are there any special “401k” Federal Savings Plan advantages, penalties or rules?
Answer There are no differences in “401k” Federal Savings Plan provisions for retirement under VER versus separation
or optional retirement. You will have the same withdrawal choices and tax consequences
as any other separated or retired employee with the same separation or retirement date
and age.

Question 71. If I retire under a VER, can I continue to contribute to “401k” Federal Savings Plan ?
Answer No. Following retirement, you are not eligible to make additional contributions to or
borrow money from your “401k” Federal Savings Plan account. You may continue to reallocate money among the
“401k” Federal Savings Plan funds.

Question 72. If I retire under a VER, can I withdraw funds from my “401k” Federal Savings Plan ?
Answer Yes. If you retire, you will receive extensive information regarding your “401k” Federal Savings Plan withdrawal
options and also whether you may leave your money in “401k” Federal Savings Plan .

Question 73. How long will it take me to get my money from “401k” Federal Savings Plan ?
Answer Withdrawal of funds may take at least two (2) months following separation and after the
receipt of properly completed forms by “401k” Federal Savings Plan .
If you have an outstanding “401k” Federal Savings Plan loan, this would delay any “401k” Federal Savings Plan withdrawal because you
cannot withdraw funds from your “401k” Federal Savings Plan account until you have repaid your loan in full or
until your loan has been declared a taxable distribution. (ask us for an easier way to handle your loan.

Question 74. If I withdraw money from my “401k” Federal Savings Plan account, will I have to pay taxes?
Answer Yes. All persons, including those who retire under VER, will have to pay federal income
taxes on any amounts withdrawn from “401k” Federal Savings Plan . Those taxes are due on both withdrawn “401k” Federal Savings Plan
contributions and “401k” Federal Savings Plan earnings. After all, “401k” Federal Savings Plan is a tax-deferred savings plan, which
means you didn’t pay taxes when you contributed to your “401k” Federal Savings Plan account or on any
earnings in the account.
Also, if you retire before the year that you reach age 55, then any amount that you
withdraw from your “401k” Federal Savings Plan account before you reach age 59½ is subject to an early
withdrawal penalty tax of ten percent (10%). However, this penalty tax does not apply to
amounts received under certain withdrawal options, such as an annuity or rollover to an
Individual Retirement Arrangement (IRA).

Question 75. Will I forfeit my agency automatic one percent (1%) contribution or earnings on
those contributions, as a FERS covered employee, or am I vested?
Answer You will forfeit these amounts only of you have not completed a time-in-service
requirement of three (3) years for FERS employees. Once you’ve completed the three
years, you are vested. All employees eligible for VER are fully vested in their “401k” Federal Savings Plan
contributions and the earnings on those contributions, including any agency automatic or
matching contributions for FERS covered employees. All Postal Service and federal
civilian service counts toward vesting, not just service while you are a “401k” Federal Savings Plan participant.

Question 76. Will I forfeit my employee contributions, or agency matching contributions, or
earnings on those contributions, as a FERS covered employee, or am I vested?
Answer As a FERS employee, you will never forfeit these amounts. You are immediately vested
in your own contributions and in any earnings that accrue. You are also immediately
vested in Agency Matching Contributions and any earnings that accrue.

Question 77. Will I forfeit my employee contributions or earnings on those contributions as a
CSRS covered employee, or am I vested?
Answer As a CSRS employee, you will never forfeit these amounts. You are immediately vested
in your own contributions and in any earnings that accrue.

Question 78. I only have a small amount in my “401k” Federal Savings Plan account. Do I have any options concerning
these monies?
Answer If your vested account balance is less than $200 when you retire, the “401k” Federal Savings Plan will
automatically send you a check for the amount in your account. The check will be mailed
to the address in your “401k” Federal Savings Plan account record. You cannot leave this money in the “401k” Federal Savings Plan or
make any other withdrawal election.

Question 79. Does my spouse have any rights concerning how I withdraw my “401k” Federal Savings Plan funds?
Answer Your spouse does have certain rights as explained in “401k” Federal Savings Plan materials you will receive.

Question 80. What happens if I have a “401k” Federal Savings Plan loan and I retire?
Answer Your loan must be closed in one of the following ways within approximately 90 days of
the Postal Service reporting your separation to “401k” Federal Savings Plan :
 You prepay your loan in full; or
 You partially prepay your loan, and you receive a taxable distribution on the
reduced outstanding balance; or
 You receive a taxable distribution of the entire outstanding loan balance.
Note: “401k” Federal Savings Plan cannot process a withdrawal from your “401k” Federal Savings Plan account until your loan has been
closed.
The Postal Service will report to “401k” Federal Savings Plan that you have ended your Postal Service
employment. Then, “401k” Federal Savings Plan will mail you a notice with instructions. If “401k” Federal Savings Plan does not receive
payment in full from you for your loan by the required date shown on the notice, “401k” Federal Savings Plan will
declare a taxable distribution of your loan (this is reported to the IRS). If a taxable
distribution is declared on any portion of your outstanding loan amount, you may be
subject to the IRS 10 percent (10%) early withdrawal penalty tax, unless you separate or
retire or resign in the calendar year that you are age 55 or older.

