What do You need to Know About Special Retirement Supplement?

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Do you know about the FERS supplement? An important retirement benefit plan for individuals who retire before the age of 62, it is also called the Special retirement supplement or SRS. Many individuals retiring before 62 are not aware of FERS benefits and thus couldn’t make a wise decision.

Special retirement supplement offers various benefits, such as it bridges the money gap if you retire before age 62 as you don’t receive social security until you reach age 62. But, not all federal employees are eligible for a special retirement supplement.

Who gets FERS special retirement benefits?

Federal workers younger than age 62 eligible for an unreduced federal employee retirement system are also eligible for temporary extra benefit, i.e., FERS annuity supplement. Firefighters, air traffic controllers, and law enforcement officers who retire under special provisions and FERS retirees who retire at age 60 with a minimum of 30 years of service are also eligible. If you are a firefighter planning your retirement, learn about FERS’s special supplement.

Rule for eligibility

1) If the employee has at least one calendar year of service at the time of retirement

2) Individuals retiring at or after reaching MRA with at least 30 years of service

3) individuals retiring at age 60 with at least 20 years of service

So, if you are eligible for FERS special retirement supplement, estimate it with the help of the below-mentioned formula.

 

 

How to estimate FERS special retirement supplement?

Get your annual social security statement handy to estimate your supplement amount. You also need to know how many years of creditable service you would have at the time of your retirement. Now, you can use the formula.

Years of creditable service/40 * your age 62 social security benefit = your estimated FERS supplement. Calculating FERS supplement benefits is an extremely time-consuming and complex task; take the help of a consultant from My Federal Retirement Help.

We are a team specialized in designing a comprehensive financial plan considering all aspects related to pre-retirement and retirement. We make integrated financial plans tailored to your specific goals and your family’s needs.

Reduction in FERS Supplement

FERS supplement is treated as social security income, so if you take the supplement before the full social security retirement age, your supplement can be subjected to taxes and reductions. Also, if you take a part-time job after retiring from federal service, your supplement may get reduced. Contact an expert to get more clarity on this.

My Federal Retirement Help is a team of planners and advisors who can help federal employees get into the next stage in their life by assisting them with a retirement plan, paperwork, and its submission to OPM.

TSP Preps for Its Transition to a New Service Provider

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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 Thrift 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 TSP, 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 TSP 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, TSP 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 TSP website will enable participants to make loan repayments after they leave federal service, sign documents electronically, while participants who invested in the TSP 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 TSP’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 TSP.

Additionally, the TSP 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 TSP’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 TSP Accounts, or have considered other investment ideas with their Thrift 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

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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 TSP. 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 TSP for federal employees; however, it covers employees hired before 1986. According to this plan, 1% of your salary will go into a TSP 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.

USPS Converted 63,000 Non-Career Employees to Permanent Jobs Over the Last Year

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he U.S. Postal Service has converted 63,000 part-time or non-permanent workers into career positions, with leadership saying it has helped stabilize the workforce after years of escalating turnover.

USPS has struggled for years with high turnover rates—particularly within its non-career workforce—leading postal management to identify new strategies to keep them on as it aims to grow its rolls. The conversions have also helped the Postal Service address employee availability issues during the COVID-19 pandemic, the agency said in a report marking the one-year anniversary of the unveiling of Postmaster General Louis DeJoy’s 10-year business plan.

The Postal Service has since 2010 increasingly relied on non-career workers, such as postal support employees and mailhandler assistants, as a cheaper alternative to reduce labor costs as part of efforts to keep pace with shrinking mail revenue. Non-career employees generally receive a less generous benefits package and lower pay than their permanent, full-time counterparts. The agency’s non-career staff grew by more than 60% between 2010 and 2017. At least some of the conversions were promised as part of collective bargaining negotiations.

The USPS inspector general has for years highlighted the problems with the Postal Service’s growing reliance on non-career workers. It found in a 2016 report, for example, that turnover the agency’s unionized, career workforce turns over every year was 1.2%, while in 2014 the non-career workforce had a 29% quit rate. By 2016, the turnover rate for non-career employees had climbed to 43%.

DeJoy previously laid out plans to reduce turnover by focusing on better options for non-career employees, highlighting the issue in testimony to Congress and in his 10-year plan. The trend marks a departure from the first months of DeJoy’s tenure, when the postmaster general led an effort to slash tens of thousands of non-union jobs by offering early retirement incentives and layoffs. USPS has since gone on a hiring spree and DeJoy has speculated he may add up to 100,000 positions compared to when he took over to meet growing package demand.

The Postal Service ended 2021 with nearly 517,000 career employees, its highest total since 2012. The non-career workforce has remained fairly steady in recent years at 136,000.

