FERS Retirement Benefits | What Federal Employees Should Know in 2023
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- เผยแพร่เมื่อ 23 ก.พ. 2021
- Are you trying to figure out the different FERS Retirement Benefits you will have as a Federal Employee? Do you know where your different sources of income will come from? Do you know how to calculate your FERS pension? Do you know what will be taken out as deductions? In this video, we break down the income you should be receiving as a retired Federal Employee!
Leave us a comment below if you have any more questions regarding your FERS Retirement Benefits!
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Until next time, happy planning!
Micah Shilanski, CFP®
#PlanYourFederalRetirement #FERS
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Postponed retirement allows someone to retire early and not collect pension until 62 in which they would get full pension with no penalties. The best part is you keep your health benefits.
For some reason I had to dig deep for this option, I never see it talked about.
Just retire from the federal government at 62
@@itguru2037 Hope you're doing good financially.
Micah, your energy, enthusiasm, and charisma made this video enjoyable to watch. thanks for breaking down a loathsome subject into something digestible. keep up the awesome work!
I appreciate that! Thank you so much! I know this sounds cheesy, but we are the strange ones that read tax law on the weekends then think about how we can share this with more people to help them. So you are very welcome :)
Thank you so much for this! This is the first time I have been to understand this calculation. My HR is useless.
Our pleasure! We work with a lot of Federal employees who have been searching for information just like this online and are unsure what is accurate. Happy to provide information like this from licensed financial advisors who specialize in understanding federal benefits.
This explanation is very thorough.
There is a lot of misinformation on the internet for federal employees to sort through. That is why Plan Your Federal Retirement is here to help guide federal employees through the complexities of their benefits and understand how the decisions they make today impact their financial plans.
This video is a must-watch for all federal employees planning their retirement! 🌟 The insights on maximizing your FERS benefits and understanding your options for a smooth transition are incredibly valuable. The breakdown of the Thrift Savings Plan (TSP) and how to make the most of it is especially helpful. Thank you for providing such clear and detailed information. Looking forward to more content like this! 💼📈
Thank you!
Don’t keep us a secret! As a privately-owned company, we rely on Feds like you to spread the good word. If you can let one co-worker know about our content you could change their lives!
Thank you for the video. I have a VA job offer and wanted to know what this statement mean?
Federal Employee Retirement System (FERS) = for employees after 1/1/2014, VA contributes 16.6% annually to FERS-FRAE basic defined benefit. Thanks so much!
Thank you for the video. Is it the high-3 of the base salary or of the base+COLA salary that is used in the pension calculation formula? Thank you.
Great question! "Basic pay" for calculating your High-3 includes your salary, shift rates, and locality pay. It does not include COLA, overtime pay, and bonuses.
You need to teach people that FERS go by whole years, I started in the Postal Service Oct 1985 & retired in March 2019. I did not know FERS round up. I only got credit for 33 years. FERS when from January 1986 to December 2018. If I knew this I would of retired in December
Is this true?
@@seankmath2214 Assuming that the postal service doesn't have some crazy requirement different from the rest of Civil service, this is not true. There can be hits on your credible service that will change your service comp date used for retirement annuity calculation, but generally you get credit for every day you work. In any case, your agency and OPM will give you your estimate and all factors used in the calculation prior to pulling the trigger. I retired from DOD last July and had to buy back three years and nine months of withdrawn service time. All the OPM calculations to accomplish this were spot on. You just need to plan ahead and start communicating at least six months before you plan to retire.
They calculated me at 21 years and 1 month. If you don't have a whole month you lise those days. My actual time is 21 years, 1 month and 13 days. I would lose the 13 days.
Always retire at the end of the year
I don't see RSCD in the description... where do you find the RSCD? Does sick leave accrued at retirement count towards RSCD?
I’m retired military and 100% permanent and total VA disabled VET. I’ve been working for the federal government for 12 years and I’m currently 51, could I resign from the federal government now at age 51 and still receive a reduced pension when I reach MRA age?
Will statements go out for 2022 statement? OPM has no sen out no statement. Thanks
what about special category employees?
You touched on the pension portion of the FER which does not include SS benefit and TSP. I am really curious if the SS benefit portion is just referring to the standard social security that all working Americans receive after retirement or is that a special/additional social security for federal employees?
Same as social security, at least for FERS retirees
i started at the veterans administration when i was 20yrs old. I quit when i was 33 yrs old. Will I get a pension? Thanks
I’m a title 38 employee and currently make $150k which 30k is overtime. I know ot doesn’t count towards calculating but what about my differential pay which is another $25,000?
What is a federal retirement counselor, what do they do for the employee and how do I get one?
Its quite easy.....I got two within this covid period
You can indicate your interest of you need help
To have a good retirement, you MUST max out on the TSP and put 100% into the C Fund as soon as you can in your career. It’s a slow grind and has ups and downs as the market fluctuates, but you will eventually have 100s of thousands of dollars.
