Arkansas State Employees Retirement System
The US Congress has enacted several laws that can help a veteran gain employment with the federal government and these veteran’s benefits also extend after the hiring decision is made. It is critical that veterans know these benefits so they can enjoy every benefit that Congress intended. These benefits include a higher annual leave accrual rate, greater retirement benefits, job retention during reductions in force and enhanced appeal rights under certain programs. This article covers the greater retirement benefits that a veteran can enjoy when the veteran is employed by the federal government.
Military Service Means Greater Retirement Benefits
While in many cases a veterans military service either earned the veteran a preference in the hiring process or allowed the veteran to apply, the veteran’s military service can also mean a greater retirement benefit if the veteran makes a career of federal service. In order for this to happen the veteran must do several things and the first is to make sure that the Human Resources office gets a copy of the veteran’s DD-214 Certificate of Release from Active Duty. When a veteran is hired by the federal government, one of the first things that a veteran should do is make sure that his or her military service is properly recorded with human resources. This provides the documentation that will entitle the veteran to a higher leave accrual rate and start the process to enhance the future retirement pay of the veteran if the veteran stays long enough to retire under the Federal Employee Retirement System (FERS).
Once the FERS eligible veteran’s military time has been identified the veteran must request that Human Resources determine the amount of the employee’s retirement contribution. In order to determine this amount the Human Resources office of the hiring agency will need to know the amount of taxable pay earned by the veteran during military service. This can normally be calculated using the W-2 forms issued and used in filing income tax returns but care must be taken to use the proper amounts if the veteran served in a combat zone which is normally a ax exclusion zone in which no income taxes are withheld. Once this amount is determined, the employee’s retirement contribution is found by multiplying the military earnings by 0.03 or 3 percent.
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