Retirement Overview

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Retirement Overview
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Federal Retirement Systems

• Civil Service Retirement System (CSRS) (includes
  CSRS-Offset)
• Federal Employees Retirement System (FERS)

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CSRS Basic Benefit

• Based on
• High-3 Average Salary
• Federal civilian and military service (may
  require deposit)
• Unused sick leave

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CSRS Formula

• 1.5 of High 3 x 1st 5 years of service
• 1.75 of High 3 x 5 years of service
• 2 of High 3 x remaining years of service
• Quick formula Total Service minus 2 times 2

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CSRS Offset

• Same formula as CSRS
• Annuity reduced at age 62 if eligible for Social
  Security
• Reduction based on amount of SS benefits earned
  while covered under CSRS Offset

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FERS Basic Benefit

• 1 of your High-3 x each year of service (must
  make a deposit for military service)
• A FERS employee with 30 years of service will
  receive 30 of their high-3 average salary
• If you retire at age 62 with at least 20 years of
  service 1.1 of high-3

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Social Security Benefit

• Eligible for reduced social security benefit at
  age 62
• Eligible for unreduced benefits at age 65 67.
• Receive a statement each year from SSA
• www.ssa.gov

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Thrift Savings Plan

• Tax deferred retirement savings acct
• Eligible under both CSRS and FERS
• Contributions limited by IRS
• Vested in employee and agency matching
  contributions.
• Vested in agency automatic contributions after 3
  years.
• TSP calculator (www.tsp.gov) available

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TSP CSRS

• No agency contributions
• TSP limit 2008 - 15,500
• TSP limit 2008 catch up - 5,000
• Use myPay to request contributions

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TSP FERS

• Employee contributions
• TSP limit 2008 - 15,500
• TSP limit 2008 catch up - 5,000
• 5 Agency contributions -
• automatic 1,
• Matching 1st 3 matched dollar-for-dollar, next
  2, 50 cents on the dollar.

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TSP

• Investment Options
• Government Securities (G-fund)
• Fixed Income Index fund (F-fund)
• Common Stock fund (C-fund)
• Small Cap Stock fund (S-fund)
• International Stock fund (I-fund)

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TSP

• Lifecycle fund (L-fund)
• Select If time horizon is
• L 2040 (2035 or later)
• L 2030 (2025 thru 2034)
• L 2020 (2015 thru 2024)
• L 2010 (2008 thru 2014)
• L Income (sooner than 2008)

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TSP

• Withdrawal Options
• Lump-sum, and/or
• Equal monthly payments, and/or
• Life annuity w/wo survivor annuity, and/or
• Transfer account balance to IRA.
• A one-time opportunity for a partial withdrawal
  either lump sum or transfer balance.
• Must begin withdrawal by age 70 ½.

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Life Insurance

• Eligible to continue coverage provided you are
• Covered at retirement
• Continuous coverage for at least 5 years
  preceding retirement
• Elections available for continuation of coverage.

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Health Insurance

• Eligible to continue coverage provided you are
• Covered at retirement
• Continuous coverage for at least 5 years
  preceding retirement
• Same premium payment post-tax
• Continuation of coverage for spouse provided a
  survivor benefit payable

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Medicare

• Eligible at age 65
• Part A Hospital benefits no cost
• Part B Medical benefits - 96.40
• Part D Prescription
• Primary coverage after retirement
• FEHB Secondary waive calendar year deductables
  and co-payments

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Long Term Care Insurance

• Eligible to continue coverage after retirement.
• Payment options available.
• www.LTCFEDS.com
• 1-800-582-3337

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FEDVIP

• The Federal Employee Dental and Vision Insurance
  Program
• Eligible to enroll as retiree.
• Eligible to continue coverage on post-tax basis.
• www.BENEFEDS.com - 1-877-888-3337

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QUESTIONS

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