The Earnings Test for Your FERS Annuity Supplement
The only thing 100% clear about the FERS annuity supplement is that it ends at age 62.
Federal employee retirement news: news about retirement-related topics as it pertains to employees of the federal government. Topics include FERS, CSRS, the latest TSP performance, annual COLA updates, and more.
The only thing 100% clear about the FERS annuity supplement is that it ends at age 62.
If you’re close to retirement, you’ve probably calculated your FERS or CSRS Pension. But did you remember to consider these important reductions in your retirement planning?
In preparing a Federal Disability Retirement application, a change in a medical diagnosis may require an amendment to the application. In such instances, should a change be implemented?
Should you do a Roth conversion to take advantage of the current tax rates which may be lower now than they are likely to be in the future? It may be a good idea but check out the details before you take action as your tax bill may be higher than you think.
If you were offered the chance to leave federal service with a buyout or an early out, are you prepared to make the right decision?
OPM should pay new retirees 100% of the retirement estimate provided by the employing agency. In those few cases where this turns out to be too much, OPM can easily make deductions from future payments. And when the estimate is too low, they can pay more, to catch up. Either way, equity will be served.
Over the years, OPM (Office of Personnel Management) processing time for calculating annuities for new retirees has gotten progressively worse. Is it the increasing workload that is causing the problem? Here are the statistics.
Former Director of OPM Linda Springer predicted a “retirement tsunami” that never materialized. It hasn’t happened. But the reason it didn’t happen is that she did not predict the financial meltdown that occurred. Her prediction was probably accurate–her timing was just off.
There’s an important factor most people overlook when they choose monthly TSP payments in retirement. You can choose how much you take out each month – but you don’t get to choose HOW the money comes out. Don’t let this catch you by surprise.
A number of readers have asked about the backlog in processing retirement applications. OPM is making progress. The time it takes to process a retirement action has improved by about 15%. The agency’s goal is to get the processing time down to 45 days.