Working past max retirement, still paying into it?


I have worked for the government 5 years past the max retirement(41 yrs, 11 mo) and have paid into
retirement all those 5 years. Will I be able to get that money back upon retirement?

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Posted by (Questions: 1, Answers: 0)
Asked on March 29, 2019 9:20 pm
Private answer

I will make the assumption that you are CSRS and then the answer is yes, with interest, as long as you do not have deposit or redeposit service.
The earned basic annuity of any CSRS employee may not exceed 80 percent of the employee’s high-3 average pay however, all unused sick leave will be added which means you could collect higher than 80%. Let’s say you had a year of sick leave on the books and no deposit or redeposit service, in that case, you would collect 82% of your high-3 average salary.
Retirement deductions withheld from the first of the month after you have performed sufficient service to entitle you to the maximum annuity, plus 3 percent interest compounded annually to the date of retirement, are automatically applied toward any deposit due for civilian non-deduction service, and/or redeposit due for civilian refunded service that ended on or after March 1, 1991. OPM then refunds any balance with the initial annuity payment. At that time, you will advised by letter of the amount of additional annuity the excess deductions and interest would purchase. If you return the excess deductions and interest to OPM, this amount is treated as voluntary contributions and the annuity is recomputed accordingly.
Your excess deductions are not automatically applied toward a redeposit due for civilian refunded service that ended prior to March 1, 1991. An actuarial reduction woud be applied to the maximum annuity. However, if you elect to purchase an additional annuity with the excess deductions, the redeposit has to be paid in full.

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Posted by (Questions: 0, Answers: 594)
Answered on March 30, 2019 2:22 pm