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Pension Annuities, Withdrawals and More Questions Answered

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This week, we’re back with a few more questions and comments from readers, covering everything from Civil Service Retirement System and Federal Employees Retirement System coverage to TSP withdrawals.

I was CSRS back in 1977 thru 1982. I received a refund of the retirement funds. I went back into the service in 1983, did my remaining years and retired. In 2000, I returned to civil service and I am now FERS. I am paying back the five years for CSRS. How will they calculate the five years? 

First of all, if you had at least five years of prior CSRS coverage (whether or not you took a refund of retirement contributions), you should have been rehired under CSRS Offset retirement coverage and given a six-month opportunity to choose FERS coverage. If this is not what happened, you should contact your human resources office to find out if you were misclassified under FERS. If so, there’s a remedy under the Federal Erroneous Retirement Coverage Corrections Act, which allows you to go back to CSRS Offset coverage instead of FERS if you choose to.

If you remain under FERS and have more than five years of coverage under CSRS, then you will have a “CSRS component” to your retirement computation. That portion of your benefit will be computed under CSRS rules.

Keep in mind that since you received your refund of contributions prior to March 1, 1991, you can receive credit for this service without paying the redeposit. Your annuity will be subject to a permanent actuarial reduction based on the amount of the redeposit, interest due and your age at retirement. The actuarial reduction will not be applied to an annuity due your surviving spouse. You can avoid the reduction by repaying the refund.

I will have 24 years total at retirement at age 63. I have Federal Employees Group Life Insurance Coverage [at a level of] my salary times one. Lately, everyone is saying to keep it and eventually the government will pay for it. That’s a new one on me.

You can continue basic FEGLI into retirement as long as you were covered for the five years immediately preceding your retirement. The premium is $.325 per $1,000 of coverage per month until you’re 65 and retired. Then, if you elect the 75 percent reduction option at retirement, the premium ends and the coverage begins to reduce by 2 percent per month until you’re left with 25 percent of your original coverage at no further premium. You can also choose no reduction or a 50 percent reduction if you’re willing to pay an additional premium. And you can continue optional FEGLI into retirement if you have been covered for five years and retire on an immediate retirement.

Annuities begin on the first [of the month]. But if you retire on the fourth of any month, you will not start the annuity until the next month, and actually receive it the following month, so you will be out about seven weeks with no pay.

The start date of your retirement is the first day of the month after your last day on the job. (You’re paid your salary through close of business of the date you indicate for your separation on your retirement application.) There’s an exception for employees who retire under CSRS or CSRS Offset that allows retirement to start on the day after the retirement date if the date of final separation is the first, second or third day of the month. Regardless of whether you are retiring under CSRS or FERS, if you select June 15 as your retirement date, for example, this is the day your salary will stop accruing. Your first retirement benefit will be for the month of July, payable on Aug. 1. So you’ll get no compensation for June 16-30. This is why most employees try to retire on the last day of the month—or the first three days of the month in some cases under CSRS or CSRS Offset.

On the TSP issue of required minimum distributions, folks should notify the TSP to send your RMD distribution in mid-December so you can maximize those funds. If your RMD is 4 percent, and those funds gained 4 percent during the year, your TSP would not run out, because it would replenish itself. The RMD is based on the balance of TSP on Dec. 31 of the prior year, so you get another year of earnings on that RMD.

Here is an example of one of the loyal readers of this column who consistently provide supplemental information and insight that’s very helpful. I’d add this note: According to the TSP, if you’re already receiving a series of monthly payments from your account when you turn 70½, your monthly payments will be used to satisfy the IRS minimum distributions requirement. If the total amount of your monthly payments does not satisfy the requirement, the TSP will issue a supplemental payment for the remaining amount in December. This is automatic if your monthly payments are not high enough to satisfy your annual RMD. Your monthly payments can be as low as $25.

