Civil Service Retirement System

There are great many things, that the people are unaware of in the civil service retirement system in the United States of America. First the civil service retirement system works in a very simple way. It covers federal employees who joined the civil service retirement system before the first of January 1987. The civil service retirement system is known as a defined benefit which means that it guarantees a certain payment at retirement according to a calculation which depends on an individual’s salary and the number of years he/she has been in membership of the plan.

It is said that there are a number of benefits under the civil service retirement plan. However in order to qualify for it, you must meet two requirements. The first is mentioned above. In addition to it, you must have served in a position at the civil service retirement system for the last two years before your retirement. If you meet any of the two requirements, then you are eligible for an immediate retirement benefit. If you are in the need of an urgent retirement and you do not meet the correct age or requirements then you may be eligible for different retirement benefits. However you must have done five years of civil service for the least and be at a minimum age of sixty two.

If you are considering retiring soon and you are uncertain if you are qualified then you must submit a retirement application to the civil service retirement system, so that you will receive the benefits that you are entitled to. If you are still serving in the civil service then you can submit the form to your employer. If you are eligible then you will receive an annuity based on your length of service and salary. The information that you have provided in your application will be used to determine the kind of benefit you will be receiving from the civil service retirement system. You will be able to get your first payment as soon as all your records are received by the Office of Personnel Management.

Federal civil servants who receive retirements benefits from the civil service retirement system are subject to income tax when they file for federal income tax. However, keep in mind that, in addition to the base earning, the deductions protects a retired person’s funds earned during the time he/she was serving in the civil service and the amount that is reserved for his/her spouse.

As beneficial as the civil service retirement system is, be warned that civil service retirement system provides a cost of living increment periodically. If you retire before the age of 55 or provide for a dependent your benefits will be reduced. You can search online on how to calculate the payment you are liable to receive and if you have any doubts it is always possible to contact the appropriate authorities.