Please explain
@@shanarobinson7672 Of all the funds in the TSP, the C Fund has the best return (10.8%) over the long term of decades. The S Fund is a close 2nd at 10.6%. However, over the last 10 years the S Fund has underperformed at 8.8% annual average. You could go 80% C and 20% S. The important thing is to contribute at least enough to get ALL the government matching money. If you can contribute more then even better. What I did was up it just before I was getting a raise or a Cost of Living Adjustment (COLA) and then I never missed the money. Of course, if you are trying to buy a home, that is a very important. Also, if you already have money in the G Fund or F Fund or an L Fund, you should move that over to the C Fund and stop contributing to those funds.
@@shanarobinson7672 Which part do you need an explanation?
1. Good retirement
2. Why only C Fund
3. Market fluctuations
4. Having 100s of thousands of
@@glasshalffull2930 I would like to know why only "C"? I have always heard "CSI". TIA!
@@rnmom65 Historically, over the long term the S and I have performed below the C fund. Now, the past is no guarantee of the future, but it sort of like betting on Tom Brady to not win a Superbowl. The I fund especially has weak long term returns of about 5%. (Also, 46% revenue of C companies are from international sales and so the C Fund is basically already in the international market) I could see 20% in the S Fund to capture some great years. The important thing is at the beginning’ of your career to stay away from the G,F,I and L funds. Having these at the beginning of a 30 year career are just a drag on your portfolio. BTW- I started as a fed employee in 1985 and stayed 100% C once I was ‘educated’. When the S Fund was first introduced, its performance didn’t look as good as the C Fund and that’s why I stayed 100% C.
Great video! Question: Does working part time, say 20 hours per week, count towards FERS pension calculation? I am a medical provider and am thinking about working part time for 6 years to be eligible for the pension. Thanks.
The employer contribution for medical is reduced in kind. Likewise your time in service would increase based on your 50% employment (you'd get half a year of credit per year worked at half time)
HELP! I'm an retired army vet and my ex is getting 42% of my military pension. I just became a federal employee and am no longer getting that retirement check. Does this mean my ex now gets nothing from me (ha ha) or can she try to get social security money from me?
Login is a real chore at times
I just noticed that he didn't mention that FERS employees pay into the pension . If they die prior to retiring their estate does not receive the money which they paid into the pension . The money stays in the general pension fund . I would like to see that rule changed . The money could at least be given back without interest .
People dying before they can collect is one of the things that helps keep these funds afloat.
what about the social security supplement I have 36 years and retiring at 56.5 getting the sss from 56.5 till 62
I get 900.00 at 58 till 62.
The formula is: SS benefit @62 X # years of service ÷ 40= Supplement.
Do you get SSS if you retire at 57 with 27 years of Fed. Gov. service?
Thanks for the video. Very informative! I have one question for you please.
I’m a Postal worker and when I started there was a hiring freeze. I have been working at the PO for 17 years but only ten are counted towards my retirement. Is there a buyback program that allows me to get those years counted for?
Possibly. We would recommend reaching out to your local HR to see if they can look into this further for you.
@@planyourfederalretirementthank you for responding to my question. God bless you!
FERS retirement wont even pay mortgage payment.
Usps employees is can retire with 25 hrs of service
What if you have 20+ yrs then you left the government job under 50yrs old. then you turn 57 or 62... ofcourse that's not continued work service till the retirement age.... are you still qualified to claim that pension?
Thank you for your question. Please send us your contact information on this form plan-your-federal-retirement.com/submit-questions/ so we can have one of our advisors contact you and provide you with detailed information regarding your question.
The PYFR Social Media Team
Question; if Im part time status, but Im working 40 hours per week. When I retire do they go by part time status or the money I actually earned??
1% Credit per year prorated based on time served compared to full timer but the high 3 calculated as if full time for last three regardless if parttime
Thank you, maybe considering not having background music, it is very distracting.
does high 3 included locality pay or just base?
Thank you for your question. Please send us your contact information on this form plan-your-federal-retirement.com/submit-questions/ so we can have one of our advisors contact you and provide you with detailed information regarding your question.
The PYFR Social Media Team
It includes locality pay.
I did almost 22 years in the military and receive retired pay from that service. I also have 14-1/2 years of civil service. I'm 60 and was planning on retiring @62 and will have 17 years of federal civil service at that time. Are there any surprises awaiting me as in not reaching a full retirement even though my total federal employment will be almost 39 years?
You can’t have both.
I'm going to disagree a little bit here :) You can have both and its great! You can absolutely have a full military pension and your FERS pension. Now you can't generally 'double dip', meaning your military time counts for the military pension and does not count for the civilian pension and vice versa.
I would make sure you are squared away on your service time by getting a Certified Summary of Federal Service. But if all of your time is good, then you get both! Well I should say all 3 as I'm guessing you are getting some VA Disability pay as well with your pension?
