Frequently Asked Questions Retirement

Use our online calculator to compute the tax free portion of your annuity. http://apps.opm.gov/tax_calc/index.cfm Read about how the tax free portion of your annuity is determined. Your retirement contributions are shown on the 1099R form we send you each January for tax filing purposes.  You can find information about computing the taxable portion of your annuity by going to IRS Publication 721 (Tax Guide to U.S. Civil Service Retirement Benefits) on the Internal Revenue Service website.  Search for Publication 721 and refer to “Part II Rules for Retirees”.  You will find detailed information for disability and non-disability retirees, along with worksheets for computing the taxable portion. If your non-disability annuity started on/after July 2, 1986, a portion of each annuity payment is taxable and a portion is considered a tax-free recovery of your contributions to the retirement fund. If you retired under the disability provision, the disability annuity you receive from CSRS or FERS is taxable as wages until you reach minimum retirement age.  Your retirement contributions are shown on the 1099R form we send you each January for tax filing purposes. 

Use Services Online to view your monthly annuity statement. This statement shows your current annuity payment, including the gross amount, up to 35 possible deductions or additions, and the net amount. The online statement reflects changes you made through the previous business day, unless the changes were made after the date for updating the monthly payment. Any changes you made after that date will be reflected in the statement for the next month's payment, when the change would be effective. Please refer to our payment schedule for information on the dates by which changes must be made in each month's payment. Your statement will also show required payment adjustments we make such as cost-of-living adjustments, health benefit premium changes, Federal income tax withholding table changes, and life insurance premium changes.

In most cases, as soon as we get all of your retirement records, we provide interim payments. These payments represent a portion of your final benefit and are usually made on the first business day of each month. We try to provide you with income until we finish processing your application.

Yes, there will be a COLA in 2012.  The effective day of the COLA is Dec 1st.  You'll see the increase in your Jan 3rd check.  Here's more information on the 2012 COLA. http://www.opm.gov/retire/annuity/cola/2012cola.asp http://www.opm.gov/FAQS/QA.aspx?fid=735eda40-61a8-45df-b6ad-47185f4c91a5&pid=5187bf2a-b5e8-46fb-816e-e0335d98d740&result=1

State tax withholding cannot be withheld from interim annuity payments.  If you are in interim pay (your case has not been finalized), contact your State tax office for guidance. Once your annuity is finalized, you must specify the dollar amount of State tax you want withheld from your monthly payments. The withholding must be in whole dollars. The minimum amount we can withhold for State income tax is $5. Use Services Online to start, change, or stop the State tax withheld from your annuity payment. You can also call us or write us to change your withholding amount.  If you write, your letter should include your full name, your claim number and the monthly amount in dollars you want withheld. If you do not know the monthly amount you want withheld, contact your State tax office for information or assistance. Not all States participate in the voluntary State tax withholding program.  Check our list of State tax offices for information about participating States. If your State does not participate, contact the State tax office for information or assistance.

OPM provides a federal tax calculator on our website, www.opm.gov/retire, that may assist you in determining the amount of Federal income tax to withhold. Please be advised that changing the amount of your Federal income tax withholding will not reduce your tax liability at the end of the tax year.

The survivor benefit you elected at retirement is no longer payable. A monthly survivor benefit would be payable to your former spouse after death if one is provided by court order or your new election. The following conditions must exist for your former spouse to receive a benefit:

• You were married to your former spouse for at least nine months;
• You performed at least 18 months of creditable civilian service;
• Your former spouse to whom you were married less than 30 years has not remarried before age 55.

Your annuity may be reduced if your former spouse was awarded a survivor annuity by a qualifying court order. If you retired on or after May 7, 1985, we will honor the terms of a court order that requires you to provide a survivor annuity for an eligible former spouse for a marriage dissolved on or after May 7, 1985. If you are divorced after retirement from a spouse to whom you were married at retirement, we will honor the court order to the extent that your annuity was reduced at retirement. If you did not elect a survivor annuity for that person at retirement, your annuity will not be reduced. If you retired before May 7, 1985, we will honor the terms of a qualifying court order that requires you to provide a survivor annuity for an eligible former spouse in connection with a marriage that was dissolved on or after May 7, 1985, but only if you were married to that person at retirement and elected to provide a survivor annuity at that time or your were married to that person at retirement and elected to provide a survivor annuity before May 7, 1985.

Use Services Online to sign up for direct deposit, or to change the account or bank where your payment is sent. You will need your claim number and Personal Identification Number (PIN) to use the self-service website. You will be asked whether your account is a savings or checking account and to provide your account number and the routing number for your financial institution (found next to your account number on the bottom of your check). You should contact your financial institution for assistance in getting the routing number if you are not sure. When you make a change, we will mail you confirmation of the change. You can also call us or write us to sign up for direct deposit or change your account or bank. If you write, your letter should include your claim number. You can also use this form to sign up for direct deposit. Or, you can submit a Standard Form 1199A, "Direct Deposit Sign Up Form," which is available at your bank. When you change the account you use for direct deposit, keep the old account open until a payment is posted to the new account. This will prevent having the payment returned if there is a problem with the new account.