Question 81. Where can I find more information about “401k” Federal Savings Plan ?
Answer If you are eligible for VER retirement, you will receive further information from the
HRSSC, which is your source for such information while you are an employee. After you
separate, you must contact the “401k” Federal Savings Plan Service Office for assistance with your “401k” Federal Savings Plan account
or if you have “401k” Federal Savings Plan questions. It is extremely important to inform the “401k” Federal Savings Plan Service Office of
any changes in your address. A change of address form is included in the withdrawal
package sent to you by the HR Shared Service Center. Contact the “401k” Federal Savings Plan Service Office
at 1-877-968-3778, TDD (for deaf and hard of hearing participants) use 1-877-847-4385;
or access the “401k” Federal Savings Plan website at www.tsp.gov or Request a Retirement Review

FLEXIBLE SPENDING ACCOUNTS (FSAFEDS)
Question 82. If I separate or retire from service, can I receive my remaining HCFSA or LEX
HCFSA balance?
Answer No, you can only be reimbursed for the expenses incurred prior to the date of separation
or retirement even if you have accelerated your allotments (FSA contributions).
You are not eligible for reimbursement even if there is still money in your Health Care
FSA (HCFSA) or Limited Expense Health Care FSA (LEX HCFSA) to pay these
expenses.

Question 83. What happens to my carryover funds if I separate from the government?
Answer You have until April 30 of the following year to submit claims towards your current year
and carryover balance. Any balances remaining for which claims were not submitted by
April 30 will be forfeited.

Question 84. Can annuitants participate in FSAFEDS?
Answer Under the IRS Code, annuitants (other than re-employed annuitants whose employment
status is full-time) cannot participate in an FSA. An FSA is a way to set aside part of your
salary — before taxes — for payment of eligible out-of-pocket expenses. An annuity is
not considered salary.

Question 85. How can I contact FSAFEDS?
Answer www.fsafeds.gov
Phone 877-FSAFEDS (372-3337)
TTY 866-353-8058

LEAVE
Question 86. If I separate from the Postal Service under a VER, what will happen to my
accumulated sick leave?
Answer No payments are made for accumulated sick leave.
The years of service used to compute the annuity are a combination of creditable
Federal Service and Postal Service + unused sick leave hours converted to creditable
service. Sick leave is used in the annuity computation, but cannot be used to meet the
service credit eligibility requirements for VER.

Question 87. If I separate from the Postal Service under a VER, what will happen to my earned
and unused annual leave?
Answer You may be eligible for a lump sum payment of accumulated annual leave carried over
from the previous year (annual leave earned and unused in the current year, including
amounts over the carryover maximum; as well as any unused donated leave), and, for
full-time and part-time regular employees, holidays that fall within the terminal leave
period. (Ref: ELM 512). Note: Annual leave in excess of the carryover limit cannot be
carried forward in the next leave year.

Question 88. If I separate from the Postal Service under a VER and have earned and unused
annual leave, will I be paid holiday leave for any holidays which occur after my
separation date but before my annual leave would be exhausted?
Answer Yes. Annual leave is spread over the appropriate number of days following your
separation date and extended one day for each postal holiday which occurs during that
time period. For example, if you have 160 hours of earned and unused annual leave and
two holidays would occur in the four weeks (40 hours per week) after the date of your
separation, you would receive terminal leave pay for 176 hours (160 hours of earned and
unused annual leave plus 16 hours of holiday leave).

Question 89. What effect will participation in the Annual Leave Exchange Program have on my
terminal leave payment?
Answer As stated in the letters notifying individuals of their eligibility to participate in the Annual
Leave Exchange Program:
“When an employee retires or separates from the Postal Service before earning sufficient
leave to cover the amount exchanged, the excess leave exchanged will be offset against
the previously accumulated leave balance when calculating the employee’s terminal
annual leave payment.”

Question 90. If I separate from the Postal Service under a VER, what will happen if I am indebted
to the Postal Service for unearned annual or advanced sick leave?
Answer If you are indebted to the Postal Service for unearned annual or advanced sick leave, you
must refund the amount paid for the unearned leave. If you do not refund the amount of
the indebtedness, deductions will be made from any funds that you are due upon your
separation.

SEVERANCE PAY
Question 91. If I separate from the Postal Service under a VER, am I entitled to severance pay?
Answer No. If you voluntarily retire from the Postal Service, you are not entitled to severance pay.

UNEMPLOYMENT COMPENSATION
Question 92. If I separate from the Postal Service under a VER, can I apply for unemployment
compensation?
Answer Yes. At the time of retirement, you will receive an SF-8, Notice to Federal Employees
About Unemployment Insurance, advising you of your right to file a claim for
unemployment compensation. While any employee who is separated may apply for
unemployment compensation, most states exclude from eligibility those applicants who
have voluntarily retired from employment. Furthermore, Federal law requires states to
reduce the weekly unemployment amount by the weekly amount of any government or
other pension, retirement, or retired pay.

 

Voluntary Early Retirement 2018 Guide for Federal Employees