Thread: XL-entLady's Account Talk

There has been a lot of talk today about retirement, and Luv2 and I have had some PM conversations about it as well. So I thought I’d summarize points that I’ve learned over the years in the hope that it may help.

FERS retirements are completely different from CSRS, in that the CSRS annuity is a “one amount paycheck” type of thing, but FERS retirements are paid in 3 separate ways. A FERS retirement is (1) annuity, (2) TSP dollars, and (3) social security checks.

(1) A FERS retirement annuity (the one totally separate from TSP) is figured as 1% of your high three average pay times your years in service. If you make it to 30 years of service, then the multiplier is 1.1%.

It comes as a monthly check, and there aren't any options about what you can do with it as far as lump sum, etc. Your health insurance and life insurance premiums are deducted out of that check, and any tax withholding you choose, and the rest gets auto deposited into your bank account.

(2) Then you have several options for taking your TSP dollars back out of the system, including buying a TSP annuity, taking the $ out in a lump sum, or withdrawing $ monthly based on your life expectancy or on a specific dollar amount you choose. I chose the latter option, and I can change the dollar amount I specify once a year, while still enjoying the interest my account is earning.

(3) And the final piece is that FERS qualifies you for social security, with the same social security rules that apply to private sector. You have to work for at least 40 quarters to qualify and you have to be at least 62 years of age to get a check.


If you have a great HR department, then you can get a retirement analysis from them. If your HR department is like a lot of them, then your best bet is to get an Employee Benefits Statement from your Employee Express website. I’m sorry that I can’t be specific about giving you directions for how to get there, but I can’t get to the site anymore because I’m an annuitant. But go to the Employee Express website, and log in as you normally would. After you log in, there is an option on the lower right of the page that says something about an Employee Benefits Statement. You click on that and it quickly gives you a hugely detailed report that discusses your projected retirement and benefits figures. And you can play with the data by putting different retirement dates in.

If you have any specific questions I’d be happy to answer them to the best of my ability. I’m not HR but just went through the process and it’s fresh in my mind.

Lady

Thank you for the great information... I've also read about having 30 years in and being able to get a social security offset until the real social security kicks in.... Age 56 and 30.... Hip Hip Hooray!!

John

Originally Posted by Gaetaone

Thank you for the great information... I've also read about having 30 years in and being able to get a social security offset until the real social security kicks in.... Age 56 and 30.... Hip Hip Hooray!!

John

30 years...are you CSRS?

Originally Posted by Gaetaone

Thank you for the great information... I've also read about having 30 years in and being able to get a social security offset until the real social security kicks in.... Age 56 and 30.... Hip Hip Hooray!!

John

You're correct about the supplemental - thanks for the reminder.

For those who don't already know, one more piece of the FERS retirement puzzle is that if you work until you're 60 years old (or MRA if you have 30 years) and then retire, you get a social security supplemental payment for the two years from 60 to 62. It's figured in an involved formula and usually isn't quite as much as a social security payment will be. And you only get it until you're 62, even if you choose not to apply for social security at 62.

But if that social security piece makes the difference between retirement or working, the supplemental payment is a light at the end of the tunnel that isn't a train!

Lady

More info regarding the supplement from the OPM website:

"If you transfer to FERS and you have at least 1 calendar year (January 1 to December 31) of FERS service when you retire, you will be eligible for the Special Retirement Supplement. The special retirement supplement (also known as the FERS supplement) is unique to FERS. It substitutes for the Social Security part of your total FERS benefit until age 62, when most people become eligible for Social Security. The purpose of the supplement is to provide a level of income before age 62 similar to what you will receive at age 62 as part of a Social Security benefit. The supplement stops at age 62 even if you are not eligible for Social Security. Like Social Security benefits, the supplement is subject to an earnings test, which means the supplement is reduced if your income from earnings or self-employment is higher than an allowable amount.
Eligibility Requirements

In addition to at least 1 full calendar year of FERS service, you must retire on an immediate annuity (that is, one that begins within 1 month of separation) under one of the following provisions to be eligible for the Special Retirement Supplement:

1. after 30 years of service at or after your MRA (minimum retirement age); or
2. after 20 years of service at or after age 60; or
3. under one of the special provisions for law enforcement officers, firefighters, air traffic controllers, or military reserve technicians; or
4. under discontinued service retirement or early retirement (that is, a major RIF, reorganization, or transfer of function) provisions. However, if you retire on a discontinued service or an early retirement, you will have to wait until you reach your MRA before you can begin to receive the supplement. Individuals who retire on disability or under the MRA + 10 retirement provision cannot receive the supplement. "

Lady

I think all this needs its own thread in the "retirement" forum, so it doesn't get lost. One of the mods might be able to move it, if you like, Lady. Just a suggestion.

Originally Posted by XL-entLady

More info regarding the supplement from the OPM website:Lady

Next: deferred annuities (reduced and unreduced)

Originally Posted by luv2read

I think all this needs its own thread in the "retirement" forum, so it doesn't get lost. One of the mods might be able to move it, if you like, Lady. Just a suggestion.

Excellent suggestion, Luv2, but I dont' know how to move it. Shall I do a 'copy and paste' to a new thread? Or ask a moderator to do it?

Lady

Originally Posted by XL-entLady

Excellent suggestion, Luv2, but I dont' know how to move it. Shall I do a 'copy and paste' to a new thread? Or ask a moderator to do it?

Lady

Ask one of the mods which is easiest/best.

Originally Posted by XL-entLady

If you have a great HR department, then you can get a retirement analysis from them. If your HR department is like a lot of them, then your best bet is to get an Employee Benefits Statement from your Employee Express website.

Woops! I was rereading my post and realized that I phrased that way wrong! It sounds like I don't think HR departments do a good job and that is not what I meant! What I was trying to imply was that most HR departments are understaffed and overwhelmed with work. So I figured I'd better clarify!

Lady

For those of you who are interested in what today's numbers did to the moving averages, my figures show:

G Fund is at its 14 day average, 0.2% above its 50 day average, and 1.0% above its 200 day average.
F Fund is 0.1% above its 14 day average, 0.3% above its 50 day average, and 1.3% above its 200 day average.
C Fund is 1.2% below its 14 day average, 0.1% above its 50 day average, and 0.5% above its 200 day average.
S Fund is 1.0% below its 14 day average, 1.3% above its 50 day average, and 2.3% above its 200 day average.
I Fund is 1.1% below its 14 day average, 1.2% above its 50 day average, and 2.6% above its 200 day average.

I'm still holding the course, and will continue to do so unless we dip below 1350. If that happens then I'm not sure where it's going to quit, and I'll act to stop the bleeding.

Lady