@@planyourfederalretirement if you add 22 and 17 it’s 39. He either gets 39 years of FERS if he pays back his time or he gets 22 years of military retirement and 17 years of civil service. The calculation is different between the two scenarios. Hence my statement.
You did not list how to verify the credible years
I'm going to school for data science, I am a veteran with 4 years of service. Does my veteran service transfer? I want to work for the government again I feel purpose
You can "buy" your military time (costs like 3% of your total military pay) to add those 4 years to your service time. Well worth it if you remain in government service long enough to earn a pension.
They have a good video on that topic at: th-cam.com/video/2R_2ky5nZaM/w-d-xo.html
Does military time contribute to this or is it separate.
I believe military time is separate. You'd have to buy back your time for it to count towards retirement. In my case, my military time does count towards total years of federal service when it comes to calculating how much leave I earn every pay period. I don't think it counts for retirement though unless you buy back your time. I hope this helps.
So I am retiring in a couple months with 30yrs service at 60yrs old. Truth there is a small penalty for not retiring @62. But I am eligible for an “Annuity Supplement” of $617 untill I reach the age of 62. So is there any negative to that?
We wouldn't see it as a negative, just a trade-off. Ultimately it comes down to your cash flow needs and retirement timing.
We would just recommend confirming that your pension produces enough cash flow after age 62 when the annuity supplement stops.
Look this isn’t rocket science. Just retire at 62 from federal service with no debt, start collecting social security, and move to Florida. Done. I did this.
I don’t wanna retire at 60.. just seems like your mworking your life away I’d rather retire at 44yrs old with 25 yrs of service.. idk maybe thats crazy but 60 is to old..
What is federal employee
@@zacd7094 I’ve known a several guys who retired at 50 and younger and they have all become discontent and moody
@@zacd7094 You’ll get bored 😂
I would have loved to but corruption is so out of control people are being forced out early
I was a merchant marine so they made unlicensed merchant marine jobs 5 year schedule A jobs for high turnover ease of hiring and firing
So after I had done 10 years in a schedule A 5 year tech job they started trying to not pay me and force me out
Here's the thing, This system was design as a three legged system. What are they going to do to make up for the loss of 21% of Social Security if it's not fixed by 2035?
There is a lot of speculation on how Social Security might change and what benefits will be available. If you would like to discuss potential strategies to navigate this uncertainty, schedule an appointment with one of our Federal Benefits Specialists. zurl.co/mcVK
would this be for Border Patrol Agents?
Hey Joann, I appreciate the question! We are currently routing our answer through our compliance department. Unfortunately, this is never a timely or quick process, but unfortunately something we have to do. We hope to get you this answer as soon as we can. We appreciate the patience! Thanks!
No, They are under special provisions.
I wish I could just opt out of FERs and invest the money they take instead. FERS seems like a scam
Damn that retirement amount sucks.
Happy to provide content like this. In fact, it is kind of what gets us out of bed in the morning! We love talking to Feds and helping them navigate their complex benefits.
Do you like your job?
Lol, stool 😂
2,000 annuity the first year shrinks to 800.00 at 62 years old? State tax insurance you'll Have enough to buy groceries for the month. 😂 They don't want us to ever get ahead. It's eaiser to control us.
I like this guy but his white board handwriting is atrocious. He is saying "and" and then means to write an ampersand, but he is writing the Greek symbol for proportional, I believe Gamma. He doesn't mention SSS from 56 to 62, which is about 75% of full SS at 62.
FERS retirement pay is a stool.
I started at 19 and I’m 23 I’d like to retire at 44 ( 25 yes of service). I just wonder if anyone has done it. I just don’t want to work when I’m 60… your throwing your life away for 4 or 500 bucks extra a month..
Love the thought of planning early on retiring early! A lot of people have done this before, the big thing that I see is don't think about it as retirement, but financial independence. Why do I say this? Well a lot of clients we have retire early (before 55 and even in their 40's) realize they are not 'done' yet and they still want to contribute to working. So they end up getting another job after they retire. So if you want to plan to be financially independent go for it, then maybe that gives you the freedom to choose what you really want to do?
@@planyourfederalretirement yeah, that would definitely help me if I want to become self employed. I’d have a retirement already waiting for me.. just stink you have to wait until 62.. at that point I’d feel as though I spent 43 year working so that I could enjoy the 10? Maybe 15 years? I’m really trying to grasp it but I know your right also!
You can't retire from feds at 44 with 25 years of service. You need to meet the requirements age and time. You have to be 50 with 25 years of service.
@@mishka5706 you can retire at any age with 25 yrs of service if there is a reorganization. Happened to the guy before me. It would be like hitting the lottery but I’ve got hope. That would put me at 44.
Will they even exist in 3 years I don't think it will. Trump can do some very nasty things as he demonstrated with his payroll tax deferral
Cry about it
Fers is a joke and an insult!!!