Continued Federal Disability Retirement dissertation from Part 6…
In this Federal Disability Retirement Dissertation CSRS example 2. This IRS employee has 27 years of service and his 52 years old with a High-3 of $67,000. This employee would also receive 1.5% of the High-3 per year for the first five years of service totaling 7.5%. They would also receive the 1.75% per year for the next five years totaling 8.75%. In addition they have earned 2% per year for the additional 17 years after completing their first 10 years of service totaling 34%.
7.5% +8.75% +34% = 50.25% of the High-3 for a gross yearly benefit $33,667.50
However, if it is not a disability retirement, they will have their annuity reduced by 1/6 of 1% per month before the age of 55. Being 52, this annuitant would have their retirement reduced by 6%. However, if this is a disability retirement, they would suffer no reduction.
To be continued…
