Return to Article: When to Retire

By Tammy Flanagan National Institute of Transition Planning July 20, 2007
  • 65821

    I will be 67 years old and would like to retire in jan 2010. I will have 240 + 208 in annual leave at that time. the Leave year ending date is on Saturday 1/2/2010. Firday is a holiday 1/1/2010. can I retire on a saturday? Help needed in selecting the proper date for getting the annual leave max or the date best for me. I will have 40years-4 months and 9 days. My CSRS Benefit Estimate Report prepared by OASAM shows a retirement date of 1/3/2010.

    Walter Cienaski Posted January 3, 2009 8:49 AM
  • 58638

    I plan to retire 2 Feb 2009 so that I am solidly in the 2009 tax year in order to be at a lower tax bracket for selling my 240 hrs leave. The thought occured to me that if I move my retirement date to 1 Apr 2009 that the extra 3 months of 2009 salary may increase my high-3 computation. Can you comment please?

    r/, Ed Stroh

    Ed Stroh Posted September 17, 2008 6:51 AM
  • 50210

    "Your lump sum annual leave payment also is not considered earned income since it was "earned' prior to your retirement." This is a direct quote from your article. Are you sure lump sum annual leave is not considered earned income? Perhaps not since they tax it like it was a gift tax or something. Do you know what the tax factor is on leave sold?

    Billy Davidson Posted May 7, 2008 3:19 PM
  • 49010

    I have 32 years of service under CSRS and I am 60 years old. When I retire I will have no sick or annual leave. If I plan to retire in October 2008 when will I receive my first retirement Pay.

    Shirley M. Graham Posted April 21, 2008 11:26 AM
  • 47755

    I can retire August 2009 but was planning on staying until January 2010. I am a CSRS with an Annual leave balance of 440. Can I take my lump sum of annual leave with an additional 208 hours for 2009 if I don't use any annual leave? Also, when is the best date in 2010 to retire because Jan 1 is a Friday, with the 2nd and 3rd on Sat & Sunday?

    Kyle Caponi Posted April 2, 2008 10:41 AM
  • 45449

    On 8/13/08, I'll meet the age and time requirements under CSRS, can I retire 08/01/08 or should I wait until 09/01/08?

    Carol Posted March 7, 2008 2:23 PM
  • 40860

    I'm retiring in Jan 2009 and would like to do it on the 3rd but this falls on a Saturday will this affect me retiring on the 3rd or do I need to retire on 12/31 a wednesday. I'll be 66 years old with 39 years service. I want to carry over 240 + 208 for annual leave.

    Question: Whats the best adate to pick in Jan 2009 to get the best deal

    walter cienaski Posted January 6, 2008 8:06 AM
  • 35608

    Section 1107 of the House Version of the FY 08 National Defense Authorization Act would allow retirement annunities to commence the day after retirement for DoD civilian employees. This would spread out the retirement dates across the month

    Charles Gainor Posted October 22, 2007 9:08 AM
  • 33884

    I will be 66 on 10/27/09 and will have 5 years of Federal service in on 01/24/10. Would it be best to retire at the end of January 0f 2010 or wait until I have 1 pay period at my next pay step? What Insurance options will I have available when I retire? I have Blue Cross Insurance now enroll code 104. Thanks.

    Coulson Blair Posted September 26, 2007 7:21 PM
  • 32559

    I have 35-1/2 yrs CSRS and am 60-1/2. I have been offered a buyout and can stay working till the spring. It appears to me the 1st 3 days of April would probably be the best time to start retirement. Do you agree? Thank you.

    marilyn krautkremer Posted September 9, 2007 8:21 PM
  • 31177

    I am under CSRS and will have 34 yrs on 10/14/07. I must work a minimum until Jan, 2009 for health insurance purposes to continue into retirement. That would be the earliest I could consider retiring but I'm thinking I'd like to achieve the 40 yr mark, i.e, 10/14/2013. If that were the case, would it be better to retire, for example, Nov. 1, 2013, Dec. 31, 2013, or Jan. 1, 2014. Even with everything I'm reading, I am very confused and our HR dept isn't much help, especially with this type of inquiry so far in advance. Can you provide me with some more specific guidance? Thank You.

