FERS retirement VSIP and Social Security question

[newellcr]

I couldn't find many VSIP hits using the search. I don't think this one has been asked. I am considering taking the VERA/VSIP (read - early out pension and $25k payment) that is currently being offered to me. VSIP is voluntary separation in pay and it can be collected in a lump, 26 'equal' payments like a paycheck, or in 2 payments that are delayed and delivered at the 6 and 12 month mark. Taxes, SS, and medicare are deducted.


If I accept the VERA/VSIP on Aug 31 and delay the payments, will the $25k show up as earnings in 2015 on my SS statement as if I were working a $25k/yr job?

Thanks,

Chris

 

[whipsaw]

I don't believe it is treated as earnings for SS purposes. You may have to contact them in order to let them know that you received such a payment.

http://www.ssa.gov/pubs/EN-05-10063.pdf

 

[martyb]

I retired last week under CSRS. I wish I'd been offered the VERA/VSIP. There was one offered in my agency back in 2011, but I wasn't ready to go at that time. Congrats!

 

[newellcr]

Whipsaw, Thanks for the link. I find it confusing that they specifically say that they are taking SS and Medicare from the payment. I would hope that if they are taking it from my cash, SSA will credit it to my 'account' as earnings.

 

[newellcr]

Hello Marty, I started to lurk around here again not too long ago and saw a couple of your posts, but didn't have anything to add. My group is over TDA. They offered it in March, but I wasn't eligable. This August offer was a complete surprise.

Thanks,