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

The TSP by the Numbers

This week, the Thrift Savings Plan held its quarterly meeting of personnel and payroll office representatives. This is when new and updated information is disseminated to agencies to share with their employees.

I thought it would be interesting to take a look at the latest numbers for the plan, as of the end of October.

The overall plan balance was $431 billion, divided as follows:

  • G Fund: 35 percent
  • C Fund: 28 percent
  • F Fund: 5 percent
  • S Fund: 10 percent
  • I Fund: 5 percent
  • L Funds: 17 percent

The average account balance for a Federal Employees Retirement System employee was $113,934 total and $5,463 for the Roth option. The average balance for a Civil Service Retirement System employee was $113,057 total and $8,947 for the Roth.

There are 4,677,445 total participants in the TSP. Some facts about them:

  • 302,000 FERS employees only receive agency contributions (equaling 1 percent of basic pay)
  • 113,000 CSRS employees contribute to the TSP (about 65 percent of the remaining CSRS employees in federal service)
  • 1,196,000 separated participants have left their money in the TSP
  • 274,000 active participants are not currently contributing, but still ...

Last Chance to Save Some Bucks on Health Insurance

The 2014 health benefits opens season will end on Monday, Dec. 8. For most of you, this will be the last chance to evaluate your health care choices until the next open season. There are a lot of reasons for federal employees and retirees to consider changing their current coverage and to evaluate whether to set up a flexible spending account or add supplemental dental or vision coverage.

Here are the excuses I frequently hear for not changing plans or adding benefits during open season:

  • It’s too complicated.
  • I’m afraid I’ll overlook something that will end up costing me more money next year.
  • I don’t want to change doctors.
  • My plan is accepted everywhere, and I’m not sure my doctor has even heard of some of these other plans.
  • If I don’t spend the money in my flexible spending account, I will lose it.
  • It’s too hard to read the brochures, since each one is over 150 pages long.
  • There are too many choices.
  • I’m happy with what I have.

Why It’s Worthwhile

All of the above concerns are valid. But even if you’re content with your current coverage, and ...

We Need to Talk About Your Retirement

Pull up a chair. Can I get you a cup of coffee? If you’re married, I hope you brought your spouse along. We’re going to talk about your upcoming retirement.

Welcome to your pre-retirement counseling session!

If you are retiring in the next few months, I hope you’ve had the opportunity to get pre-retirement counseling. Unfortunately, not all federal employees receive the same level of counseling before their retirement date. Some agencies have many employees retiring and very few qualified retirement specialists.

The job of a federal retirement benefits counselor is demanding. Navigating the rules and regulations governing Civil Service Retirement System and Federal Employees Retirement System benefits requires a lot of experience. Here’s a list of agency benefits officers, who are designated to advise employees about various aspects of benefits program administration. If you’re not sure who to contact in your agency for retirement counseling, this person may be able to provide you a point of contact.

Getting Started

In the meantime, I’ll provide a little counsel of my own. The Office of Personnel Management’s Publication 83-11, Thinking About Retirement?, offers a very good overview of what you can do and what ...

The $1,258 Question

In 2015, Medicare Part B premiums will be $104.90 per month per person, or $1,258.80 a year. The good news is that’s unchanged from this year. The bad news is that feds who will turn 65 in 2015 will need to make a decision about whether or not to enroll in Part B and pay this additional premium on top of what they already pay for Federal Employees’ Health Benefits Program coverage.

Let’s look at some of the advantages of adding Part B and some ideas to how to make the dual coverage more affordable. But before we begin, here’s a quick overview of Medicare’s four parts:

  • Part A covers hospital care for overnight stays, care in a skilled nursing facility, hospice care and home health services. There is no premium for Part A as long as you or your spouse has paid the Medicare tax during employment. All federal employees have paid this tax since 1983. The military has been covered by Social Security payroll taxes since 1957.
  • Part B covers medically necessary services and supplies that are needed to diagnose or treat an illness or medical condition and that meet accepted ...

A Little More Cash During Open Season

Open season for federal health benefits is right around the corner: It starts Nov. 10 and runs until Dec. 8. When you hear the words “open season,” what thoughts come to mind?

How about: Stirring, exciting, thrilling, rousing, sensational and exhilarating?

Or is it more like: Tiresome, mind-numbing, monotonous, tedious, boring and dull?

Open season is your chance to enroll, review, change or terminate your participation in the following programs:

  • Federal Employees Health Benefits Program
  • Federal Employees Dental and Vision Insurance Program
  • Federal Flexible Spending Accounts

Those don’t sound like exciting things to think about, I must admit. However, what if I told you that open season is like mining for gold or finding lost cash or using a metal detector to discover a diamond ring on the beach? That’s a little more exciting, right?

Open season can be an opportunity to put a little more cash in your pocket. Here are five ideas that might help you do just that.

Contribute to a Flexible Spending Account

If you’re an eligible federal employee, you can sign up. If you’re already contributing, but not at the maximum level, then consider increasing your contributions -- assuming you’ll incur ...