I don’t understand why the federal government can’t come up with an annual statement, like the Thrift Savings Plan gives you an estimate. Why can’t you just go to the Office of Personnel Management website and get the info? I would think that would keep your information up-to-date and it wouldn’t take so long to finally get your first retirement check.

The problem is that OPM doesn’t have access to your current information, since your personnel and payroll data is not transferred from your agency to OPM until you have separated for retirement. In many cases, agency payroll offices do provide an annual benefits statement so you can get a snapshot of your retirement and insurance benefits. For example, some USDA federal employees who have their payroll processed through the USDA National Finance Center will receive an annual benefits statement. It describes the estimated value of your retirement benefit, your TSP account value, and when you’ll be eligible for Social Security and Medicare benefits.

Now for others or anyone who wants to receive their annuity estimate in a free Federal Retirement Review and go over all of your benefits can request one from one of our Chartered Federal Employee Benefits Consultants. So Request and Schedule your review today!

Treasury Suspends G Fund Investments, Retirement Backlog Grows

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Treasury Secretary Steve Mnuchin informed Congress this week that his department would cease its investment in two federal retirement programs as part of its extraordinary measures intended to delay running into the debt ceiling.

On Saturday, the federal government hit its borrowing limit, and last week Mnuchin informed Congress that he would be suspending the department’s issuance of State and Local Government Series securities. Mnuchin followed up Monday, sending Congress a letter informing lawmakers that he would suspend investments in the Civil Service Retirement and Disability Fund, as well as the Postal Service Retiree Health Benefits Fund.

And on Tuesday, the Treasury secretary informed House Speaker Nancy Pelosi that he would suspend investment in the Thrift Savings Plan’s G Fund, which is made up of government securities, to avoid breaching the debt ceiling. With these actions, and an influx in revenues when federal income taxes are due in April, officials believe the Treasury Department can continue to fund government operations “for several months” before Congress will need to act to raise the debt limit again. Lawmakers hope to do so when they pass appropriations bills to set spending for the 2020 fiscal year this fall.

Federal employees should not worry too much about their retirement savings, though. Mnuchin told Congress that once the debt limit is raised, his department will make these investment funds whole once again.

Elsewhere on Capitol Hill, some lawmakers plan to introduce legislation to make the federal government’s defined benefit retirement programs more generous.

Rep. John Garamundi, D-Calif., sent a “Dear Colleague” letter to lawmakers asking them to cosponsor the CPI-E Act, a bill that would base Civil Service Retirement System and Federal Employees Retirement System cost of living adjustments on the Consumer Price Index for the Elderly, rather than the currently used CPI for Urban Wage Earners and Clerical Workers.

“The CPI-E is the most accurate and balanced measure of the real costs that seniors face in retirement,” Garamundi wrote. “Current measures do not adequately take into account the rising expenditures of retirement, such as housing and health care costs. This inadequate accounting amounts to an effective decrease in benefits for those who rely on these federal programs.”

When introduced, the bill will have dozens of cosponsors, including members of both parties. Garamundi introduced similar legislation in 2017, although it never emerged from committee.

The Office of Personnel Management reported Tuesday that the volume of federal employees retiring in January and February, when the agency experiences an annual surge, was down compared to 2018.

In January, 13,264 employees filed for retirement, and last month 10,792 employees applied. That’s down from last year, when 14,590 employees requested their retirement benefits in January, followed by 13,290 in February.

The 35-day partial government shutdown could account for some of the drop in retirement requests, as unfunded agencies furloughed HR employees, making it impossible for some to retire if they had not announced their intent before the lapse in appropriations began last December.

Over the two-month period, OPM processed 18,705 retirement claims, in line with the same period in 2018. Although the retirement backlog spiked from 18,019 claims in December 2018 to 23,121 in January, OPM was able to maintain that figure last month, as it only increased slightly to 23,370.

If your within six Months of your retirement date and would like a Free Federal Retirement Review please visit our Contact Us page and request and schedule your review today.

