1 National Active and Retired Federal Employees Association

Map Your Path to a Smooth Retirement

A NARFE Federal Benefits Institute Webinar

Presented by

James Marshall

2 National Active and Retired Federal Employees Association

Test Your Knowledge

When is it recommended that you begin preparing for your retirement from federal service?

A. As soon as you begin your federal career

B. About halfway through your federal career

C. At least five years before you retire

D. At least one year before you retire

3 National Active and Retired Federal Employees Association

Test Your Knowledge

When is it recommended that you begin preparing for your retirement from federal service?

A. As soon as you begin your federal career

B. About halfway through your federal career

C. At least five years before you retire

D. At least one year before you retire

4 National Active and Retired Federal Employees Association

How Do You Prepare for Retirement From Federal Service?

Start sooner, rather than later

• Has all of my federal service been documented properly?

• When am I eligible to retire?

• How much money will I receive?

• Will my dependents be protected when I die?

• What are my insurance options?

Can you answer these questions?

5 National Active and Retired Federal Employees Association

Preparing for Retirement Takes Careful Planning of These Sources of

Financial Security

Retirement Benefit

Social Security

Thrift Savings

Plan (TSP)

Federal Insurance

6 National Active and Retired Federal Employees Association

Have You Ever Had Erroneous Retirement Coverage?

FICA Only

CSRS, CSRS Interim or CSRS Offset

FERS, FERS-RAE, FERS-FRAE, TransFERS

Special Group Service

7 National Active and Retired Federal Employees Association

The Federal Retirement Systems

CSRS

1920 1984 1987

FERS CSRS Offset TransFERS

CSRS Interim

2013/2014

FERS/ RAE/FRAE

1935

Social Security

8 National Active and Retired Federal Employees Association

Have You Ever Had Erroneous Retirement Coverage?

Administrative Error

• lasted less than six months

Retirement Error Correction

• lasted more than six months, but less than three years

FERCCA

• Federal Erroneous Retirement Coverage Corrections Act

• Lasted more than three years

9 National Active and Retired Federal Employees Association

Are You Returning to Federal Service After a Break?

Did you previously have 5+ years of potentially creditable civilian service under:

• FICA Only

• CSRS

• CSRS Offset

• FERS

10 National Active and Retired Federal Employees Association

Have You Recently Returned to Federal Service?

If you had less than five years of potentially

creditable federal civilian service AND you were:

rehired in 2013, then you should be FERS RAE

rehired after 2013, then you should be FERS FRAE

11 National Active and Retired Federal Employees Association

Summary of Federal Service

Primary purpose: when employee applies for retirement

Agencies also use this document when an employee requests a record of creditable service for retirement planning purposes

May be requested from your agency retirement office anytime without applying

for retirement

12 National Active and Retired Federal Employees Association

Summary of Federal Service

CSRS SF 2801-1 and FERS SF 3107-1 includes:

• Retirement Service Computation Date

• Name of every agency (civilian and military)

• Dates for each appointment, separation, and conversion

• Name of retirement coverage for each appointment

13 National Active and Retired Federal Employees Association

Summary of Federal Service

Remarks for each period of service include:

• Status of retirement contributions

• Refunded

• Deposit/redeposit paid or unpaid

• Schedule changes

• Full-time

• Part-time

• Seasonal (intermittent, WAE (while actually employed))

14 National Active and Retired Federal Employees Association

Summary of Federal Service

Remarks for each period of service include:

• If federal service not creditable

• Excess LWOP

• Any retirement coverage errors that lasted more than six months

• Special group certification/verification

• Law enforcement

• Firefighter

• ATC

• Congressional

15 National Active and Retired Federal Employees Association

Deposit / Redeposit Service

What is it?

Refunded service?

Non-deduction service?

Is it worth paying?

How much do I owe?

How does it affect my retirement?

How does it affect my surviving spouse?

16 National Active and Retired Federal Employees Association

Test Your Knowledge

What is the most common question federal employees have when attending a retirement planning class?

A. Do I need Medicare Part B if I have FEHB in retirement?

B. When will I be eligible to retire from federal service?

C. Will I have federal insurance in retirement?

D. Who is my agency retirement/benefits officer?

17 National Active and Retired Federal Employees Association

Test Your Knowledge

What is the most common question federal employees have when attending a retirement planning class?

A. Do I need Medicare Part B if I have FEHB in retirement?

B. When will I be eligible to retire from federal service?

C. Will I have federal insurance in retirement?

D. Who is my agency retirement/benefits officer?

18 National Active and Retired Federal Employees Association

Agency Benefits/Retirement Officers

19 National Active and Retired Federal Employees Association

When Am I Eligible to Retire?

Factors used to determine eligibility

• Your retirement system

• Retirement option

• Your age and years of creditable service

20 National Active and Retired Federal Employees Association

Retirement Options

Immediate Retirements

• Regular voluntary

• Postponed FERS (to avoid reduction for early age)

• Early

• Disability (injury from work?)

• Special Provisions (LEO, FF, ATC)

Deferred Retirements (no FEHB/FEGLI/FEDVIP)

21 National Active and Retired Federal Employees Association

How Much Money Will I Receive?

Ask for retirement estimates

Ask for explanations of any applicable reductions

• Part-time proration factors

• Early age

• Unpaid deposit/redeposit service

• Spousal survivor benefits

• CSRS Offset

22 National Active and Retired Federal Employees Association

How Much Money Will I Receive?

Are you eligible for the FERS Supplement?

• If so, are you planning to work elsewhere?

• Retiring in June, October or December?

