Retirement Alert, 6/9/06

PLEASE POST

IMPORTANT NOTICE TO ALL BARGAINING UNIT EMPLOYEES!

If you have received a VSIP offer of early retirement that will pay you ($25,000) please be careful when accepting the offer.

For example:

An employee with 22 years of service at 50 years of age has received a buy-out letter for $25,000.

If elected to take the buyout then the $25,000 would net an estimate $17,000 and the employee would be penalized 8% reduction in their retirement benefits as long as they live.

VERA/VISIP is a better opportunity for those who have the age and years (example: 55 years of age with 30 years of service or employees who would be eligible to retire within a years time.)

GET YOUR RETIREMENT NUMBERS BEFORE YOU DECIDE..

The penalty occurs when the employee does not meet the age requirement (under 55) toward full retirement. FERS has a 5% deduction for each year under 55 and CSRS has a 2% deduction for each year under 55. This is FEDERAL LAW, you cannot hold the agency responsible. Early out is at the decision of the employee. The employee needs to consult with the HR people in District and if District is not knowledgeable, HQtrs staff.

Direct those concern to the following web site and it will let them know: Googles: the Search: Federal Employment Retirement Calculator. It will do it for FERS and CSRS.