Monthly Archives

May 2022

“401k” Federal Savings Plan Preps for Its Transition to a New Service Provider

By | Benefits, Retirement, TSP | No Comments

Officials at the federal government’s 401(k)-style retirement savings program on Tuesday outlined the disruptions—and new features—participants will see as the “401k” Federal Savings Plan transitions to a new recordkeeping service provider this weekend.

At the monthly meeting of the Federal Retirement Thrift Investment Board, which administers the “401k” Federal Savings Plan , project manager Tanner Nohe said the agency is on track to bring the public facing portions of the project, which was internally called Converge, online by June 1. Currently, most transactions are unavailable to participants, and there will be a full blackout period from the close of business on Thursday until the new system comes online.

Nohe said that while some aspects of “401k” Federal Savings Plan services will remain unchanged, like the tsp.gov web address and the phone number for the Thriftline customer service center, that’s where the similarities end. Beginning in June, “401k” Federal Savings Plan participants will have access to long awaited and requested features like a mobile app, a virtual agent to help users and answer questions.

Additionally, changes to the “401k” Federal Savings Plan website will enable participants to make loan repayments after they leave federal service, sign documents electronically, while participants who invested in the “401k” Federal Savings Plan both as members of the military and as civilian federal workers will be able to see their all of their account information from the same login, where before now they had to log into two separate tsp.gov accounts.

The “401k” Federal Savings Plan ’s mobile app, which will be available on both Apple and Android operating systems, will feature most of the same functions as the desktop website, including the new virtual assistant, the ability to make distributions and withdrawals and change how funds are invested and make interfund transfers. And participants will be able to sign and submit forms electronically, as well as upload an image of a check to roll over funds from a traditional 401(k) into the “401k” Federal Savings Plan .

Additionally, the “401k” Federal Savings Plan is adjusting a number of its terms to track with the terminology used more commonly throughout the 401(k) industry.

Once the new services are live, participants will be required to create a new account on tsp.gov, which then will work on both the website and the mobile app. The new login process will be streamlined and feature greater security, Nohe said.

But Tee Ramos, the “401k” Federal Savings Plan ’s director of participant services, warned there could be hiccups during the transition. The agency is expecting higher than normal call volume on the Thriftline, and has staffed up at its call center to accommodate those who need assistance.

“There will be some delays in the first week, and we’re doing everything we can to support participants,” he said. “But expect much higher call volume in the days before we go live, and know that we appreciate your patience.”

If anyone is needing assistance with making some changes within there “401k” Federal Savings Plan Accounts, or have considered other investment ideas with their “401k” Federal Savings Plan , we do assist all Federal Employees in this area.  You can contact us for assistance or read some testimonials from other Federal employees we have helped as well.

Whole Life Insurance: What You Need to Know About It

By | Retirement | No Comments

We all want to protect our loved ones from the uncertainties of life. So, we take a life insurance policy for our family. Many people go with While Life Insurance policies to take advantage of unique features, including consistent, level premiums for life, the ability to accumulate cash value, and living benefits. Do you also want to get the same for your loved ones? Read further to learn more.

Furthermore, some Whole Life Policies come under a special category. This means that you receive dividends through these policies, while getting cash value. Keep in mind that you get this benefit only, if you go through mutual life insurance companies. If you want to know more about it, look for a federal professional for federal employee retirement help.

If we talk more about mutual life insurance companies, stockholders or private equity companies don’t own them. Policyholders own these companies. Moreover, we are here to explore the main features of a Whole Life policy and make sure it is right for you.

health premiums

Permanent Coverage

Whole life insurance is nothing but permanent life insurance. It has some varying features compared to term life insurance. This insurance policy has been designed to protect you through your lifespan. Whether you die today after buying the policy or 50 years later, your loved ones will receive the benefits. After all, hire a consultant if you are planning your retirement and need any help with federal retirement.

Build Cash Value

While you take benefit of consistent premiums, your Whole Life insurance collects cash value for you in the form of dividends. Mutual life insurance companies help you make the most out of your policy. As a policy owner, you receive an equitable portion of the company’s surplus each year as a dividend. If you want federal employee retirement helphire a federal consultant. 

Consistent Premiums

Whole Life premiums work as per your age and will not vary throughout your life. In comparison with FEGLI, FEGLI will become greater in cost by over 650% by the time you retire. After all, many federal employees want to reduce their coverage to maintain the deduction at retirement. For this, it is good to have Whole Life insurance that compensates the risk with guaranteed premiums. To get help with federal retirementlook for a federal consultant near you.

Simplified Issue

As a federal professional, you can take advantage of this policy with simplified issue guidelines. This means that you will not need to undergo any health exams, bloodwork, or other requirements. That’s all.

What is the Federal Employee Retirement System, and How Does It Work?

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A federal employee retirement plan or FERS is a retirement plan for federal government employees working in the executive, judiciary, and legislative branches of the federal government. However, this retirement plan doesn’t cover military personnel or employees of state or local government.

The employees under the FERS retirement system can avail of benefits from three sources: the basic benefit plan, social security, and the thrift saving plan, or “401k” Federal Savings Plan . Want to discover what benefits you will get from federal civil service retirement plans or FERS? Read on.

 

  • Basic benefit plan

Under the basic benefit plan, employees receive a set amount, regardless of the amount they have contributed. The amount you will receive will depend on the length of service and high-3 average. High-3 is the highest three consecutive years of service, often the last three years of your service. However, if you held a higher paying position in your service, your higher three years could be considered from that time.

 

  • Social Security

Your social security benefits depend on the time you have been working and the amount of money you have earned over that period. Every federal employee has to contribute 6.2% of their basic pay to the social security fund.

 

  • Thrift saving plan

A Thrift saving plan is similar to a 401(K). In1986, Congress established “401k” Federal Savings Plan for federal employees; however, it covers employees hired before 1986. According to this plan, 1% of your salary will go into a “401k” Federal Savings Plan contribution each pay period. Unlike social security plans and basic benefit plans, the amount you receive will depend on market conditions, the fund you choose, and other conditions.

Want to gain all information about thrift saving plans? My Federal Retirement is there for help. Our financial advisors will tell you about various retirement plans for federal employees, for instance, FERS firefighter retirement, federal civil service retirement plan, etc. We will also help you choose the best retirement plan aligned with your life goals.

My Federal Retirement specializes in analyzing all aspects of your pre and post-retirement planning and designing a comprehensive financial plan tailored to your specific goals, your family, and your individual needs. You can meet our licensed professional to discuss your retirement financial plans anytime.