Join Early Retirement Today
Thread Tools Search this Thread Display Modes
FERS retirement VSIP and Social Security question
Old 07-10-2014, 12:30 PM   #1
Recycles dryer sheets
newellcr's Avatar
Join Date: Aug 2003
Posts: 205
FERS retirement VSIP and Social Security question

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?



newellcr is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-10-2014, 01:18 PM   #2
Dryer sheet wannabe
Join Date: Sep 2013
Posts: 11
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.

whipsaw is offline   Reply With Quote
Old 07-10-2014, 08:09 PM   #3
Thinks s/he gets paid by the post
martyb's Avatar
Join Date: Nov 2006
Location: Bossier City
Posts: 2,183
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!
“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
-John F. Kennedy

“Hard work never killed anybody, but why take a chance?” - Edgar Bergen
martyb is offline   Reply With Quote
Old 07-11-2014, 08:56 AM   #4
Recycles dryer sheets
newellcr's Avatar
Join Date: Aug 2003
Posts: 205
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 is offline   Reply With Quote
Old 07-11-2014, 08:59 AM   #5
Recycles dryer sheets
newellcr's Avatar
Join Date: Aug 2003
Posts: 205
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.

newellcr is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
FERS annuity question David1961 Life after FIRE 7 05-01-2013 03:25 PM
FERS Retirement Briefing GolfingDuo FIRE and Money 12 03-22-2013 07:12 PM
Question about FERS early retirement clintonmotor Hi, I am... 12 03-01-2011 07:18 PM
Looking for info on FERS early retirement David1961 Young Dreamers 22 04-07-2009 08:34 PM
FERS Technical Question OhSoClose FIRE and Money 9 02-22-2009 01:13 PM

» Quick Links

All times are GMT -6. The time now is 06:06 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.