Fers Opm Medical Retirement The Acceleration Principle

All FERS and CSRS Offset retirees are entitled to Social Security benefits as part of their retirement package. Gifts from the Social Security system may be available to regular CSRS employees if they have worked for an employer that contributes to Social Security before or after their CSRS job years and possibly during part-time outside work.

In 2023, the maximum annual amount that can be deducted from an employee’s salary to contribute to the Social Security trust fund is $160,200. There is no cap on the amount of money that can be deducted from a federal employee’s paycheck for Medicare, which is why the 1.45% contribution that all federal employees make is sometimes bundled in with the SS deduction.

Offset Benefit Eligibility for Federal Employees Under FERS and CSRS

A worker must have earned enough Social Security work credit to become eligible for retirement, survivor’s, and disability insurance benefits. Quarters of Social Security coverage are used to calculate employment credits. You’ll need 40 credits if your birth year is 1930 or later.

To get disability insurance benefits, workers must also pass an additional insured status test. Employees who become disabled after age 31 must have worked under Social Security for at least five of the last ten years preceding the commencement of disability.

If you are 24-31, you must have worked at least between turning 21 and the time of your disability. If you are under 24, you must have worked at least 18 months in the three years before your disability.

Benefits eligibility for fully insured workers begins at age 62. However, there is a permanent reduction in payments for each month of entitlement before the full-benefit retirement age. Meanwhile, as the full retirement age rises, the reduction in benefits for starting to draw at age 62 rises as well  retirees born in the 1960s and later will see a cut of around 30 percent.

When injured workers become disabled, they are entitled to their complete benefits package without regard to age restrictions. A person is considered disabled under Social Security legislation if they have a physical or mental impairment that prevents them from working full-time and is expected to endure for at least 12 months or cause death.

When people talk about engaging in “major gainful activity,” they mean doing work that is both mentally and physically taxing but ultimately rewarding, with the goal of financial gain. This requirement is greater than the one for disability retirement under FERS.

When calculating the Social Security retirement or disability benefit, a different formula is typically used for employees who receive an annuity based on CSRS service, including those who transfer to FERS from CSRS.

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Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.