Retirement (FAQ)

Stevo62

Member
Messages
31
If

Whoever told you that is correct, here’s the OPM fact sheet that lays it all out but it only differentiates between pay status (which you are in) and non-pay status (which impacts your retirement, leave, etc.)

I believe there are 2 separate issues here. 1. yes you are in a paid status and receive service credit and 2. What percentage you get of the 1.7 or 1% for the year due to the lwop. I seem to remember some people in my facility who worked 3 days and took 2 lwop and were told they old got 60% credit towards their retirement % and a full years service credit
 

MJ

Administrator
Staff member
Messages
2,726
To be in non pay status you have to be not be in pay status for the entire pay period, but all that means is some benefits don’t get stopped. Eg: you can’t contribute to tsp if you make no pay (non pay status), but that just means you and the govt only contribute based on what you actually were paid. Except for pay/non-pay status, all non-pay hours are aggregate for the year.

leave is different; lwop accumulates on a revolving 80 hr basis for the leave year, regardless of when it’s taken. Every time 80 hrs is accumulated, no leave is earned for that pay period. 79 hrs lwop / year = no leave lost.

for retirement/ scd time, as long as you work 6 months a year, there is no loss of time, like losing a year of creditable service for retirement.

life insurance continues for 12 months of non pay status without extra cost. Must of 4 consecutive months of pay status to reset that timer. Health insurance is the same, except you owe the premium.
 

Stinger

Moderator
Staff member
Messages
1,494
Does anyone know how the requirement to retire at 56 works? Do you legitimately have to retire on your 56th birthday?
You're not able to maintain currency and work live traffic after the month you turn 56. If your 56th birthday is February 10, 2021, your mandatory retirement date is February 28, 2021. This includes CPCs and Supervisors.
Support specialists, Ops managers, ATMs don't have the mandatory retirement date, but are still restricted from working any live traffic following the month they turn 56.
 

N737ER

Member
I ♥ pointSixtyFive
Messages
54
How long do I have to work to get health insurance for retirement? Is it the same amount of time to get the full FERS benefit?

I’ve heard you need to carry gov’t health insurance for the 5 years prior to retirement to be elligible in retirement. Never seen a source so take it as the hearsay it is.
 

Plusorminus

Member
Messages
32
So I'm pretty new to the fed govt and I don't fully understand our retirement system. I know we fall under FERS and we're enrolled in TSP. Is our retirement system pretty much the same as any other govt employee? And any advice to anyone young and new to the agency/gov service?
 

GulfBravoPapa

⭐SuperStar
Messages
1,430
So I'm pretty new to the fed govt and I don't fully understand our retirement system. I know we fall under FERS and we're enrolled in TSP. Is our retirement system pretty much the same as any other govt employee? And any advice to anyone young and new to the agency/gov service?
As soon as you are financially able to max out your TSP
 

Mike Kilo

Legendary Member
Messages
2,285
So I'm pretty new to the fed govt and I don't fully understand our retirement system. I know we fall under FERS and we're enrolled in TSP. Is our retirement system pretty much the same as any other govt employee? And any advice to anyone young and new to the agency/gov service?
The main difference is that instead of 1% for each year you get 1.7% for the first twenty years from the pension. This is referred to as “good time” and we get it because we are forced to retire at 56. Essentially 14 years of government service added to your pension and it’s amazing. (Which is why old people requesting waivers need to be kicked in the nuts). The other part right now is the social security supplement (might be available in 25 years??? Lol) that bridges the gap between 56 and the time we will be eligible for normal social security. Or maybe just 56-59, can’t remember exactly.

I second maxing out the tsp. Right now that’s $19,500 and not the easiest to stomach on entry wages. I put all my pay raises into it until it was maxed.
 

Dontbotherme

Forum Sage
Messages
788
This is what I’ve been told by some older sooner to retired controllers who went to one of the union retirement briefing…
The social security supplement is paid, by the Agency, from the time you retire until age 62. Any other outside employment income doesn’t come into play until age 57. Then, it is means tested at age 57 based on what outside employment income you make. (Example: retire at 50, receive pension, supplement, and take a job as a contract controller. That contract job income won’t factor into whether your supplement is reduced until age 57. At that point, it is means tested and based on the amount may reduce your supplement). Also, that supplement doesn’t receive any annual raises given to social security recipients. At age 62 when the supplement ends, you decide when you want to apply for actual Social Security (62, 65, 67, 70, or whatever). Pension is 1.7% x first 20 years then 1% each year after that. You can work to your MRA of 57 and make higher, but you need a waiver or to transfer out of being an ATCer. Also, you currently can’t withdraw from your TSP, without penalty until age 50.

So let’s assume your age 62 benefit is $2,317 and your current high three is $165,000. You’ll have 25 years of service at age 48 and 33 years of service at age 56.

Supplement is (number of years/40) x (age 62 benefit) = monthly supplement amount until age 62

Age 48:
Pension- $5,362.50 ($165,000 x 0.39%/ 12)
Supplement- $1,448.12 (25/40 x $2,317)
Monthly pay= $6,810.62 pre tax or any withholdings

Age 50:
Pension- $5,637.50
Supplement- $1,563.98
Monthly pay= $7,201.48

Age 56:
Pension- $6,462.50
Supplement- $1,911.53
Monthly pay= $8,374.03
 

KnockKnock

Active Member
Messages
144
As soon as you are financially able to max out your TSP
So I'm pretty new to the fed govt and I don't fully understand our retirement system. I know we fall under FERS and we're enrolled in TSP. Is our retirement system pretty much the same as any other govt employee? And any advice to anyone young and new to the agency/gov service?
5% to TSP, max a separate IRA, max your TSP. In that order

If you have the HDHP for medical, max HSA after IRA and before TSP
 

Electricfence

Trusted Contributor
Messages
224
Why leave money to your kids? Are you crazy, it's my MONEY and I NEED IT NOW!
It’s sad people think like this. We make way too much money to not have plenty in pension (if it’s there) and social security (if it’s there) without really touching our tsp. Let one make enough during our careers. So yes I’d like to maximize my potential to create generational wealth.
 
Top Bottom