    Fran Savickis Posted August 17, 2007 10:35 PM
  • 31112

    In my agency you must work on the last day of the fiscal year to receive a performance bonus. If I retire on September 28, is that the last day of the fiscal year or should I retire on October 1, 2007 to be sure?

    Danny Childers Posted August 17, 2007 7:51 AM
  • 30537

    I am a CSRS employee and I've been planning to retire on February 29, 2008. But you didn't select that date nor did you select March 3 as best dates to retire for CSRS. Am I making a mistake? If I retire on February 29, when will my retirement begin? I thought it was begin March 1. Thanks for all your wonderful information.

    Erma Weigel Posted August 10, 2007 4:43 PM
  • 30090

    If I retire on January 2, 2008 (Friday and the end of the pay period)would I also be entitled to payment for any restored leave balance that I have?

    James Reifsnyder Posted August 6, 2007 8:29 AM
  • 29968

    Tammy,

    Thank you for all the useful information on retirement planning, both in this publication and at your seminar I attended a while ago.

    I have a question about the lump sum payment for unused leave. If I retire on Jan. 2, 2009, the last day of the 2008 leave year, since my lump sum payment is for leave I would be taking in 2009, can I have the lump sum deposited into my TSP account up to the maximum allowable annual amount for 2009 (e.g., 20,500 for the current year)?

    Jim Ralph Posted August 3, 2007 8:42 AM
  • 29949

    I am a GS-12 Air Traffic Controller for the DOD, I worked for the FAA for about ten years under the FERS retirement plan. A few years after leaving the FAA I didn't think I would return to Federal Service, so I requested a refund of my retirement funds. Three years later I was offered a job with the DOD, I now have a little over five years in service. Keep in mind that I'm an Air Traffic Controller, and I will be 56 in about four and a half years, that will give me about nine years eight months, will I be forced to leave government Service or will I be given the opportunity to retire after completing twenty years of service even though I will be sixty six years old?

    Roy Sedlaczek Posted August 3, 2007 2:55 AM
  • 29840

    My question is regarding the high-3 calculation. I will be eligible for retirement on August 31, 2010. Would it benefit me to wait until January 3, 2011 since I would have probably earned the entire annual salary increase granted the 1st part of 2010.

    Sylvia Wilson Posted August 1, 2007 4:21 PM
  • 29648

    I am a retired U.S. Army Major(0-4/21 yrs) currently working as a GS-15 federal employee under the FERS program. I would like to know if it would be more advantageous to combine my military and federal retirements or keep them separate. I plan to complete 20 years as a federal employee at age 67. What would my federal retirement be if I keep them separate if my high three is $100,000 a year? How do you compute high three? Thanks in advance.

    Walter Weatherington Posted July 30, 2007 11:50 AM
  • 29496

    I'm beginning to like the idea of using up my annual leave before I retire. What are your thoughts on that? After all, I'm going to be "on vacation" after retirement so I might want to give it a brief test ride to check it out. The benefits? All the leave is credited toward service, i.e., bigger retirement check. Plus, I continue automatic saving, and matching. What could be better? A pre-retirement vacation that prepares me for retirement in several ways. Sure, I may need (or want) the extra cash just after retirement that a lump sum represents, but that just delays the inevitable - a drop in disposable income. How do I prepare for that? Maybe while I'm on vacation I'll just go down to the beach and imagine that the cruise ship has mechanical problems so I have to chill out there until we can resume our trip. Hey, I have to figure out how to adjust sometime, right?

    John McKenna Posted July 27, 2007 12:32 PM
  • 29226

    Everyone, please feel free to correct me if I am wrong but ...

    Angelo, if you have sick leave remaining when you retire, I think it goes into the "bit" bucket. i.e. It is "use or lose".

    The only thing of value FERS employees derive from their sick leave entitlement is the time off to recover when they take it. This was covered rather extensively in another article by Tammy F.

    I do wish we could at least be able to transfer some of that balance to someone in need but, alas, that too is not allowed.

    Tip off Posted July 24, 2007 1:58 PM
  • 29173

    I am under FERS. What happens to my sick leave when I retire? Is it under the same rules as CSRS?