Thousands of Feds Still Await Back Pay After Shutdown

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Despite efforts to ensure that federal workers impacted by the 35-day partial government shutdown received back pay as quickly as possible, an official at the government’s largest payroll processor confirmed Thursday that “thousands” of employees at the Homeland Security Department are still waiting for their first paycheck of the year.

And employees at other agencies say they still are missing a significant chunk of what they were owed and it is unclear when they will be made whole.

An official at the National Finance Center, which is housed within the Agriculture Department and provides payroll services to more than 130 agencies across the federal government, confirmed Thursday that processing back pay has been “a big issue throughout all of DHS.” Due to an error related to “adjustments of pay,” HR employees have been working overtime since the government reopened to fix each employee’s pay manually.

“This was departmentwide for DHS, and there are thousands of individual, manual payments they’ve had to do,” the official said. “It’s crazy over there.”

The National Finance Center official said all Homeland Security employees still awaiting back pay should see their back pay sometime between today and Feb. 12 as essentially “three pay checks in a single deposit.”

Acting Office of Personnel Management Director Margaret Weichert touted the administration’s efforts to secure back pay in a tweet last week, suggesting that employees were “getting paid in record time” and that most employees “will be paid by [Jan. 31].” A senior administration official told Government Executive that although the vast majority of the 800,000 employees either furloughed or working without pay during the shutdown have received all of their back pay, officials were committed to ensuring remaining workers are made whole as swiftly as possible.

“The administration took unprecedented steps to ensure federal employees impacted by the shutdown received back pay within a week and before the end of the month,” the official said. “The challenges of executing a mid-cycle paycheck in record time led to a modest number of exceptions, but the vast majority of affected employees welcomed their back pay on or before January 31, rather than waiting until their next scheduled pay day of February 8.”

Officials with the American Federation of Government Employees said there also have been a number of issues surrounding back pay payments from the Interior Business Center, a payroll processor within the Interior Department that services a variety of federal agencies. In addition to incomplete payments, those paychecks have not been reflected in agency HR portals, and a number of important payroll deductions were not taken out of the payments.

A National Finance Center official confirmed that it also did not take out deductions like court-ordered payments or union dues.

“On the back pay issue, we’ve got people here [at the National Science Foundation] who are still missing between 25 and 33 percent of our pay,” said David Verardo, president of AFGE Local 3403, which represents around 1,000 NSF employees. “This is from the Interior Business Center—that’s who handles our payroll—and a whole lot of deductions weren’t taken out, including child support, alimony and, of course, union dues. The agency has told us that we have to just deal directly with those creditors. I don’t know how that works, but it seems like it involves law enforcement and the courts, so we’re bracing for some difficult times.”

The issue appears to be widespread. Officials at the Federal Railroad Administration also reported that they haven’t received all of their back pay yet, and employees at the National Archives and Records Administration also experienced issues where various deductions, from child support and alimony payments to Thrift Savings Plan loan repayments and union dues, were not taken out of their paychecks.

A post on the Interior Business Center’s website confirms that it only took “required deductions” out of back pay payments, such as taxes, insurance premiums and federal retirement program contributions.

“For other deductions, it depends on the type of deduction as to how retroactive payments will be made,” the payroll processor wrote. “In general, voluntary allotments such as Combined Federal Campaign and allotments to financial institutions will not be deducted from back pay. Another example is court-ordered payments, which may have required employees to continue to make payments via personal checks while in non-pay status.”

In a statement, the Interior Business Center said it is aware of issues surrounding missing payroll deductions, and will provide additional information to agencies “as it becomes available.” Additionally, a spokesperson said all outstanding back pay should reach employees in their next pay check, which is due to go out by Feb. 12.

“The overwhelming majority of employees received their pay on or by Jan. 31, 2019,” a spokesperson said. “The small group of employees affected (those who have not received their back pay in full) due to issues such as personnel status or data entry will receive a full interim payment in the upcoming pay cycle.”

