QUESTIONS
1. Does my age have anything to do with the rate of my retirement plan contributions?
2. Do I make contributions while absent on authorized sick or vacation leave?
4. What is done with the contributions to the plan?
5. May I borrow on my contributions?
6. May I withdraw my contributions?
7. Has AAFES made contributions for the Social Security portion of my total retirement?
8. How does my AAFES retirement income compare with that which I could purchase otherwise?
10. Is there any reduction in the amount of retirement income if I retire before age 62?
11. When is the earliest that I can retire?
12. How are my cost of living adjustments (COLAs) computed?
13. Could there be a decrease in my annuity because of COLAs?
14. Is the COLA part of my basic retirement annuity?
15. What happens to my contributions if I terminate my employment with less than 3 years of service?
16. If I die as an active participant, what happens to my contributions?
17. If I die after I retire are there any further benefits?
18. What is the difference between a beneficiary and a survivor?
19. Whom may I name as my beneficiary for my contributions?
20. What happens if the person(s) I name as beneficiary dies before I do?
21. May I change my beneficiary?
22. What assurance have I that my retirement pension will be paid?
23. Is it possible that less money will be returned to me than I contributed to the retirement plan?
24. Is military service included in my pension calculation?
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1. Does my age have anything to do with the rate of my retirement plan contributions?
A. No.
2. Do I make contributions while absent on authorized sick or vacation leave?
A. Yes. If you are receiving salary or wages from AAFES, you make retirement plan contributions at the usual rate.
3. If I terminate my service and subsequently become reemployed, do I lose credit for my previous period of employment?
A. Your credits for all previous regular full-time employment may be reinstated. If you had withdrawn your own contributions when you previously terminated, they must be redeposited with interest prior to the date you retire, die, terminate with vested rights, or are terminated with a disability benefit; otherwise, you will not receive any credit for previous employment.
4. What is done with the contributions to the plan?
A. They are deposited with investment managers selected by the trustees.
5. May I borrow on my contributions?
A. No - Never.
6. May I withdraw my contributions?
A. Only if you terminate your employment.
7. Has AAFES made contributions for the Social Security portion of my total retirement?
A. Yes. AAFES will have matched your Social Security contributions for the period of your civilian service.
8. How does my AAFES retirement income compare with that which I could purchase otherwise?
A. Generally, the Retirement Plan provides more income because you have the advantage of the AAFES contributions as well as your own.
9. Is the Social Security Offset applied at age 62 if I decide to have my Social Security benefits commence at a later date?
A. Yes.
10. Is there any reduction in the amount of retirement income if I retire before age 62?
A. For Voluntary Early Retirement at age 55 after 30 years of Credited Civilian Service, or at age 60 after 20 years of Credited Civilian Service, there is no reduction even though you have not reached age 62.
Optional Early Retirement and Involuntary Early Retirement are reduced as follows:
For Optional Early Retirement, the amount will be reduced at the rate of 4% per year, for each year your retirement pension commencement date precedes your Normal Retirement date.
For Involuntary Early Retirement before age 55, the amount is reduced by 2% per year for each year your retirement date precedes age 55.
11. When is the earliest that I can retire?
A. 52 years of age and 5 or more years of Credited Civilian Service
12. How are my cost of living adjustments (COLAs) computed?
A. Presently annual COLAs for retired employees and survivors are effective March 1. The method of computation is the same as under the Civil Service Retirement Act, as amended, subject to changes made by Congress at any time. This is as follows: The March 1 increase is determined by the percentage change in the Consumer Price Index (CPI-W), published for the preceding calendar year. Pensions are increased by no more than the actual percentage rise in the CPI-W, adjusted to the nearest one-tenth of one percent. If at any time there is no change, or if the percentage represents a drop in CPI-W, there is no change in the amounts of pensions. The initial increase after retirement is determined according to how many months you were retired prior to March 1. For example, if the CPI-W increased by 6%, and you retired on September 1, you will receive a COLA of 3%. This is because you were retired for the months of September, October, November, December, January and February, a total of 6 months, which is 6 1/2, or 1/2 of the COLA period.
13. Could there be a decrease in my annuity because of COLAs?
A. No.
14. Is the COLA part of my basic retirement annuity?
A. No. The COLA is not a vested benefit.
15. What happens to my contributions if I terminate my employment with less than 3 years of service?
A. You will receive a lump sum return of your contributions.
16. If I die as an active participant, what happens to my contributions?
A. If you are:
- Single, or married for less than one year, or married more than one year and a participant less than 18 months your beneficiary receives your contributions plus interest if applicable,
or
- A participant with at least 18 months of service and married for at least one year and eligible for retirement, your spouse receives an annuity computed in accordance with the prescribed formula.
17. If I die after I retire are there any further benefits?
A. If at the time of your retirement:
- You were married and elected to have your spouse receive a benefit, your spouse will receive benefits according to the plan formula,
or
- You were married and elected not to have your spouse receive a benefit, there will be no further benefits,
or
- You were not married, and elected a named survivor (child, etc.) to receive a benefit, your named survivor will receive benefits according to the Plan.
18. What is the difference between a beneficiary and a survivor?
A. A beneficiary is not entitled to any pension benefits relating to your employment, but is entitled to the excess of your contributions plus interest over the retirement benefits you or your survivor have already received at the time of your death.
A survivor is entitled to benefits according to the Plan after you die.
19. Whom may I name as my beneficiary for my contributions?
A. Any living person, or organization.
20. What happens if the person(s) I name as beneficiary dies before I do?
A. If the beneficiary/beneficiaries are not living at time of your death, any lump sum payment due will be paid in accordance with your will, to your estate, or a designated line of succession.
21. May I change my beneficiary?
A. Yes. By completing and filing the necessary forms with your servicing personnel office.
22. What assurance have I that my retirement pension will be paid?
A. AAFES makes substantial contributions so that the funds necessary to provide for your pension are available when you retire. These funds are held in trust for the benefit of Plan participants.
23. Is it possible that less money will be returned to me than I contributed to the retirement plan?
A. No. You and your beneficiary will get back all of your contributions, plus credited interest if applicable.
24. Is military service included in my pension calculation?
A. Yes. Up to five years with certain exceptions.