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Federal Employees Retirement System (FERS)

Federal Employees Retirement System (FERS). OO-ALC Retirements/Benefits. Agenda. Discuss the basics of: FERS – Federal Employees Retirement System Creditable Service for Retirement Military Deposit Thrift Savings Plan (TSP) Important Program Links. Retirement.

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Federal Employees Retirement System (FERS)

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  1. Federal Employees Retirement System(FERS) OO-ALC Retirements/Benefits “Breaking Barriers… Since 1947”

  2. Agenda • Discuss the basics of: • FERS – Federal Employees Retirement System • Creditable Service for Retirement • Military Deposit • Thrift Savings Plan (TSP) • Important Program Links “Breaking Barriers… Since 1947”

  3. Retirement • FERS – Federal Employees Retirement System • Three tiered retirement system • Federal Employment Retirement System (FERS) (monthly annuity for life) • Social Security • Thrift Savings Plan • Annuity or Pension = Retirement Pay “Breaking Barriers… Since 1947”

  4. Example of Retirement Pay • FERS = 1% per year • (Exception) At age 62 with 20 or more years of service; retirement is calculated using 1.1% • (% x High 3 x Years and Months of Service) • Example (Gross for $75k): • FERS Annuity = $1700 at retirement • Social Security = $1300 at age 62 = $3000 • After Insurance and taxes = $2100 • TSP = It’s up to you! The more the better! “Breaking Barriers… Since 1947”

  5. CREDITABLE SERVICE • Non-deduction Service (usually Temporary service) • Federal civilian service where no retirement deductions were withheld. This is also known as FICA service. • If Service was prior to January 1, 1989 • Deposit required for both eligibility and annuity computation • If Service was on or after January 1, 1989 • Not creditable for retirement eligibility or annuity computation • Deposit cannot be made. “Breaking Barriers… Since 1947”

  6. CIVILIAN REDEPOSIT SERVICE • Refunded Service • If you were paying into CSRS or FERS, QUIT and pulled your retirement contributions • Redeposit service if NOT paid • The Time is used for retirement eligibility • Redeposit service if redeposit IS paid • Creditable for Time and Annuity purposes “Breaking Barriers… Since 1947”

  7. Military Deposit • The benefit to paying a few years of Active Duty service is to have that time count towards your Civil Service Retirement Annuity (Title 10 only) • The pay back amount gets more expensive over time due to compounding interest (interest is at variable rate) • Each year you pay back gives you “on average” about $70 to $100 a month more in your annuity check • Example: 4 years of Active Duty could be up to $400 a month more in your FERS Annuity “Breaking Barriers… Since 1947”

  8. Military Deposit • Log into MyPers: https://mypers.af.mil and type “Military Deposit” in the search engine, follow instructions • The process will take 6 months to a yearto find out how much you owe “Breaking Barriers… Since 1947”

  9. Thrift Savings Plan - TSP • TSP Contribution Funds: • G = Government Securities • F = Government Corp and Mortgage-backed Bonds • C = Common Stock (Large/Med Sized Companies) • S = Small Capitalization Stock (Small/Med Sized) • I = International Stock (20 Developed Countries) • L = Life Cycle Funds (Invested in G,F,C,S, and I) • You elect your Contribution amount in: EBIS • You elect your Funds in: TSP.Gov “Breaking Barriers… Since 1947”

  10. Thrift Savings Plan - TSP • TSP Contribution Funds: “Breaking Barriers… Since 1947”

  11. Important Program Links • MyPers: https://mypers.af.mil(Guidance for everything) • EBIS(Changing FEHB, TSP, FEGLI) • https://ww4.afpc.randolph.af.mil/ebisii/login.aspx?poeid=118971120 • MyBiz(Your record past and present) • https://compo.dcpds.cpms.osd.mil/ “Breaking Barriers… Since 1947”

  12. Questions? Breaking Barriers …Since 1947

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