Retirement (FAQ)

I recall reading in another thread here that high 3 includes your time at a facility even if you do not complete training there (Example: Training at a level 11 for a year but then NESTing out, the base pay you had during that time, assuming your salary never reached a high at that point again during the rest of your career, is counted as 1 of hour high 3). Is that true/is there any documentation on that?


Probably wouldn’t workout since the high 3 is averaged over 3 consecutive years. So unless you did it at the very end of your career, odds are at some point the average of 3 consecutive years of salary would be higher if you continued to get raises working at your old facility.

Example you made 60k/62k/100k (trainee and wash). High 3 is 74k average.

If you stay at the same facility and eventually make 74k/75k/76k the high 3 is greater.

You don’t get to take the 75k/76k/100k since it wasn’t consecutive.

Computation
 
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I've either been overlooking or understanding it wrong....I never realized the years being consecutive was a requirement.

I didn’t either till I read the OPM site. Good to know though, I don’t think many people know it.
 
Under FERS system, does trading in unused sick leave for additional creditable service months/years count as "good time"? For instance. If you have 29 years as CPC and turn in 1 year of sick leave upon retiring do you get the 1.7x for 30 years benefit of your high 3 years? Or only the 1.7x20years +1% each additional year of high 3? According to OPM guidance it says it is creditable service, but not whether it is "good time"
 
Under FERS system, does trading in unused sick leave for additional creditable service months/years count as "good time"? For instance. If you have 29 years as CPC and turn in 1 year of sick leave upon retiring do you get the 1.7x for 30 years benefit of your high 3 years? Or only the 1.7x20years +1% each additional year of high 3? According to OPM guidance it says it is creditable service, but not whether it is "good time"
Did you also reach your MRA?
 
Under FERS system, does trading in unused sick leave for additional creditable service months/years count as "good time"? For instance. If you have 29 years as CPC and turn in 1 year of sick leave upon retiring do you get the 1.7x for 30 years benefit of your high 3 years? Or only the 1.7x20years +1% each additional year of high 3? According to OPM guidance it says it is creditable service, but not whether it is "good time"
You cannot sell back a year of sick time to get MRA+30
 
For this example let's assume I did not. It was at age 56
Then, your options are:
- Sell back sick leave at 40%. (Example: 2080 hours of sick leave at $60 a hour is $124,800. Then, take 40% of that to get a payout of $49,920.)
- Add it towards your retirement to get an extra 1%.

29 years of service:
1.7% x 20= 34%
1% x 9= 9%
Total= 43% ($53,664) plus one time cash out of $49,920.

30 years of service:
1.7% x 20= 34%
1% x 10 = 10%
Total= 44% ($54,912)
 
What are the requirements to get the 1.7% for 30 years? Does buy back of military service count ? Ex 25 years worked + 10 years of military time bought back. Would you get 1.7% of 35 years or would you get 1.7% of 20 years and 1% of the remaining 15 years?
 
When you start to receive your pension, do you pay social security/medicare taxes on pension income? I know you obviously pay federal income tax, and state depends where you live. Same with the SS supplement, do you only pay federal income tax on that?
 
When you start to receive your pension, do you pay social security/medicare taxes on pension income? I know you obviously pay federal income tax, and state depends where you live. Same with the SS supplement, do you only pay federal income tax on that?
You do not have to pay SSN and Medicare tax on that, you only pay that on true wages while actively working or rarely on some capital gains. You could win the lottery and that would also not be SSN taxed.
 
Does the 1.7% calculate on "years of ATC service" or "years of ATC CPC service"?

For example: One retires with exactly 20 years of total ATC service but it took 1.5 years to reach CPC.

Which one is it?
1.7% x 20
1.7% x 18.5 + 1.0% x 1.5
 
Does the 1.7% calculate on "years of ATC service" or "years of ATC CPC service"?

For example: One retires with exactly 20 years of total ATC service but it took 1.5 years to reach CPC.

Which one is it?
1.7% x 20
1.7% x 18.5 + 1.0% x 1.5
ATC service
 
Does the 1.7% calculate on "years of ATC service" or "years of ATC CPC service"?

For example: One retires with exactly 20 years of total ATC service but it took 1.5 years to reach CPC.

Which one is it?
1.7% x 20
1.7% x 18.5 + 1.0% x 1.5
It's 1.7% x 20 it's all years of atc good time (training is good time), staff time would be at 1.0%
 
What happens if you leave federal service before you are eligible for retirement? Do you receive any reduced pension/annuity? Also what kind of FERS Lump sum could you expect? From what I've read you don't receive health/life insurance anymore.. The rest I can't seem to find.
 

All your FERS contributions are returned as a lump sum, except if you have five or more years of service you can opt to not do that and instead keep it for "deferred retirement" and draw a tiny pension when you get to retirement age.
 
Then, your options are:
- Sell back sick leave at 40%. (Example: 2080 hours of sick leave at $60 a hour is $124,800. Then, take 40% of that to get a payout of $49,920.)
- Add it towards your retirement to get an extra 1%.

29 years of service:
1.7% x 20= 34%
1% x 9= 9%
Total= 43% ($53,664) plus one time cash out of $49,920.

30 years of service:
1.7% x 20= 34%
1% x 10 = 10%
Total= 44% ($54,912)

Option 3 When you reach 29 years of service tell your facility to show you on sick leave, retire when the sick leave runs out and get both.
 
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