GovernmentExecutive.com

Return to Article: Basic Retirement Computations

• 40778
  

  Is the high three computation based on actual salary, or just the base pay (before adding in the locality pay)? I keep seeing references to "basic pay, without overtime and bonuses." "Basic pay" is also the phrase used on my SF-50 for salary before locality pay is added. Can you clarify? Thanks.

  Jean Ackerman Posted January 4, 2008 11:25 AM
• 23610
  

  I have heard different accounts about the Social Security that I have paid into SS. I have my 60 quarters paid into the system. It has been my understanding that since I'm in the CSRT, that money is gone. Now hear from a SS counselor it's my money and I get it back. Is this so and how do I,in fact, get it back. I will be 65 when I do retire from FEMA w/30 years service.

  lawrence sanders Posted May 18, 2007 12:36 PM
• 22979
  

  Over 30 years ago I was given a simple mathematical formula to calculate, under CSRS , the % for a person's service years. Total years service minus 2 then muliply by 2 and add .25.

  Example for 34 years service: 34 - 2 = 32 X 2 = 64 + .25 = 64.25%

  Paul Traynor Posted May 9, 2007 10:30 AM
• 22947
  

  For FERS retirees, there's a little bonus if you retire at 62. You receive 1.1% rather than 1%. That doesn't sounds like much but it adds $2000 per year to a $20000 pension.

  Peggy Dymond Posted May 8, 2007 7:55 PM
• 22894
  

  You should request a retirement estimate from your agency's human resources office at least a year before you plan to retire. This estimate will be prepared by a trained retirement specialist who works in your agency's human resources office. She or he will use sophisticated retirement software to provide you with an accurate estimate based on your personnel records and payroll information.

  Why should anyone have to request a retirement estimate. It should be provided each year just like a SSN statement, for both CSR and FERS.

  Donald Hornsby Posted May 8, 2007 10:42 AM
• 22886
  

  Every agency has the responsibility to provide employees with retirement "counseling" in the form of retirement estimates and answering retirement-related questions. This is generally based in the HR office and sometimes there is a dedicated staff of retirement benefits specialists who handle these duties. Contact the HR office and find out where your agency provides these services. If you use an "online" benefits service, there is a place on these systems to "request a retirement estimate" Good luck!!

  Tammy Flanagan Posted May 8, 2007 8:56 AM
• 22884
  

  The EBIS and GRB calculators that are "do-it-yourself" versions of the software used by HR offices are great for making projections and looking at "what-if" scenarios (what-if I become disabled, what-if I'm offered early retirement...). The problem for someone who is actually planning to retire is that there may be other issues that will appear only after a review of the employees personnel folder (maybe they have some service that wasn't covered by retirement deductions, maybe they worked under a part-time appointment for some time...) and these won't show up on the EBIS (or other) system. All employees who are setting their retirement date should do so after getting an estimate from HR for that specific date.

  Tammy Flanagan Posted May 8, 2007 8:53 AM
• 22831
  

  It keeps being mentioned that it is important to request a retirement estimate from the Human Resources Office about a year before you retire. I have researched and cannot find how to go about making this request. I've looked on HRConnect and other areas. Can you give some guidance?

  Debra Housley Posted May 7, 2007 2:24 PM
• 22759
  

  We received a letter from our Agency, That we would receive 27 pp this year.We would have a extra pp in our base pay. Would this be used in computing our high 3 salary for retirement, if I retired on 01/03/2008.Do they actual use your base pay earned or what your "52" says your base pay is for that year. Thanks Larry Rose

  Larry L Rose Posted May 7, 2007 7:07 AM
• 22708
  

  I do not remember any mention being made about the retirement calculator used on EBIS. Is this not a good and reliable way that government employee's can do estimates and what if scenarios? Can you comment on the pros and con's on your next column in government exec "retirement planning".

  Edgar Hernandez Posted May 4, 2007 12:54 PM
• 22704
  

  Would you please clarify in your weekly retirement planning column whether retirement income(CSRS vs. FERS/Social Security)is subject to Federal/state income tax?

  Thanks.

  Charles Miller Posted May 4, 2007 12:24 PM
• 22698
  

  Thanks for the suggestion to write about disability and worker's compensation. I will do that in the coming weeks! It is something that all workers need to be aware of.

  A law enforcement officer covered under FERS can retire at 25 years (must be 25 years of covered law enforcement service), any age. The computation would be (1.7% x 20) + (1% x 5) = 34% + 5% = 39% of the high-three average salary. I will have more detailed computations available for you next week!

  Tammy Flanagan Posted May 4, 2007 10:49 AM
• 22688
  

  We hear over and over again about retirement computations. Now, tell us all about federal disability retirement and the federal employees' workers compensation program. Federal workers seem to be greatly underinformed about that.

  For many unfortunate people, that is their retirement program. It could become the retirement program for any worker at any time. Federal employees need to know what they are facing should they be injured doing their job.

  Robert M. Posted May 4, 2007 7:35 AM
• 22684
  

  I had a question. Under FERS the law enforcement retirement is 25 years at any age? What percentage of your high three does that become?

  GovExec.com reader Posted May 4, 2007 6:45 AM