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

Changing Stakes on Claiming Social Security

As a result of a surprise move by Congress late last year, two popular strategies that can maximize Social Security retirement benefits are coming to an end.

The problem, according to the Social Security Administration, is that use of the strategies “allowed couples with financial means to obtain additional or enhanced benefits that Congress did not intend, and are contrary to the goals of the Social Security program.”

For now, those will turn 66 on or before May 1, 2016 (or maybe April 29 or 30--that’s yet to be determined for sure), can still file and suspend their Social Security retirement application for benefits to allow their spouse to file for spouse’s benefits while the other worker’s benefit accrues delayed credits. If you have reached full retirement age, but have not yet turned 70, you can file for benefits but then ask Social Security Administration to suspend retirement benefit payments.

But then things begin to change, in ways that are still murky. The Social Security Administration, who will be implementing the changes, has published a two-page flyer titled Bipartisan Budget Act of 2015, but it doesn’t include many details. Mary Beth Franklin, a well-known expert on...

A Rare Open Season For Life Insurance

Each new year brings changes to federal employee and retiree benefits. One this year that will affect almost all employees is the change in Federal Employees Group Life Insurance premiums and a rare open season for life insurance.

The last FEGLI open season was in 2004, in connection with the 50th anniversary of the program. In 2016, due to the change in premiums that took effect this month, there will be another open enrollment period from Sept. 1 to Sept. 30. Employees won’t have to prove insurability or have experienced a particular life event to participate in this rare open season. Retirees won’t be eligible to take advantage of the open season. (Both employees and retirees can decrease their life insurance at any time and there are circumstances under which employees can increase their FEGLI coverage without an open enrollment event.)

Increases in insurance coverage made during open season won’t take effect for a full year, at the beginning of the first pay period on or after Oct. 1, 2017.

Time to Review

Open season is still months away, but now is a good time to reevaluate your life insurance needs based on who would be affected...

The List: A Retirement Resources Guide

Last week, I presented The Index, my annual guide to past columns. This week, it’s The List: a compilation of resources that I use on a daily basis to back up what I say to you and to any federal employee that asks me a retirement benefits question. These resources are credible, add to your knowledge base and help you confirm that important rules haven’t changed.

The sources below provide information you should want to know so that you can prepare for a smooth transition to retirement. As they say in the carpentry business, “measure twice, cut once.” Ask questions until you understand. It’s easy to leave government, but a lot harder to come back if you left without knowing exactly what you are entitled to receive.

The Big Three

Three organizations are important in administering federal retirement benefits: The Office of Personnel Management, The Thrift Savings Plan and the Social Security Administration. If it’s been awhile since you visited their websites, you owe it to yourself to see what’s new.

Office of Personnel Management

The Index: 2016 Edition

Maybe it was the way I was raised, but I love to organize and clean house. My mom did fall and spring cleaning every year. I grew up in Pittsburgh when the steel mills were still operational, so there was a good reason for all of her effort.

This time of year, I clean house in a different way: by scrubbing the index to my Retirement Planning columns. Every year for the past 10 years, I’ve gone through the previous year’s columns to decide which ones are worth saving in the index. I also evaluate the current index to determine which columns are still relevant.

I hope you will refer to the index when you have a question about a particular retirement planning topic. Some of you may be retiring in the near future -- or maybe you’ve already retired at the end of 2015. Others may have just begun working for Uncle Sam. My goal has always been to write about a variety of topics in a way that simplifies complicated retirement benefit issues. It is my sincere hope that the columns will help you to take charge of your retirement with confidence.

Retirement Processing

Retirement Modernization...

Rushing Retirement Could Cost You

January is often a time of reckoning. It’s when many of us resolve to get more exercise, save more money and finally get around to doing all those things we’ve put off for too long. It’s also when a lot of federal employees put in their retirement paperwork. If you’re on the fence, there are things you need to consider before submitting your paperwork.

To help you work through those things, download Tammy Flanagan's new eBook, “Take Charge of Your Retirement: Planning for Life After Government.” It provides a good overview of many of the things that will affect the kind of life you have after your federal career.

Perhaps most importantly, there’s a list of things to do before you leave government to ensure you get the most out of your retirement benefits. You’ll also find helpful information about taxes, insurance and other things that will affect your quality of life, as well as information about estimating your income.

Retirement is an opportunity for new beginnings. But make sure you begin it with care.

(Image via auremar/