Retirement Planning Retirement PlanningRetirement Planning
Advice on how to prepare for life after government.

Retirement Quiz: The Basics

ARCHIVES
Africa Studio/Shutterstock.com

It’s quiz time! I’ve designed this one to cover some of the basics, with relatively new federal employees in mind. But midcareer and pre-retirement age federal employees may also find they have a few things to learn.

  1. There is no minimum age to make contributions to an Individual Retirement Arrangement.
    1. True
    2. False

  1. Which of these is a type of retirement savings plan:
    1. IRA
    2. 401k
    3. TSP
    4. 403b
    5. SEP
    6. MyRA
    7. All of the above

  1. The word “vested” relative to a particular retirement benefit means:
    1. It belongs to you; you have the full and legal right to this benefit.
    2. You are not yet entitled to receive the full benefit.
    3. It is the sleeveless layer of your retirement plan.

  1. The money you contribute to the TSP, along with the matching government contributions, is immediately vested.
    1. True, however, there is a three year vesting requirement for the 1 percent agency automatic contribution.
    2. False, it takes three years for your TSP account to be vested.

  1. What is the minimum number of years of service required to qualify for a federal retirement benefit?
    1. Three
    2. Five

  1. An annuity is a term used to describe a fixed income stream paid over a specific period of time, usually for the life of an individual.
    1. True
    2. False

  1. A pension is a fixed sum paid following retirement, generally for the life of an individual.
    1. True
    2. False

  1. It is accurate to refer to the federal retirement benefit as an annuity or a pension benefit.
    1. True
    2. False

  1. If you resign from federal service before meeting the age requirement for an immediate retirement, but you have a minimum of five years of federal service, you may be entitled to a deferred annuity.
    1. True
    2. False

  1. Social Security benefits provide a lower replacement of income for those earning lower wages and a higher replacement of income for those earning higher wages.
    1. True
    2. False

Ready for the answers? Click here.

(Image via Africa Studio/Shutterstock.com)

Tammy Flanagan has spent 30 years helping federal employees take charge of their retirement by understanding their benefits. She runs her own consulting business at www.tammyflanagan.com and provides individual counseling as well as online training for the National Active and Retired Federal Employees Association, Plan Your Federal Retirement as well as the Federal Long Term Care insurance Program. She also serves as the senior benefits director for the National Institute of Transition Planning Inc., which conducts federal retirement planning workshops and seminars.

For more retirement planning help, tune in to "For Your Benefit," presented by the National Institute of Transition Planning Inc. live on Federal News Radio on Mondays at 10 a.m. ET on WFED AM 1500 in the Washington-metro area. Archived shows are available on NITPInc.com.

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.