should i stay or should i go? - narfe...2 should i stay or should i go? national active and retired...
TRANSCRIPT
1
Should I Stay or Should I go?
A NARFE Federal Benefits Institute Webinar
Presented by Tammy Flanagan
National Active and Retired Federal Employees Association Sponsored by
2
Should I Stay or Should I Go?
Sponsored by National Active and Retired Federal Employees Association
Acronyms
Second Career or Retirement
TSP, Social Security and Insurance
What can be done to prepare?
3
Test Your Knowledge
How will you
know if you
will be offered
early retirement?
A. Agency will provide a notice
B. You can apply anytime
C. Made available in president’s
budget
D. Your co-workers will let you know
Sponsored by National Active and Retired Federal Employees Association
4
Test Your Knowledge
How will you
know if you
will be offered
early retirement?
A. Agency will provide a notice
B. You can apply anytime
C. Made available in president’s
budget
D. Your co-workers will let you know
Sponsored by National Active and Retired Federal Employees Association
5
Who is vulnerable? EPA
• 25 percent of its workforce
• 3,200 employees
• 31 percent of the agency’s budget
•$12 million set aside for incentive payments
National Active and Retired Federal Employees Association Sponsored by
6
Who is vulnerable? Interior
•6 percent of workforce in fiscal year 2018
•4,000 jobs
Interior Office of the Secretary (16 percent)
Bureau of Land Management (15 percent)
U.S. Geological Survey (12 percent)
Bureau of Indian Affairs (10 percent)
National Active and Retired Federal Employees Association Sponsored by
7
Who is vulnerable?
•Reduction or elimination of cost-of-living adjustments (COLA)
•Increased retirement contributions
•Elimination of Federal Employees Retirement System (FERS) supplement
•High-five years instead of high-three years
National Active and Retired Federal Employees Association Sponsored by
8
Acronyms
VERA
• Voluntary Early Retirement Authority
• 50 and 20 or any age and 25
VSIP
• Voluntary Separation Incentive Payment
• $25,000 or $40,000 (DoD until 9/30/18)
DSR
• Discontinued Service Retirement
• 50 and 20 or any age and 25
• Involuntary
Sponsored by National Active and Retired Federal Employees Association
9
Let’s Start With the Basics… The FERS or CSRS Basic Benefit: Eligible?
CSRS or FERS
Early Retirement
Age Service
50 20
ANY 25
Sponsored by National Active and Retired Federal Employees Association
10
Let’s Start With the Basics… The FERS or CSRS Basic Benefit: Eligible?
CSRS Immediate / Optional
Age Service
55 30
60 20
62 5
FERS Immediate / Optional
Age Service
MRA (55-57) 30
60 20
62 5
MRA 10
Sponsored by National Active and Retired Federal Employees Association
11
Let’s Start With the Basics… The FERS or CSRS Basic Benefit: Eligible?
CSRS Deferred
Age Service
62 5
FERS Deferred
Age Service
MRA (55-57) 30
60 20
62 5
MRA (Reduced)
10
Sponsored by National Active and Retired Federal Employees Association
12
Test Your Knowledge
Is this employee eligible for Immediate, Deferred or Early Retirement?
• Age 59 • 34 years of service
A. Immediate
B. Deferred
C. Early Retirement
D. None of the above
Sponsored by National Active and Retired Federal Employees Association
13
Test Your Knowledge
Is this employee eligible for Immediate, Deferred or Early Retirement?
• Age 59 • 34 years of service
A. Immediate
B. Deferred
C. Early Retirement
D. None of the above
Sponsored by National Active and Retired Federal Employees Association
14
Test Your Knowledge
Is this employee eligible for Immediate, Deferred or Early Retirement?
• Age 64 • 4 years of service
A. Immediate
B. Deferred
C. Early Retirement
D. None of the above
Sponsored by National Active and Retired Federal Employees Association
15
Test Your Knowledge
Is this employee eligible for Immediate, Deferred or Early Retirement?
• Age 64 • 4 years of service
A. Immediate
B. Deferred
C. Early Retirement
D. None of the above
Sponsored by National Active and Retired Federal Employees Association
16
Test Your Knowledge
Is this employee eligible for Immediate, Deferred or Early Retirement?
• Age 48 • 15 years of service
A. Immediate
B. Deferred
C. Early Retirement
D. None of the above
Sponsored by National Active and Retired Federal Employees Association
17
Test Your Knowledge
Is this employee eligible for Immediate, Deferred or Early Retirement?
• Age 48 • 15 years of service
A. Immediate
B. Deferred
C. Early Retirement
D. None of the above
Sponsored by National Active and Retired Federal Employees Association
18
Test Your Knowledge
Is this employee eligible for Immediate, Deferred or Early Retirement?
• Age 52 • 23 years of service
A. Immediate
B. Deferred
C. Early Retirement
D. None of the above
Sponsored by National Active and Retired Federal Employees Association
19
Test Your Knowledge
Is this employee eligible for Immediate, Deferred or Early Retirement?