TSP Proposes New Shutdown Loan Rules, OPM Considers Health Care Portal, and More

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Officials with the agency that administers the federal government’s 401(k)-style retirement savings program published an interim rule Tuesday that would ensure federal employees impacted by a government shutdown can take out loans on their Thrift Savings Plan accounts regardless of how long the lapse in appropriations is expected to last.

Posted in the Federal Register by the Federal Retirement Thrift Investment Board, which governs the TSP, the rule narrowly applies to federal workers who are either furloughed or forced to work without pay during a lapse in appropriations. Before this week, any employee in a “non-pay status” was eligible to take out a loan, so long as that status was expected to last less than 30 days.

As a result, there was uncertainty regarding whether employees at unfunded agencies could apply for TSP loans during the 35-day partial government shutdown, especially as it stretched into the third and fourth week. Earlier this month, TSP officials reported that they saw a 5 percent increase in the issuance of TSP loans during the lapse in appropriations, compared to a 26 percent increase in withdrawals, a more onerous process that forces participants to incur a 10 percent tax penalty and stop contributing to their accounts for six months.

In the rule filing, officials said they took great pains in order to come up with a way to implement the rule immediately.

“This interim rule applies only to participants who are furloughed or excepted from furlough (i.e., continuing to work and earn pay, but their pay is delayed until appropriations are authorized) due to a government shutdown,” the rule stated. “The FRTIB’s staff and contractors have designed manual workarounds to highly automated business processes in order to make this interim rule effective immediately so these participants will have access [to] TSP loans in the event of another government shutdown.”

Additionally, the rule allows TSP participants to request a suspension of their loan payments in the event of a shutdown to avoid the potential that they could default. And the agency is reexamining how it handles TSP loan applications from federal employees in other forms of non-pay status.

“Participants who are not receiving pay for other reasons (e.g., administrative furlough, voluntary leave of absence, seasonal work, sabbatical, disciplinary suspension) remain ineligible to request a loan,” the rule stated. “The FRTIB is considering whether to allow these participants to request loans in non-pay status and will address this subject in the final rule.”

Meanwhile, the Office of Personnel Management is thinking about a new way to help federal workers decide which insurance plan to enroll in as part of the Federal Employees Health Benefits Program. Meritalk reported Monday that the agency has issued a Request for Information seeking vendors to develop a “one-stop shop” portal for employees to compare and then enroll in health care plans.

Although OPM currently offers the ability to compare different FEHB plans on its website, the enrollment process and other customer service functions are largely decentralized across a multitude of agencies’ HR departments.

Among the functions OPM hopes to include in the portal are enrollment and decision-making support, enrollment processing, as well as enrollment and premium reconciliation and data collection and reporting. Responses to the request are due March 11.

On Tuesday, OPM announced that it is extending the deadline for the Combined Federal Campaign, the federal government’s annual charity giving effort, until Feb. 22.

The campaign was disrupted by the partial government shutdown, as donations are primarily made by way of payroll deductions. As a result, many payroll offices at unfunded agencies were not open to receive or process CFC pledges. Additionally, federal workers impacted by the shutdown would have been unlikely to make charity donations without knowing when they would next receive a pay check.

Although the deadline for making donations through the campaign was delayed, OPM said in a press release that money still will begin being disbursed to charities on April 1 as originally scheduled.

We also have other alternatives to where you don’t need to take a loan from your TSP to consider. Going six months without contributions is a tough penalty. Learn more by contacting us soon.

Congress Looks For New Ways to Pay Federal Employees

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Many of the 800,000 federal workers on furlough or working without pay during the now-month-long shutdown will miss their second paycheck on Jan. 25.

Some members of Congress are offering bills to reduce the financial impact of the shutdown on feds, even as the White House and Democratic lawmakers remain at odds over funding and reopening the government.

Rep. Anthony Brown (D-Md.) is pushing a bill that would permit the more than 400,000 federal employees working without pay — including FBI agents and airport security screeners — to collect unemployment benefits.

The Labor Department recently affirmed its policy of not permitting working people from collecting unemployment, even though they are not being paid.

