Puerto Vallarta, Mexico, has become a popular retirement destination for US expats. Image: Monica Garza 73/Shutterstock.com
By: FEDweek StaffI just got back from Mexico City where I was visiting my brother and his family. While there I ran into a few U.S government employees who were considering retiring in Mexico. They wondered if that would affect their ability to receive retirement benefits. While answering their question, it occurred to me that this would be a good topic to write about for those of you who are in a similar situation.
Let’s start with a broad question. Can a former federal employee receive CSRS or FERS retirement benefits when he or she lives outside the United States or its territories and possessions?
In general, the answer to that question is yes; however, there is an exception. You can’t receive retirement benefit if you live in one of the so-called “blocked countries.”
The two that have been on the list for the longest time are Cuba and North Korea. However, there are many others that may either be totally blocked or may vary in the level of government sanctions applied to them. There’s a list of those countries here: https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information.
Once you’ve accessed the site, selecting a country will lead you to a page where you can click on a series of headings, for example, Sanctions, Frequently Asked Questions, and Interpretive Guidance. You can then work your way down to get additional information.
FYI: If you live in a blocked country, don’t try to be clever and use an intermediary to get your retirement benefit to you. Both the Departments of Treasury and State keep a close eye on things like that. And they wouldn’t be willing to forgive or forget your transgression.
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