Thread: Retirement system error

Originally Posted by TRAFFIC_DOG

Not so fast............ (AT LEAST IF YOU ARE ATC)

My co-worker and I smile to ourselves as the CSRS crowd revels in thier percieved superior package.

We are some of the 1st FERS in '84. Our friend was fall of '83 and CSRS. Lets compare. Both have 31yrs "good" time.

I will go at 31 years at my MRA (56) And therefor qualify for a rather funky provision giving me 1.7% for each year of "good" time.

This equals 52.7% of an assumed 120k = $63240/yr
CSRS bud.. 58.0% of 120k = $69600/yr

Hold up there Traffic Dog - perhaps ATC is different from Fed LEO's in a way I don't know about, but I thought they were essentially the same - my understanding is I only get the 1.7% calculation for the first 20 years of my "covered" time - & 1% for all years thereafter (or before) including military-bought-back time.

Example: I'll have 25 years FERS "funky" coverage as an LEO, the last 5 years will be calculated at 1% (even though I'm still paying in 1.7% to the retirement system) My bought back military will also be figured at only 1%.

20 yrs "covered" time x 1.7% = 34%
5 years extra "covered" time x 1% = 5%
4 years bought-back military x 1# = 4%
Total FERS Pension as a % of high-three = 43%

Originally Posted by TRAFFIC_DOG

We also get the supplement, figured at..... 31yrs divided by 40yrs(full SS qualifier) equals .775 times projected benefit of $18000 = $13950

$63240 + $13950 = $77190. We're already $7590/yr ahead.

Note: After we turn 56 supplement will be reduced by $1 for every $2 in outside wage earnings over 13K. And no COLA on the supplement - ever!

Originally Posted by TRAFFIC_DOG

But CSRS gets fulL COLA, while we get COLA minus 1%........ so we start losing ground right away. Plus our supplement gets NO COLA until you convert to real Soc Sec at age 62...... so more lost ground.

Sucks.

Originally Posted by TRAFFIC_DOG

But as we TSP'ers know..... the real kicker is the TSP.

My CSRS pal has roughly $200k in his Thrift...... while I have ......much more.

Applying same %'s to the TSP accounts for next 7 years...
I'll have about $1M more than he.

At a mere 5% safe return per year, that's $50k per year, not touching the principle to leave to my kids..........

That's probably more than $50k per yr more than he.... plus $500k left to each of my kids....

I'm happy with my FERS.

I haven't done "quite" as well in TSP - but then I've only been a FED TSP'er for 24 years & going to early retire at 25.5 years. Maybe if I stay on for 7 more years though? hmmmmm? - NOT!

I'd rather have been CSRS all this time, but don't whine too much cause all things considered I'm still happy with my FERS Special Coverage as opposed to regular coverage or private sector. (although I know of at least one retired big-city police officer who gets 90% of high-five - no medical insurance benefit though for retirees._

I'm figuring mine will work out to roughtly: 43% FERS Pension + 10% from Supplement + 10% from TSP Equal Monthly Payments based on Life Expect. = 63% of high three. But I'll only be 49 y/o!

I wish some of these forums would have special sections dedicated to the ATC/FF/LEO Special coverage.