Retired feds with military, Peace Corps time get retirement fix
- By FederalSoup Staff
- Apr 22, 2021
For most feds, their employing agency and the Office of Personnel Management do a decent job of managing pay and benefits records—and, when the time comes, calculating and initiating properly calculated retirement pay.
But there have long been complaints from some feds who put in years of service, only to find their retirement miscalculated—leading to underpayment, or even a big bill they must cover for belatedly discovered shortfalls, if they want to get their expected benefits.
Now, according to a piece in GovExec.com, OPM has effected a needed fix so, at least for some affected feds, this problem should become a thing of the past. The agency is implementing new procedures under a 2018 law that directs agencies—not employees—to pay interest to make up shortfalls when the government makes an error in calculating certain aspects of retirement.
The tweak comes into play when there is an agency error in implementing a selected optional retirement benefit—one that can be selected by feds with military, Peace Corps or Volunteers in Service to America time under their belt, by authority of the Correcting Miscalculations in Veterans’ Pensions Act.