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I'm lost because.....I can't figure out how taking 4.4 percent of my salary (out of my paycheck) while I'm working -- only to pay me back a retirement annuity of -- .01 x your high-3 x all years and full months of service -- is that great a deal.
Aren't I losing money? Where'd the other 3% of my pay go?
Am I missing something?
Thanks.
part of it is that over the years, you end up making more money, so the high three works in your favor
the 4.4% you pay at a lower salary counts towards the same 1% of high three as the high three years
it takes 18 years to go from step one to ten if you dont increase grade during meantime, if someone stuck it out for so long, the difference in contribution from beginning years is less than what they would have gotten from another annuity
I didn't actually retire as a Guard Technician although I did get my 21 years traditional guard retirement. I credit you for hanging in there till 60. I could only make it till 50 as I just couldn't keep my weight down and while I could still pass a PT test that was around the time where the PT requirements seemed to be getting harder and harder as they lined up with active duty. I knew I wasn't going to make it till 60. I was very lucky to find a straight civil service gig, still went out at 60 although many stay longer I felt mentally and emotionally I was losing ground as there were also a lot of changes happening in my career field that made the job a lot more difficult and a less satisfying.
I didn't actually retire as a Guard Technician although I did get my 21 years traditional guard retirement. I credit you for hanging in there till 60. I could only make it till 50 as I just couldn't keep my weight down and while I could still pass a PT test that was around the time where the PT requirements seemed to be getting harder and harder as they lined up with active duty. I knew I wasn't going to make it till 60. I was very lucky to find a straight civil service gig, still went out at 60 although many stay longer I felt mentally and emotionally I was losing ground as there were also a lot of changes happening in my career field that made the job a lot more difficult and a less satisfying.
I didn't quite make 60. I was put out at 58.5 but I had attained an immediate retirement eligibility with more than 30 years. I also think you made the right call as well those last few years were very difficult excluding the 3+ years as a 1SG. That was harder and more fun.
I'm set to cash in about 360 hours. Taking 40 hours off in October just to get away and treat myself and husband.
BTW, how long did your FERS pension take to finalize?? I hear horror stories of 6 months to a year!
Greetings.
My retirement date was July 31st of this year (2017) and my last federal pay, along with unused annual leave (around 300 hrs give or take, don't remember exact amount), was deposited the following scheduled payday (second week of August?).
So far, partial amount has been deposited the first of the month and I'm hoping that my finalized pension amount will appear the first of this November...we'll see.
BTW; I read the same horror stories of the time it takes for you to get funds deposited, so I took a small amount out of TSP just to be safe until pension finalizes.
My retirement date was July 31st of this year (2017) and my last federal pay, along with unused annual leave (around 300 hrs give or take, don't remember exact amount), was deposited the following scheduled payday (second week of August?).
So far, partial amount has been deposited the first of the month and I'm hoping that my finalized pension amount will appear the first of this November...we'll see.
BTW; I read the same horror stories of the time it takes for you to get funds deposited, so I took a small amount out of TSP just to be safe until pension finalizes.
Hang in there.
I have great anxiety about all this. When my retirement estimate was prepared three years ago, there were problems finding some of my official record, I had all but 14 months of SF50s, so who knows what will happen.
I did received my green card (postal return receipt card) in the mail, so I know my personnel office received my packet.
I am blessed to have my husband, who is on social security and has a private sector pension, as well as my minimal Army retirement to carry me through. I'm rolling my TSP into an IRA and do not plan to touch it unless we have a tragedy or something. Going to be tight but we will be ok.
I have great anxiety about all this. When my retirement estimate was prepared three years ago, there were problems finding some of my official record, I had all but 14 months of SF50s, so who knows what will happen.
I did received my green card (postal return receipt card) in the mail, so I know my personnel office received my packet.
I am blessed to have my husband, who is on social security and has a private sector pension, as well as my minimal Army retirement to carry me through. I'm rolling my TSP into an IRA and do not plan to touch it unless we have a tragedy or something. Going to be tight but we will be ok.
Hard to believe I only have 2.5 months to go!!!
Welcome to retirement. I think you will be fine. All of those records will be at DFAS and that is going to be verified once your employment has terminated. I do think you should reconsider rolling your TSP out to an IRA. If nothing else leave a minimum of $250.00 in to keep the account open. TSP's rules are changing soon and it will be easier to make withdrawals when needed instead of the restricted withdrawal options we have today. The reason I say this is TSP has some of the lowest maintenance fees of all the brokerage houses around. Even Vanguard's maintenance fees are higher.
