Return to Article: FERS Flexibilities
-
60117
You can bet I'm worried about my 401K C and S fund accounts!!! Only 10 yrs Fed Svc...so there "was" around $80K...afraid to look now. Thanks.... Tks, Jim
-
59881
CERS is better than FERS. I will have 30 Yrs when I retire, that will be 40 to 45 K's per Yrs with FERS. The same period with CSRS, retirement will be 70 to 80 K's per year. Which one is better?
-
59844
@ yeah right. I agree it is a trite expression, however when SS was incepted, most didn't even live to 65 to collect it. I don't think there was much thought that we could extend our longevity for lots of folks into the 80's and even 90's, so the drain wasn't predicted.
-
59739
The only thing flexible under FERS is that employees need to move those retirement goal posts further out. Not providing inflation protection to the micro FERS retirement, letting Wall Street clip TSP, along with future plans to shear Social Security will insure longer working careers. Lastly, NSPS will allow out year salaries to be be trimmed. The beauty of FERS is that employees may never retire and thereby save a lot of money to be set aside for better use in taking care of Wall Street investment bankers.
-
59628
Tammy, I retired under CSRS Offset. could you please tell me the difference between that and CSRS when I turn 62 and start collecting social security ? I paid back all of my military time. thanks
-
59603
I disagree with the TSP part of FERS. Many stocks pay a higher dividend when they go down. This compensates for incurred selling of the company stock. Look at Phizer or Wells Fargo. There dividends are larger than the G fund. Also i may get a tax break up front but i take on greater losses over time. Individual stocks, like Kraft or Coca Cola are great values at the present level. Why not let us buy into a basket of individual blue chips instead of playing the entire 13 sectors? TSP was meant for the whole stock market to go up forever. That just aint so. There in lays the flaw. I am only putting 5% into the TSP, the other 5% goes into wells fargo(WFC), a smallcap defense stock and kraft.
-
59592
But Joe, you didn't mention that you also get no cost of living raises until you get to 62...and the social security supplement is going to run about half of what your social security statement says it should be. So until you hit 62 health care increases etc lower your retirement with no way to recoup it
-
59577
For the FERS part you have to fill in the Question marks Mr. Cliff Manasco
2008 less 2013 = 5 plus 24=29 times $100,976.00 times .01= $29,283.04
$29,283.04 times ???? (States tax) =?????
$29,283.04 times ???? (Federal tax)=?????
$29,283.04 times ???? (local tax)
$29,283.04 less taxes = ??????Then there is the question of which state you are going to retire in and how they will treat (Tax) your FERS retirement and your SSN. You would be shock at the different state tax laws
Keep in mind that these are dirty numbers and XXXX-house lawyer advise. For the facts talk it over with someone that does this for a living.
-
59561
I appreciate the explanation of the differences and options between the two retirement systems. It is very informative. I am however SICK of hearing the trite phrase "Social Security was never intended to be enough to retire on by itself". When Social Security was created, that's EXACTLY what it was intended to be! A retirement savings plan for the common worker. IRA's & 401k's, etc. didn't exist. If a worker didn't have adequate savings they worked until they were either too ill to work or died. If Congress would revert SS back to it's original design model, the workers like us wouldn't have to jump through 25 different issues just to figure out how to live from month to month when we want/need to retire.
-
59559
The biggest flexibility for FERS is the ability to extend your working years in hopes that TSP might recover and thereby augment your paltry limited inflation protected FERS retirement. Too bad you're not an investment genius like Warren Buffet. That's the beauty of TSP, if you lose your money it's your own fault. Government is not going to take care of you like it does it's friends on Wall Street.
-
59517
"His small federal retirement would provide him the ability to continue his federal health, dental, vision, life and long-term care insurance for the rest of his life."
Note that Federal Long Term Care Insurance is fully portable. Therefore, once your policy has been approved, it cannot ever be cancelled, as long as you pay the premiums.
-
59501
I am looking to retire on 3 Jan 2013 so I can carry over 240 hours of leave plus 203 hours from previous year. I have been saving 8% in TSP going to 10% this year and just befor stocks tanked I put all I had in the G fund (235,500) now and it gos up (with my input 4k each month). I cunently make 100976. I have 24 years curently. and 46 years under SS. Do I have enough of a cusion to make in in retirement?
-
59499
It was my understanding that vision and dental were not part of the federal health benefits package available upon retirement.
-
59475
I'm sorry - if you, like me, are under FERS, you're screwed. (Especially, in light of recent economic news, if you are nearing retirement age with an expectation that TSP contributions will continue to grow). I suppose if you lived in Bangladesh your FERS retirement might seem like you did OK after a lifetime of hard work.
-
59471
When comparing CSRS to FERS for those of us who had the option to change, remember that spousal benefts may be be lower under CSRS. This is because the base pension is larger, so the 45% reduction is more of a hit for the surviving spouse. FERS retirees are "forced" to use multiple sources of income during retirement, and the net FERS pension is a smaller amount, so when it is reduced by 50%, the spouse's loss of income (in absolute dollars) isn't as great. What all this means is "don't put all your eggs in one basket". I am glad I switched from CSRS to FERS, and my spouse will be better off if I die prematurely. However, each employee's situation is different, especially with respect to TSP, IRA, and social security entitlements.
-
59469
FERS VS CSRS...Poor Joe, I think that he will have funding short fall issues because he has a lot of "IF's". However, I am looking at Joe and overlaying his situation over mine. This is the kind of information that kicks my brain into gear and gets me to thinking about how to put together a solid "spending plan" (SPINN PLAN) to correct funding issues that I see in my retirement future. I hope to read more FERS retirement articles along this line. There are alot of "IF's" in my retirement SPINN PLAN. And Congress is not going to give me a suppmental. "This we will Defend"
-
59468
It strikes me odd that in all of the discussions and printed matter I have seen about the benefits of FERS and of investing in the TSP, no one ever mentions anything about the buying power people in FERS lose. If two employees, (lets say they are high paid individuals to make the math easy) make $100,000 per year, one is in CSRS and the other is in FERS. The CSRS employee has to do nothing but keep his job for a cushy retirement, while the FERS employee loses $15,500 in buying power each year if he puts the maximum amount into his TSP account which currently gives him much anxiety. Now tell me what a great system FERS is...
-
59465
You explained it just right Tammy, I'm retired military and intend to retire in 2011 with 15 years under FERS, under CSRS that wouldn't be possible, I'd be stuck for 5 more years. Fers is what you make it, with a little planning its a great system.
PROMO RIGHT: EVENTS
UPCOMING WEBINARS
NOVEMBER 18
Speed bumps for Teleworking: What are they and how to avoid them?
DECEMBER 3
Achieve Program Success: Unlock the Management Information in Your Data
DECEMBER 10
Practical Transparency: Applying Exchange Networks for Mission Results
PROMO RIGHT: DIRECTORIES
Post a Comment
To post a comment, you must provide a name and a valid e-mail address. Messages must be limited to 400 words. By using this Service you agree not to post material that is obscene, harassing, defamatory, or otherwise objectionable. Although Government Executive does not monitor comments posted to this site (and has no obligation to), it reserves the right to delete, edit, or move any material that it deems to be in violation of this rule.