“If Trump is going to continue to hold federal employees hostage, then we will ensure they yare provided for during the shutdown,” Brown said on Twitter.

Rep. Peter Welch (D-Vt.) wants to keep paying feds who work during a shutdown.

“It defies common sense and anyone’s definition of fairness to require federal employees to work without pay,” Welch said in a statement. His bill would apply to future shutdowns as well.

Rep. Eleanor Holmes Norton (D-D.C.) is offering a bill to give back pay to contractors in custodial, retail, food service, security and other typically low-wage jobs supporting federal activities.

Rep. Bob Gibbs (R-Ohio) offered a bill to pay employees required to work, as a one-off appropriation for the current shutdown. His bill attracted 23 co-sponsors – all Republicans. Other members have offered similar legislation.

Many feds are dipping into their retirement funds for cash during the shutdown. Rep. Pete Olson (R-Texas) wants to let them do so without incurring any penalty.

Commerce Secretary Wilbur Ross, meanwhile, said in an interview on CNBC’s Squawk Box that feds should look to their banks for assistance.

Asked about feds resorting to food banks because of missed paychecks, Ross said, “I know they are and I don’t really quite understand why, because I mentioned before, the obligations that they would undertake — say borrowing from a bank or a credit union — are in effect federally guaranteed, so that the 30 days of pay that some people will be out, there’s no real reason why they shouldn’t be able to get a loan against it, and we’ve seen a number of ads from financial institutions doing that.”

House Speaker Nancy Pelosi dismissed Ross’s comments.

“Is this a ‘let them eat cake’ kind of attitude? Or call your father for money?” Pelosi asked in her weekly press conference. “Or this is character building for you it’s all going to end up very well just so long as you don’t get your paychecks… I don’t quite understand why as hundreds of thousands of men and women are about to miss a second paycheck tomorrow.”

Plan to Pay Excepted Feds Immediately Gains Momentum

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With just days remaining until federal employees at unfunded agencies miss their second straight pay check, an idea to compensate at least some of them promptly appears to be gaining traction on Capitol Hill.

Two weeks ago, Sens. Ron Johnson, R-Wis., and Susan Collins, R-Maine, introduced the Shutdown Fairness Act (S. 113), which would make sure federal workers at unfunded agencies who are currently working without pay will get their pay checks on time, instead of after the government reopens. The measure would not compensate furloughed employees, although last week President Trump signed legislation to provide them with back pay after agencies reopen.

“All employees required to work during the shutdown to perform national security and other critical functions should receive paychecks on a current basis,” Collins said in a statement. “It is not fair to force employees to work and not pay them. Hundreds of thousands of federal employees and their families are being harmed by the partial government shutdown, and I am continuing to work with my colleagues and the White House to bring it to an end as quickly as possible.”

Jan. 18 marked the end of the second full pay period of the government shutdown. If Congress cannot reach an agreement on how to fund the government this week, roughly 800,000 employees, of which at least 420,000 are working without pay, will miss their second straight pay check.

Although the bill was introduced with four other Republican cosponsors, that tally had grown to 20 by Tuesday. And although he is not yet an official sponsor, Sen. Mark Warner, D-Va., threw his support behind the idea in multiple news interviews.

“The fact is, since we have already agreed to pay them when we reopen, why shouldn’t we at least go ahead and, even if we are shut down, pay these federal workers come Thursday, so they don’t have to incur additional pain and suffering?” Warner said Friday.

Warner repeated that sentiment on “Meet the Press” on Sunday. And on Tuesday, Warner introduced the Stop Shutdowns Transferring Unnecessary Pain and Inflicting Damage in the Coming Years Act, an effort to prevent future government shutdowns, similar to legislation introduced by Sen. James Lankford, R-Okla., and others last week.

Lankford’s bill would institute an automatic continuing resolution at existing spending levels in the event that Congress fails to approve an appropriations package, although the approved spending would decrease by 1 percent after 90 days, and an extra 1 percent for each 30 days thereafter. But Warner’s bill would maintain existing spending levels for all unfunded agencies, and end appropriations for Congress, its associated agencies and offices, and for the Executive Office of the President.