• Age 52 • 23 years of service
A. Immediate
B. Deferred
C. Early Retirement
D. None of the above
Sponsored by National Active and Retired Federal Employees Association
20
Test Your Knowledge How many of the employees in the previous examples would be eligible for a buyout, if offered?
A. All of them
B. None of them
C. Only the ones eligible for
early retirement
D. Only the ones eligible for
immediate and early
retirement
Sponsored by National Active and Retired Federal Employees Association
21
Test Your Knowledge How many of the previous employees in the examples would be eligible for a buyout, if offered?
A. All of them
B. None of them
C. Only the ones eligible for
early retirement
D. Only the ones eligible for
immediate and early
retirement
Sponsored by National Active and Retired Federal Employees Association
22
CSRS: How much?
Shortcut formula: Length of service minus two times two plus .25 = percentage of high-three Ex: 30 – 2 x 2 + .25 = 56.25% x high-three average salary
Sponsored by National Active and Retired Federal Employees Association
Length of Service: 20 years 36.25%
30 years 56.25%
40 years 76.25% High-Three:
$40,000 $14,500 $22,500 $30,500
$60,000 $21,750 $33,750 $45,750
$80,000 $29,000 $45,000 $61,000
$100,000 $36,250 $56,250 $76,250
$120,000 $43,500 $67,500 $91,500
23
FERS: How much?
Shortcut formula: Length of service x 1% = % of high-three Age 62 with 20-plus years of service: Length of service x 1.1% = % of high-three
Sponsored by National Active and Retired Federal Employees Association
Length of Service: 20 years 20% / 22%
30 years 30% / 33%
40 years 40% / 44%
High-Three:
$40,000 $8,000 $8,800
$12,000 $13,200
$16,000 $17,600
$60,000 $12,000 $13,200
$18,000 $19,800
$24,000 $26,400
$80,000 $16,000 $17,600
$24,000 $26,400
$32,000 $35,200
$100,000 $20,000 $22,000
$30,000 $33,000
$40,000 $44,000
$120,000 $24,000 $26,400
$36,000 $39,600
$48,000 $52,800
24
FERS
Social Security or Annuity Supplement
Thrift Savings Plan
National Active and Retired Federal Employees Association Sponsored by
25
Estimate: Creditable Service
Be sure your service is properly documented
Work Schedule
Retirement Coverage
Beginning and Ending Dates
Sponsored by National Active and Retired Federal Employees Association
26
Will Your Retirement Be Reduced?
Survivor Elections
• Spousal elections
• Insurable Interest
• Former Spouse
Age Reduction
• Early retirement (CSRS)
• MRA + 10 (FERS)
Unpaid deposit / redeposit (CSRS only)
Sponsored by National Active and Retired Federal Employees Association
27
Which will it be?
Second Career
• Low unemployment
• Security clearance
• Marketable skills
Retirement
• Income sufficient
• Plans for life after career
Sponsored by National Active and Retired Federal Employees Association
28
TSP
Diversify Rebalance
Manage
Withdrawal Options
Social Security
62 – 70?
FERS Supplement
Earnings Limit
Insurance
FEHB
Medicare
FEGLI
FEDVIP
FLTCIP
Sponsored by National Active and Retired Federal Employees Association
TSP, Social Security and Insurance
29
Thrift Savings Plan
• Cash
• Transfer to IRA Partial
Withdrawal
• Lump sum
• Monthly payment
• Dollar amount
• Life expectancy payout
• Life Annuity
Full Withdrawal
Sponsored by National Active and Retired Federal Employees Association
30
Learn More About TSP Withdrawal Options
Sponsored by National Active and Retired Federal Employees Association
Retirement Income Calculator at
www.tsp.gov/PlanningTools/index.html
31
The Value of Investment Income
Flexibility
In YOUR control
Tax strategy
Sponsored by National Active and Retired Federal Employees Association
32
The Value of Social Security Retirement
Lifetime income
• Claiming Strategies
• Dependents Benefits
• WEP and GPO for CSRS
Tilted benefit
• Average benefit in 2016: $1,341 / month
• More replacement for lower wages
Sponsored by National Active and Retired Federal Employees Association
33
Insurance
FEHB and FEGLI
5-year test
Immediate retirement
FEDVIP
Immediate retirement
Can elect post-
retirement
FLTCIP
Portable once
enrolled
Medicare
Over 65 or
disabled
Sponsored by National Active and Retired Federal Employees Association
34
What Can Be Done to Prepare?
Consider
Evaluate
Estimate
Sponsored by National Active and Retired Federal Employees Association
35
Estimate
Sponsored by National Active and Retired Federal Employees Association
36
Evaluate
Sponsored by National Active and Retired Federal Employees Association
37
Consider
Sponsored by National Active and Retired Federal Employees Association
