New Retiree

• When you’ll get your first payment
• Withholdings from interim payments
• What you will receive when the Office of Personnel Management finishes processing your application
• Credit for Federal civilian service if you didn’t make retirement contributions
• Changing your health insurance coverage after retirement
• Changing your life insurance coverage after retirement
• Amount of cost-of-living increase you will receive
• Taxable portion of your retirement benefit

When you’ll get your first payment

In most cases, as soon as we get all 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.

Withholdings from interim payments

We only withhold Federal income tax.  You may find that the Federal income taxes withheld from your first interim payment will be higher than the Federal tax withholdings from your subsequent interim payments and regular annuity.  We will make any necessary tax withholding adjustment when we finish processing your application.  Your health and life insurance coverage will continue while you are receiving interim pay.  We will begin withholding health and life insurance premiums retroactive to the commencing date of your annuity, when we finish processing your application.

What you will receive when the Office of Personnel Management finishes processing your application

We will send you a personalized statement titled "Your Federal Retirement Benefits".  It details, among other things, how much your monthly payment will be.  It also confirms such things as health and life insurance coverage, and provides information you will need to prepare your tax returns.

Credit for Federal civilian service if you didn’t make retirement contributions

Under the Federal Employees Retirement System (FERS), you will be given the opportunity to pay for temporary service prior to January 1, 1989.  Under the Civil Service Retirement System (CSRS), if you had service on/after October 1, 1982, for which no contributions were made, we will give you the opportunity to pay the contributions, and will tell you what difference it makes to your monthly benefit.  If you had unpaid service prior to October 1, 1982, we do not notify you before we finish processing your application because it generally is not to your advantage to make the payment.

Changing your health insurance coverage after retirement

After you retire, you will still have the opportunity to change your enrollment from one plan to another during an annual open season.  You cannot change to another plan simply because you retired.

Changing your life insurance coverage after retirement

You can cancel or decrease your coverage at any time. You cannot increase your coverage.

Amount of cost-of-living increase you will receive

We will prorate the first cost-of-living increase based on how long you were retired before it is given.  At that time, we will send you a notice explaining the increase.  Federal Employees Retirement System (FERS) cost-of-living increases are not provided until age 62, except for disability and survivor benefits.

Taxable portion of your retirement benefit

• Use our calculator to figure the tax-free portion of your annuity payment. 
• Use our calculator to figure the amount of your monthly federal income tax withholding. 
• Then, use Services Online to change the federal tax withheld from your annuity payment.