Also so far I have been on a monthly payment plan that I am using to supplement our income. It has been regular and I have had TSP take federal taxes out as they go to lower any possible taxes owed for the year. But I do have enough to pull monthly income that will last more than 10 years (the requirement currently to avoid a 20% tax deduction from the payments). That was one of the rules I feel is the most restrictive. PM me if you would like to ask more detailed questions. I have been receiving TSP money for 12 months and my balance has gone up and not down.
I have great anxiety about all this. When my retirement estimate was prepared three years ago, there were problems finding some of my official record, I had all but 14 months of SF50s, so who knows what will happen.
I did received my green card (postal return receipt card) in the mail, so I know my personnel office received my packet.
I am blessed to have my husband, who is on social security and has a private sector pension, as well as my minimal Army retirement to carry me through. I'm rolling my TSP into an IRA and do not plan totouch it unless we have a tragedy or something. Going to be tight but we will be ok.
Hard to believe I only have 2.5 months to go!!!
. I'm doing the same thing. NOT TOUCHING IT until I really needed, tragedy or something unforeseen.
. Yes, you will be ok. You will realize that some of your expenses will be lower, ie; gas fill up for your vehicle not as often, replace/update work clothes, daily going to lunch expenses (if you eat out), etc.
. Before you know it, 2.5 months will go by quickly.
Guys and Gals, moral of this post is try to learn everything you can about your Federal service job, whether it is early in your career or late.
FERS is a three legged stool of retirement earnings for you......yours FERS annuity, Social Security and your TSP, and if you are fortunate enough to retire at 56 with enough years they provide a supplement to you until age 62.
Now congress keeps threatening us with high five, eliminating the supplement and for us older in service FERS employees and new hires increase our contribution in FERS to 6%.
I see a handful of those retiring in five years come back from their retirement training with sad faces wishing they knew more about how their TSP was such an important part of their retirement and they had not contributed enough during their career.
The information and calculators are out there which can get you pretty dam close without having HRO figure anything for you.
I also think if you have the means to contribute to TSP fully (above 15%)that we do come out better than CSR retirees and while there are different schools of thought about moving your TSP at retirement, the maintenance fees with TSP are pretty low.
I did not mean to highjack the thread and as I never stayed at a Holiday Inn I am always surprised but how little some of my co-workers know about their FERS retirement.
Guys and Gals, moral of this post is try to learn everything you can about your Federal service job, whether it is early in your career or late.
FERS is a three legged stool of retirement earnings for you......yours FERS annuity, Social Security and your TSP, and if you are fortunate enough to retire at 56 with enough years they provide a supplement to you until age 62.
Now congress keeps threatening us with high five, eliminating the supplement and for us older in service FERS employees and new hires increase our contribution in FERS to 6%.
I see a handful of those retiring in five years come back from their retirement training with sad faces wishing they knew more about how their TSP was such an important part of their retirement and they had not contributed enough during their career.
The information and calculators are out there which can get you pretty dam close without having HRO figure anything for you.
I also think if you have the means to contribute to TSP fully (above 15%)that we do come out better than CSR retirees and while there are different schools of thought about moving your TSP at retirement, the maintenance fees with TSP are pretty low.
I did not mean to highjack the thread and as I never stayed at a Holiday Inn I am always surprised but how little some of my co-workers know about their FERS retirement.
Four years and five months to go for me
PS: Great advice given in this thread!
>>>AMEN<<<
Do NOT WAIT to go to a retirement briefing. Go at 25 or 30 years of age, not 50!
You would not believe some of my co-workers who have no idea what pension they may receive. They don't know about the pending changes to our retirement, doing away with the supplement, high 5 instead of high 3. They just do not appear to care. Time passes so quickly and you will be 62 before you know it!
Do NOT WAIT to go to a retirement briefing. Go at 25 or 30 years of age, not 50!
You would not believe some of my co-workers who have no idea what pension they may receive. They don't know about the pending changes to our retirement, doing away with the supplement, high 5 instead of high 3. They just do not appear to care. Time passes so quickly and you will be 62 before you know it!
Also, you might want to burn all your sick time up before you retire. I retired under CSRS in 2004 and the Personnel Office explained to me that your sick time is added to your pension ...you get 2% of your sick leave for each retirement year. What a bargain! You'd have to be retired for 50 years to get all your money back. My boss managed to get "sick" and use her year's sick leave up and then retired. That was a much smarter move. She increased her "high 3" average by doing this. I don't know if they've changed sick leave policy since 2004 for the FERS people. Something to think about!
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