by clicking on the page. A slider will appear, allowing you to adjust your zoom level. Return to the original size by clicking on the page again.
the page around when zoomed in by dragging it.
the zoom using the slider on the top right.
by clicking on the zoomed-in page.
by entering text in the search field and click on "In This Issue" or "All Issues" to search the current issue or the archive of back issues respectively.
by clicking on thumbnails to select pages, and then press the print button.
this publication and page.
displays a table of sections with thumbnails and descriptions.
displays thumbnails of every page in the issue. Click on a page to jump.
allows you to browse through every available issue.
Federal Employees News Digest : Sep 2, 2013
T his last of six columns examining survivor annuity benefits discusses the lump-sum credit. Unlike the spousal survivor annuity benefit discussed in previous columns, there is no cost to an employee or an annui- tant in order to give a lump-sum credit. Each pay period, full-time and part-time employ- ees contribute to either the Civil Service Retirement System (CSRS) or to the Federal Employees Retirement System (FERS). Specifically, each pay date CSRS employees contribute via payroll deduction 7 percent of their after-tax wages to the CSRS Retirement and Disability Fund. CSRS Offset employees contribute via payroll deduction 0.8 percent of their after-tax wages to the CSRS Retirement and Disability Fund, while most FERS employees each pay date contrib- ute 0.8 percent of their after-tax wages to the FERS Retirement and Disability Fund. Effective Jan. 1, 2013, all newly- hired FERS employees contribute 3.1 percent of their after-tax wages to the FERS Retirement and Disability Fund. When CSRS and FERS employees retire, their retirement fund contributions are returned to them tax-free as part of their monthly CSRS or FERS annuities. The tax-free return of employee retirement contributions continues to be paid over the annuitant's life expectancy according to the IRS's Simplified Rule, discussed in IRS Publication 721 (Tax Guide to U.S. Civil Service Retirement Benefits). If a survivor annuity is given, then the retirement contributions are paid over the annuitant's and the survivor annuitant's joint life expectancy. If an annuitant chooses not to give a survivor annuity and the annuitant dies before reaching full life expectancy (or if an employee dies in service), then all or a portion of the deceased annuitant's/ employee's retirement contributions will remain in the CSRS or FERS Retirement and Disability Fund. If a survivor annuity is given and both the annuitant and the survivor annuitant die before reaching full life expectancy, then there will also be remaining employee retirement contributions in either the CSRS or FERS Retirement and Disability Fund. In either case, any remaining employee contributions in either retirement fund will be paid to a beneficiary (or beneficiaries if divided) in the following order of precedence: • Designated Beneficiary. To the beneficiary or beneficiaries des- ignated by the employee on a signed and witnessed form received by OPM before the date of death: (1) CSRS and CSRS Offset employees -- Form SF 2808; (2) FERS employees -- Form 3102; (3) "Trans FERS" employees -- both Form SF 2808 and SF 3102. • Widow or Widower. If there is no designated beneficiary and there is no spousal survivor annuity, to the widow/ widower of the deceased. • Child or Children. If none of the above, to the child/children with the share of any deceased child dis- tributed among the descendants of the child. • Parents. If none of the above, to the parents in equal shares or the entire amount to the surviving parent. • Executor or Administrator of the Estate. If none of the above, to the appointed administrator of the estate or to any person who has authority under appli- cable state law to represent the deceased's estate. • Next of Kin. If none of the above, to the next of kin determined by OPM to be entitled under the laws of the domicile of the deceased at the date of death. The lump-sum credit consists of the refunded amount of one or more of the following: (1) CSRS and FERS retire- ment deductions withheld from the employee's salary; (2) redeposit of refunds previously paid; (3) deposits for temporary civilian ser- vice; (4) deposits for post-1956 military service; and (5) in the case of an employee or former employee who dies with less than five years of creditable service, interest to the date of separation on any amount covering over one year of service. Note that if a survivor annuity is payable to a spouse, parent or a child, then the designated survivor annuitant should not be desig- nated as the beneficiary of the lump-sum credit. But that individual can be entitled to a portion or all of a lump-sum payment consisting of: (1) CSRS retirement deductions withheld from the employee's salary after a CSRS/CSRS Offset employee reached 41 years and 11 months of service; (2) partial redeposit of refunds previously paid, unless the survivor completes payment of the redeposit; (3) partial redeposit for CSRS-covered civilian service performed on or after Oct. 1, 1982, unless the survivor completes payment of the deposits; (4) partial deposit for post-1956 military service; and (5) completed deposits for post-1956 service when the military service is not used to compute the survivor benefit. Eligible recipients of the lump-sum credit will need to file certain forms with OPM. Form SF 2800 (CSRS/CSRS Offset) and SF 3104 (FERS) together with a certified copy of the death certificate are sent to the deceased employee's agency if the employing agency has not forwarded records to OPM. If the employing agency has already for- warded the deceased's records to OPM, then forms SF 2800 or SF 3104 and the certified death certificate are sent to OPM at the following address: OPM, P.O. Box 45, Boyars, PA 16017-0045. Edward A. Zurndorfer is a Certified Financial Planner and Enrolled Agent in Silver Spring, MD. He is also a registered representative with FSC Securities Corporation, branch address: 833 Bromley St. - Suite A, Silver Spring, MD 20902. Phone: (301) 681-1652. Securities offered through FSC Securities Corporation,member FINRA/SIPC. EZ Accounting and Financial Services and FSC are independent companies. Informed Investor Deciding on survivor annuity benefits, Part VI : Lump-Sum Credit September 2, 2013 Vol. 63, No. 7 7 Visit us on the Internet at www.FederalDaily.com
Aug 26, 2013
Sep 9, 2013