    Angelo Andre Cavillis Scott Posted July 24, 2007 6:42 AM
  • 29148

    For those DoD employees transitioning to NSPS the pay pool pay out rule needs to be taken into consideration. If you are not on the roles when the payout is made (I believe it is 6 Jan 08 for the current performance period) then you receive neither a salary increase or a bonus.

    ted schneider Posted July 23, 2007 4:37 PM
  • 28968

    What happens to sick leave when it is not needed to add to your maximum (42 yrs)? I presently have over 3480 hrs sick leave.

    I enjoy and read your site regularly, and pass on to others. Thank you.

    Nadine Donner Posted July 20, 2007 3:45 PM
  • 28958

    What would the best date be for me to retire?

    I am under CSRS. I began employment May 12, 1975 with the U.S. District Court, District of New Mexico, and have been with this agency to this date. DOB 12/4/52. My next instep raise will be November 26, 2007. Would it be beneficial to retire on my employment anniversary date, end of 2007, January 31, 2008? Or another date? Desire to accumulate more annual leave is not an issue.

    Cynthia Blumenthal Posted July 20, 2007 1:22 PM
  • 28952

    Another consideration is whether you intend to work and save money in a traditional IRA. If you work 1 day in a calender year covered by CSRS of FERS then you cannot take a deduction for an IRA for that year. So if you retire on 31 Dec 2007, and go to work in 2008 for another employer, that does not have a retirement plan, you can take a deduction for any IRA contributions in 2008. If you work until 3 Jan 2008, you cannot take a deduction for a traditional IRA in 2008.

    Scott D McLennan Posted July 20, 2007 12:49 PM
  • 28943

    I have had trouble locating info on the high-3 computation for CSRS retirement. Is there any way (other than getting a promotion) to boost the high-3 factor in the retirement computation? Do overtime, awards or anything else factor in?

    Charlsie Bailey Posted July 20, 2007 11:15 AM
  • 28933

    September 3 is a very good day for CSRS employees.

    I picked Labor Day (Sept 3) to retire because it is a holiday and just after the end of a pay period. I will get paid for the holiday and as Tammy says I pick up 3 more days service time and the CSRS annuity starts the next day. I will need to check out on the prior Thursday since the Friday is the normal day off for people working 4/5/9. My wife and I will be out camping in our new motor home when my retirement kicks in. I also will get September, October and November credit toward the next retiree COLA. I picked Sept 3, 2007 at 9:11 PM as my departure time because of 9 11 - something I will never forget.

    Worker John Posted July 20, 2007 10:32 AM
  • 28922

    I will have 18 years Civil Service on 3 Aug and I already have 20 in the AF. I will be 59 on 28 Aug. Can I retire this year and if so, what would be the difference between that and waiting for 20? Thank you for your time.

    Jack W. Bloom Posted July 20, 2007 9:39 AM
  • 28911

    Do the end of the year Annual Leave payment rules apply if you leave in the middle of the year. Example - if I retire in August and I'm due a step increase in September and have enough annual leave will I be paid at for my leave at the higher rate.

    Pat Posted July 20, 2007 8:53 AM
  • 28904

    FERS question - if you retire in the middle of a month, is the high-3 average calculated back 3 years from the exact date of retirement? Or is it the prior 3 calendar years? For example, if you retire May 6th, 2008, is the high-3 calculated May 7, 2005 through May 6, 2008?

    Patty Romigh Posted July 20, 2007 8:18 AM
  • 28897

    In the example given in the article for Thomas, who retires on Friday, 1/2/09, it mentions that this is the last workday in the leave year, implying that this is a significant factor, but the accompanying leave chart indicates the leave year actually runs through Saturday, 1/3/09. Why is it desirable for Thomas to reire on a workday (1/2/09), rather than on the actual last day in the leave year (1/3/09)? Would retiring on 1/3/09 jeopardize his being paid for the 208 use-or-lose hours of annaul leave, which exceeds the usual 240 carryover limit or is there some other reason why it wouldn't be wise for him to retire on 1/3?

    T. Rowan Posted July 20, 2007 7:52 AM
  • 28893

    Great info.

    Question: For FERS employees who desire to work as a contractor after retiring, when is the best date to retire and maximize collecting the retirement suppliment that starts after MRA and ends at age 62?

    For example - Is it better to retire 31 Dec 2008, or 1 Jan 2009. What impact to collecting suppliment based on earnings test? very confusing reading opm's explanation.

    Rock Manganella Posted July 20, 2007 7:10 AM

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