USPS boasted that it has committed more than $6 billion in core infrastructure over the last year, part of DeJoy’s promise to invest at least $40 billion by 2031. About half of the obligated total has gone toward the Postal Service’s controversial contract for new delivery vehicles, only about 20% of which are so far electric. Other investments have included new processing equipment, improvements to post offices and technology upgrades.

Postal management also highlighted its improvements in delivering mail on time, though it is still falling well short of its goals. It has also slowed down delivery for about 40% of First-Class mail, making it easier to hit its targets. USPS promised more changes to “optimize” its network, saying those plans are still in the works.

“These efforts—impacting all aspects of our operations and infrastructure—are being refined now and will be deployed in stages this year and in the coming years,” the Postal Service said.

USPS also again noted its “judicious” use of its new authority to raise prices above inflation, though it just this week proposed hiking its rates for the second time by nearly the fully allowable amount. Through a complicated formula derived from factors including inflation, declining mail volume and retiree costs, USPS could have raised its First-Class mail rates in July by 6.507%. It chose to raise them by 6.506%. The Postal Service has generated nearly $2 billion in annualized revenue from previous increases, the agency said.

If you want to know more information, please let us know via our Contact us

Consider these Things if you want to retire within 5 Years

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If you want to retire from your federal government job within five years, you should know some important things. After all, you should make sure everything is right for a great exist from your federal career.

In this article, we have included four things that you should do to retire within five years of your job. You can also contact a federal consultant to plan your federal retirement to gain the most out of it.

Remember to keep your insurance into retirement

It is always helpful to keep the insurance in your retirement, but not all are able to do so. You need to follow essential rules to keep the insurance into retirement. Eligibility for FEHB is:

• You need to enrol in FEHB for a minimum of five years before retirement.
• You should be covered under FEHB when retiring.

While FEHB has rules to keep it into retirement, FEGLI has certain rules. You need to follow all these rules to carry your insurance to your retirement. To understand the rules in detail, call a federal consultant. They will also help you with FERS special supplements.

Consider your retirement income and expenses 

If you are a federal employee, you should know that you have three primary income sources: FERS pension, social security, and your TSP. If you don’t know how these incomes sources work, hire a federal consultant. They will explain each technical point and help you plan your federal retirement.

medicare-supplement

Know the decision you make at retirement 

Mainly, three big decisions you usually make at your retirement include survivor benefit, life insurance, and TSP. The survivor benefit is when you have to offer your spouse a piece of your pension. Life insurance helps you take care of all your medical expenses. After your retirement, you have to decide how you will use your TSP funds or how you will invest them. Learn more about these three terms with a federal consultant. They will help you plan your retirement in the right way.

Choose a retirement date

The last important thing to decide to retire within five years of federal service is to choose a specific day. Choosing a date to retire makes a big difference in how you receive your pension. If you don’t know anything about planning your retirement within five years of your job, hire a federal consultant. They will help you in everything from planning to knowing about FERS special supplement. That’s all.

Know About Switching From Federal Service to Private Sector

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Are you thinking of switching from your federal career to the private sector? Before you switch, you need to learn some important things about it. After all, if you have made your decision, then stay with this blog to learn more.

You are not alone if you want a transition in your federal service. Many people like you want to work in the private sector by switching from their federal life. After all, you may think of doing so to make more money with less hassle. But keep in mind that it is not easy to make a transition in your federal career. You may not get some benefits such as civil service retirement benefits for federal employees in a private-sector job.

Moreover, your private sector employment will come with some benefits as well as some downsides. Keep reading this post to know the reasons for switching from a federal job to the private sector.

medicare-supplementSalary

One of the reasons you think of changing your federal career is salary. You may have an offer from the private sector with a higher salary, and so you want to make a switch. But you should know that retired federal employees gain huge retirement and social security benefits you may not get in the private sector. After all, you can consult a federal professional before leaving your federal job. A professional will help you with the federal government pension plan calculator and other tools.

Health insurance

Health insurance is one of the great benefits you get as a federal employee. And due to this, many people don’t want to leave the federal government. You know that health costs are rising day by day, so it is crucial to have an affordable health plan for you and your family.

Further, many contracting companies offer more affordable health insurance than federal employees. This is the reason why people want to switch. But you should not underestimate the civil service retirement benefits for federal employees. You may not get it in a private job.

Life insurance

FEGLI is the best health insurance program that allows federal employees to take advantage of insurance regardless of health issues. You may not get this benefit in the private sector. On the other hand, if you have good health, you may get cheaper options in the private sector.

Pension

As a federal employee, you know that you get a pension on your retirement, which is a huge perk. While many contracting companies offer a similar plan to the TSP, only a few will have a pension plan. For these civil service retirement benefits for federal employees, many people don’t want to switch. That’s all.