Changes

Generally, an employee has the right to determine his/her "date of final separation" (i.e. the last day on the payroll; it does not have to be the final working day in a pay period<ref>However, an employee leaving service during a pay period will not earn annual leave or sick leave for that period.</ref>), but an employee cannot be on leave on that date<ref>A common trick is for an employee to take substantial leave -- generally sick leave in excess of what is needed to obtain additional time toward the annuity, or compensatory or awarded leave which is not paid out at separation -- until the final day, then come into the office on that day for out processing.</ref>; the following day is the employee's retirement date.  The annuity does not begin until '''''one full calendar month''''' has passed since the employee's retirement.  Thus, an employee retiring on June 30 will have his/her annuity begin on August 1 (as the employee will be retired beginning July 1 and for the entire month of July), but an employee retiring on July 1 will not have his/her annuity begin until September 1 (as the employee will be retired beginning July 2 but not for the entire month of July, only in the following month -- August -- will the employee be retired for an entire month).  Thus, it is common for employees to retire on the last day of the month, and more common for the date to be December 31 (as employees commonly use little or no annual leave in the final year, which added to their carryover balance from the prior year -- 240 hours for most employees -- provides a large lump-sum in January of the following year).

Generally, an employee has the right to determine his/her "date of final separation" (i.e. the last day on the payroll; it does not have to be the final working day in a pay period<ref>However, an employee leaving service during a pay period will not earn annual leave or sick leave for that period.</ref>), but an employee cannot be on leave on that date<ref>A common trick is for an employee to take substantial leave -- generally sick leave in excess of what is needed to obtain additional time toward the annuity, or compensatory or awarded leave which is not paid out at separation -- until the final day, then come into the office on that day for out processing.</ref>; the following day is the employee's retirement date.  The annuity does not begin until '''''one full calendar month''''' has passed since the employee's retirement.  Thus, an employee retiring on June 30 will have his/her annuity begin on August 1 (as the employee will be retired beginning July 1 and for the entire month of July), but an employee retiring on July 1 will not have his/her annuity begin until September 1 (as the employee will be retired beginning July 2 but not for the entire month of July, only in the following month -- August -- will the employee be retired for an entire month).  Thus, it is common for employees to retire on the last day of the month, and more common for the date to be December 31 (as employees commonly use little or no annual leave in the final year, which added to their carryover balance from the prior year -- 240 hours for most employees -- provides a large lump-sum in January of the following year).

Married employees must agree to provide spouses (or former spouses, in some cases), a survivor annuity (which pays a lower portion of salary to the surviving spouse or former spouse), unless the current or former spouse affirmatively consents in writing to forego the annuity.<ref>The only exception is if the current or former spouse cannot be located.</ref>  Survivor annuities are also available for other persons, whether or not related by blood or marriage, but the person must provide proof of insurability.

Married employees must agree to provide spouses (or former spouses, in some cases), a survivor annuity (which pays a lower portion of salary to the surviving spouse or former spouse), unless the current or former spouse affirmatively consents in writing to forego the annuity.<ref>The only exception is if the current or former spouse cannot be located.</ref>  Survivor annuities are also available for other persons, whether or not related by blood or marriage, but the person must provide proof of insurability.  The standard survivor annuity for a spouse is 50% of the retiree's annuity (before a 10% reduction to pay for that annuity) but other options are available.

A portion of the annuity, since it was paid from post-tax earnings, is not taxable, and will be shown on the annuity statements.  The non-taxable portion is very small, as the government provides the bulk of the payments needed for the annuity; however, the non-taxable portion must be pro-rated over the expected life of the retiree (and, where applicable, the expected life of the designated survivor) in accordance with tax code.

A portion of the annuity, since it was paid from post-tax earnings, is not taxable, and will be shown on the annuity statements.  The non-taxable portion is very small, as the government provides the bulk of the payments needed for the annuity; however, the non-taxable portion must be pro-rated over the expected life of the retiree (and, where applicable, the expected life of the designated survivor) in accordance with tax code.