What issues should an employee consider in making his/her decision?

OPEN SEASON GUIDE

What issues should an employee consider in making his/her decision?

"They should think about whether they expect to retire from the government. CSRS is a very good system for people who make a career out of federal service, but if you leave before retirement, you may be better off transferring to FERS.

"Even if you expect to retire from government service, you need to think about when you want to retire. In some cases, if you switch to FERS, you can retire earlier than you can if you stay under CSRS. In other cases, you may have to wait a little longer under FERS to retire.

"Another consideration is your ability to save. If you switch to FERS, it is essential that you take advantage of the Thrift Savings Plan. Can you contribute 3 to 5 percent of your salary to the TSP, and can you sustain that contribution level until you retire? That is, do you expect to have other financial responsibilities in the future like college expenses, or caring for elderly parents that may affect your ability to save? And, of course, the more time you have until retirement, the more your TSP balance can grow.

"You also need to look at the impact a switch to FERS would have on your entitlement to a Social Security benefit. If you switch to FERS, will you work long enough to qualify for a Social Security benefit -- either based on your own earnings, or the earnings record of your spouse?

"Other issues an employee may want to consider are survivor protection, inflation protection and disability protection."

-Mary Sugar, chief of the Office of Personnel Management's Agency Services Division

Return to open season guide

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download
  • Federal IT Applications: Assessing Government's Core Drivers

    In order to better understand the current state of external and internal-facing agency workplace applications, Government Business Council (GBC) and Riverbed undertook an in-depth research study of federal employees. Overall, survey findings indicate that federal IT applications still face a gamut of challenges with regard to quality, reliability, and performance management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download

When you download a report, your information may be shared with the underwriters of that document.