Re: Lump Sum payment

Since many of us are now under the National Security Personnel System - suggest you consider that in your response. It is my understanding that we don't receive the payout if we retire before the beginning of the first full pay period in January SO we decide whether to have a larger use or lose balance for payout or increased salary for the leave payout.

Re: Lump Sum payment

HR Specialist,
That is not what I understood was the problem with NSPS. The problem is with pay out that is bonus. Most people receive bonuses soon after the paperwork is processed. It is my understanding that NSPS bonuses are all paid in February of the next year after the award decision. This means that if you retire in Dec., you won't get your bonus. If you retire in Feb., you lose your prior years loose or use balance of AL.

So, as opposed to the non-DOD workforce, your pay out is reduced in one of the other way. Usually the bonus is less than the one year of unused AL but you need to consider your own case. For example someone formerly GS-13, Step 10 in DC might get an 8% paid out entirely as a bonus since they are ineligible for pay raises if the band doesn't change. That would be over $8,000 dollars or about 160 hours worth of pay. If you use half of your AL in that last year and earn 8 hr. AL per pay period, you have 104 hours of pay out for AL. This example - Feb. retire.

Re: Lump Sum payment

Scientist DoD wrote "For example someone formerly GS-13, Step 10 in DC might get an 8% paid out entirely as a bonus since they are ineligible for pay raises if the band doesn't change. That would be over $8,000 dollars or about 160 hours worth of pay."

This is extremely unlikely to happen, though. In my agency, in order to get the full pay increase for 2008, we had to achieve a 4 rating. I am the equivalent of a GS-13, step 10, and my 4 rating got me enough money to keep me at the top of the YA-2 pay band and a bonus of $2,700. I don't know anyone who got anything close to $8,000.

NSPS is a joke. I am glad I am eligible to retire now.

Re: This article

I think the article made clear that many people choose to retire toward the end of the year and those are the best dates for many or most people. Did you want one choice a week?

Re: Best time to retire.

Can you cite a reference from IRS that explains this? I thought, for example, that the lump-sum annual leave payment counted as earned income and could therefore be used to make a Roth IRA deposit if one retired early in a pay year.

Re: Best time to retire.

Can anyone clarify something for me? Looking at the calendar, it appears that 2009 may be the last year for quite some time that I can take advantage of retiring at the beginning of a calendar year, but within the last pay period of the previous year in order to get the January increase in my leave payout. Does anyone have any insight on this? I'm one of the CSRS dinosaurs.

Re: Best time to retire.

Mr. Eligible to Retire,
I don't think they will end a leave year before New Year's Day. In the past, I have seen an occasional 27 pay period year. Which means that sometime soon they will shift it back again. 2010 will have New Year's Day on a Friday and 2011 will have Jan 1 on a Saturday. Whether or not you can retire on a holiday or Saturday, I'm not sure. But by 2012, we should have a 27 pay period year and then Jan 14 (Saturday) will be end of that leave year.

Re: Postponing annuity in FERS

You can retire (FERS) at age 60 with at least 20 years of service. There would be no penalty and you qualify for a social security supplement.

Re: Postponing annuity in FERS

If you leave before age 60, you do not get the supplement from social security. If you wait until age 60 to retire, with at least 20 years of service, you will get the supplement until you reach age 62. At age 62, you are entitled to get social security benefits.