Thread: FERs Retirees, anyone?

Originally Posted by Maricar19

Hi USC, you might know the answer to my my spouse's dilemma.
Spouse is 57 y.o., at MRA, 30 years work. Plans to retire next year at 58 with 31 yrs. of service
As of today, SS estimated benefit says, if you continue to work until 62, you will get $1628.

I guess our question is if spouse stops working upon retirement at 58, spouse will not get $1628, but will probably be lower?
I saw a formula before where it showed SS still computes at 40, but adds zero, "0" for every non work years.

Will appreciate your input.

SS uses 35 years of earnings. As his last few years would probably be higher than his early years of employment I'd expect he'd get slightly less.

Here is an IRS form with worksheet. Not sure if it will help. http://www.ssa.gov/pubs/EN-05-10070.pdf

Originally Posted by Kaufmanrider

SS uses 35 years of earnings. As his last few years would probably be higher than his early years of employment I'd expect he'd get slightly less.

Here is an IRS form with worksheet. Not sure if it will help. http://www.ssa.gov/pubs/EN-05-10070.pdf

Thanks Kaufmanrider! So it looks like he'll get zero earnings from the time he retires, age 58 ( 31years) until he reaches age 62, (35years).

Originally Posted by Cactus

For those folks talking about our high 3 years, remember those aren't actual calendar or even fiscal years. The FERS pension is calculated on our highest 36 consecutive months.

Thanks Cactus.....I'd never heard that so it's good to know. So keeping each W-2, or each year's Leave and Earnings statement that shows your Year-to-date totals is not good enough if you want to ensure HR gets it right. Gotta keeps copy of each LES.

That's especially true if you have a prior period when you earned higher pay...like if you lived in area with higher locality pay.

This is a link to site that has tips on helping you find a "Private" pension plan that you may have "vested" in many years ago during your early work years.

The Pension Benefit Guarantee Corporation (PBGC) helps find lost pensions, and has some funds it takes over from terminated /bankrupt company pensions that had defined benefit plans, etc. This is a Federal corporation established under the ERISA law passed in 1974 to protect pension plans. It tracks current pension plans as well.

http://www.pbgc.gov/documents/findin...st-pension.pdf

I worked for Kroger back in the early 1980s while going to school. I think I vested in at 5 years just before I came to work civil service. So now I will be looking into that, and contacting the union as well. Quick searches on Internet show there have been lots of consolidations of Kroger's various plans over the years. It might not end up being much but every bit helps!!

They have a link for unclaimed pensions, but if your name is not listed this does not mean you do not have a pension due to you. Their list is not complete. They also have search links to find the name of the plan and POC.

Here is link to their home page.

Pension Benefit Guaranty Corp - PBGC Protects America's Pensions

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Thanks Kaufmanrider! So it looks like he'll get zero earnings from the time he retires, age 58 ( 31years) until he reaches age 62, (35years).[/QUOTE]

Did he work prior to starting Federal Service, serve in the military, have part time work in college or high school etc ? Those years will count. Something, however small, is better than 0.

Originally Posted by Kaufmanrider

]

Thanks Kaufmanrider! So it looks like he'll get zero earnings from the time he retires, age 58 ( 31years) until he reaches age 62, (35years).[/QUOTE]

Did he work prior to starting Federal Service, serve in the military, have part time work in college or high school etc ? Those years will count. Something, however small, is better than 0.[/QUOTE]

Maricar,
Yes, but don't get confused. Your example, Retire at 58 (completely stop working). Your 'top 35 years' are in the books. 0's will be put in for SS earnings for years 59-62. If you look closely at the form that Kaufmanrider linked, you will see that the 'top 35 years' do not need to be consecutive. Your Zero years will only be added in if you don't have a total of 35 other years with at least SOME income. Also note that the form 'indexes' every year of earnings, based on inflation, so comparing all the top 35 years will be done on a Current Equivalent Dollar basis. So while your latest years are usually your highest years, that may not be so when you are indexing the years. Especially if you are a recent Federal worker....we had a 0% increase followed by 2 years of 1% increases while inflation marched along at, what, 2% per year? Earlier years could be somewhat higher.

Then, if you wait till FRA instead of starting at 62, again the 35 top years are the same, but now you don't get the ~27% deduction for starting withdrawals at 62. Furthermore, if you wait till 70 years old, the 35 top years are still the same, but you get an additional ~ 30% added on to what you got at FRA (not sure of the exact %'s off the top of my head).

I am not a SS expert by any means, but I am looking ahead to retiring in a couple of years, so I have been looking at the same scenarios that you are looking at.

Good Luck!

Originally Posted by DreamboatAnnie

Thanks Cactus.....I'd never heard that so it's good to know. So keeping each W-2, or each year's Leave and Earnings statement that shows your Year-to-date totals is not good enough if you want to ensure HR gets it right. Gotta keeps copy of each LES.

That's especially true if you have a prior period when you earned higher pay...like if you lived in area with higher locality pay.

Here is an article showing you how to compute your highest 36 months: Calculating Your “High-Three” Average Salary : FedSmith.com

It looks a little complicated so if you'd rather use an on line calculator give this one a try: FedBens.us: Fast, accurate retirement planning. It should be the 3rd one in the menu.

Another point to consider is that even though your highest 36 months need to be consecutive, the service does not need to be uninterrupted. You can have a break in service.

Kaufmander and uscfanhawaii,

Thank you both for taking time answering my q's.
Fact: Spouse has only total of 31 work years (1 year civilian, 8 years military, 22 fed years by 2016).
We used the worksheet, it looks like it will be reduced by less than $100 for not working between ages 58-62.
Depending on TSP, might wait till FRA..

Here is an informational article on phased retirement for anyone considering that: Phased Retirement: Just the Facts : FedSmith.com

I thought FERS SS is based only on the top 35 years wages earned in federal service (including military if you're combining those years). I will have 33 years of fed service at MRA. My five years civilian wages before federal won't count at all for FERS SS, but they will count for computing regular SS at age 62 or later.

Originally Posted by Skorcher

I thought FERS SS is based only on the top 35 years wages earned in federal service (including military if you're combining those years). I will have 33 years of fed service at MRA. My five years civilian wages before federal won't count at all for FERS SS, but they will count for computing regular SS at age 62 or later.

whenever talking FERS, be sure to use correct terminology, or you will confuse yourself and others. There is no such thing as FERS SS. There is a thing called FERS Supplement. Yes, the FERS Supplement is only based on FERS wages. Rules governing the Supplement can be found in the FERS literature.

Regular Retirement is at your FRA, for most of us either 66 or 67. Early SS is anywhere from 62 up to the FRA, and it is a sliding % scale. Delayed SS starts from FRA to 70, and is also a sliding % scale.

I am pretty sure Maricar has been talking all along about early SS at age 62, and that indeed does count ALL previous SS wages from any source.

checkout this SS link: Early or Late Retirement

Hope this helps! ......and happy retirements all!!