• No COLAs

What if you continue federal service to 62?

• FERS supplement versus 1.1% factor

23 National Active and Retired Federal Employees Association

Will My Dependents Be Protected When I Die?

Beneficiary forms

• CSRS SF 2808

• FERS SF 3102

• SF-1152 Unpaid Compensation

• SF 2823 FEGLI

• TSP-3

May 2017 webinar:

• Estate Planning for FEDS

“Be Prepared for Life’s Events”

• NARFE F-100

24 National Active and Retired Federal Employees Association

Will My Dependents Be Protected When I Die?

What if I separate federal service mid-career?

What if I’m married when I retire?

What if I’m not married when I retire?

Spousal survivor benefit options:

• Full

• Partial

• None (warning about FEHB if married to non-Fed)

• July 26, 2018 webinar: “Survivor Benefits: Ensure Your Peace of Mind”

25 National Active and Retired Federal Employees Association

What If I Go Through a Divorce?

What will the court order say?

If federal benefits will be awarded to the former spouse:

• OPM Handbook for Attorneys

• Court-Ordered Benefits for Former Spouses

26 National Active and Retired Federal Employees Association

What Are My Federal Insurance Options?

FEHB Federal Employees Health Benefits

•How is my family affected if I pass away while federally employed?

•Available to keep with Immediate Retirements

•Must be covered for last five years of federal service

•What if my spouse is also a Fed?

•What if I have TRICARE?

FEGLI Federal Employees Group Life Insurance

•Basic plus optional coverage

•Can reduce coverage anytime

FEDVIP Federal Employees Dental/Vision Insurance Program

FLTCIP Federal Long Term Care Insurance Program

27 National Active and Retired Federal Employees Association

Social Security

Earnings test until you reach your FRA

What if you continue federal service beyond your FRA?

• No longer subject to earnings test

• CSRS isn’t subject to WEP/GPO until retirement

• Born before 1954?

• Consider filing restricted application at FRA

Smaller payment sooner vs bigger payment later

March 22 webinar

• Social Security and Feds: What You Need to Know

28 National Active and Retired Federal Employees Association

Thrift Savings Plan

Retirement savings & investment plan for federal employees

Similar to 401(k) and 403(b) plans

Two ways to save: Traditional vs Roth

Contributions: TSP-1

• Agency matching for FERS employees

Catch-Up Contributions: TSP-1-C

29 National Active and Retired Federal Employees Association

Thrift Savings Plan

TSP-60 and TSP-60-R Request for Transfer into TSP

TSP BK 30 Managing Your TSP Account

• Compact guide

TSP BK 8 Summary of the TSP

• Comprehensive booklet

In-Service Withdrawal Options

• Loans

• Withdrawals (age-based vs hardship)

30 National Active and Retired Federal Employees Association

Thrift Savings Plan

Post-separation withdrawal options

• Partial vs Full

• IRS required minimum distribution (RMD)

Upcoming changes = more flexibility

• More details to follow in your March issue of narfe magazine

April 26 webinar

• TSP: Maximizing Your Retirement Savings

31 National Active and Retired Federal Employees Association

Path to a Smooth Retirement

Early in your federal career:

• Attend a new employee benefits orientation

• Learn how to calculate your own annuity

• Make sure you are in the correct retirement system

• Start saving as much as you can afford to save in TSP (at least 5% or more)

• Consider any deposit/redeposit options

• Always maintain a copy of your entire OPF

• Consider keeping important pay statements

• Change in payroll office

• Upon separation and/or transfer to new agency

• If part-time, keep statements if working more hours than scheduled

32 National Active and Retired Federal Employees Association

Path to a Smooth Retirement

In the middle of your federal career:

• Keep your beneficiary forms up to date

• Verify that your agency has all of your federal service history documented properly

• Request a Summary of Federal Service, if necessary

• Request an agency estimate, if possible

• Take a mid-career retirement planning class

• Recommended at least once every five years

• If leaving federal service in mid-career, run multiple annuity estimates to help with decision

• Consider FEHB/FEGLI coverage at least five years prior to your eligibility for Immediate Retirement

33 National Active and Retired Federal Employees Association

Path to a Smooth Retirement

At the end of your federal career, if you haven’t done so already:

• Start requesting estimates from your agency retirement office at least five years before you are eligible to retire.

• Take a pre-retirement planning class.

• If previously decided not to pay deposits/redeposits, check again to verify whether they are worth paying or not.

• Make sure you still have copies of everything in your OPF

34 National Active and Retired Federal Employees Association

Path to a Smooth Retirement

When you are seriously ready to retire:

• At least a year before you retire, start narrowing down the best date to separate

• February 22 webinar:

• What’s Your Best Retirement Date?

• Ask your agency retirement office where you can obtain the retirement application forms and when they recommend that you submit them

35 National Active and Retired Federal Employees Association

Path to a Smooth Retirement

Once you submit your retirement application:

• Ask your agency for a timeline of what to expect

• When will you receive copy of retirement package?

• When will you receive your last agency payment?

• Lump-sum payment of unused annual leave?

• When will you hear from OPM?

• When can you expect your first retirement payment?

• How long might you be in interim pay status with OPM?

36 National Active and Retired Federal Employees Association

Path to a Smooth Retirement

Once your annuity is finalized:

• Double check to be sure it’s accurate

• Establish your OPM annuitant account with Retirement Services Online (RSO)

• Login at least once a year

• Stay informed with NARFE

• And finally…

37 National Active and Retired Federal Employees Association

Enjoy Your Retirement!