“The Stop STUPIDITY Act takes the aggressive but necessary step of forcing the president and Congress to do the jobs they were elected to do,” Warner said in a statement. “It is disturbing that the daily lives of hundreds of thousands of workers are at the mercy of dysfunction in Washington.”

Labor Dept. Denies Request That Excepted Feds Be Eligible for Unemployment

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Labor Secretary Alex Acosta has rejected an effort by District of Columbia Mayor Muriel Bowser to allow federal employees working without pay during the partial government shutdown to be eligible for unemployment benefits while agencies remain shuttered.

On Monday, Bowser sent a letter to Acosta requesting the change in policy. Currently, furloughed federal workers and idle contractors in a number of states can apply for unemployment, although they are expected to return the money when they return to work and Congress has approved back pay. But excepted employees, whose pay is guaranteed once the government reopens, cannot apply for unemployment.

In the letter, Bowser said it is unfair that employees working without pay are effectively in worse financial straits despite arguably sacrificing more during a shutdown.

“These federal workers are providing the nation and our region with vital services such as public safety,” she wrote. “Without a steady paycheck or unemployment benefits, hardworking federal workers and their families are forced to make difficult decisions: pay the mortgage or buy groceries; pay for a doctor’s appointment or pay to keep the lights on. These are decisions no one should have to make.”

But on Thursday, Bowser reported that her request was denied and decried the decision. She noted that in Washington, D.C., alone, more than 7,500 furloughed federal workers and contractors had already filed for unemployment. That number increases to roughly 9,000 federal workers, not including contractors, in the D.C. metro area.

“Federal workers and their families continue to pay the highest price for this unnecessary and unprecedented shutdown,” Bowser said in a statement. “It is unconscionable for the Trump administration to acknowledge that these individuals are working without pay and with no end in sight, but will not make the smallest effort to help them by allowing states to offer unemployment insurance benefits.”

The line between federal workers who are furloughed and excepted is shifting, as agencies like the IRS recall significant numbers of workers to restore services despite the lapse in appropriations. Observers have been vocal in questioning the legality of such decisions, and the constantly loosening interpretation of what constitutes the protection of life and property is the subject of a lawsuit by the National Treasury Employees Union.

Friday marked the end of the second full pay period of the shutdown, which is in its 28th day. Agencies will be required to send out new furlough notices next week, as the shutdown passes the 30-day mark. If a deal to reopen the government is not reached by Tuesday, employees of unfunded agencies likely will miss their second straight paycheck.

It’s Official: Furloughed Feds Will Receive Back Pay Once the Shutdown Ends

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Why Retirement Processing Takes So Long

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The busiest time of the year for retirement claims processing at the Office of Personnel Management is fast approaching. At the end of November, OPM had an inventory of 19,162 unprocessed retirement applications. This will most likely significantly increase over the next few months, because many federal employees plan their retirements at the end of the year in order to maximize their lump sum payout of unused annual leave.

The spike in end-of-leave-year retirements presents a number of challenges for retirement processing. According to a recent OPM inspector general report, the timely processing of initial retirement payments remains a challenge for the agency. OPM’s 2018-2022 strategic plan sets a target of achieving an average case processing time of 60 days or less. The agency’s Retirement Services unit appears to have met that goal in fiscal 2018, with an average of 59 days. But its claims backlog as of September was 17,628, more than 4.5 percent higher than at the same time a year ago.

According to the IG report, the steps Retirement Services is taking to address delays in processing include:

  • Continue to integrate improvements for correspondence and claims processing.
  • Enhance reporting tools to monitor and address Retirement Services workloads.
  • Use overtime to assist with timely processing.
  • Work with the agency’s chief information officer to explore new uses of technology to help improve processing and reduce wait times.
  • Provide monthly feedback to agencies and payroll offices and alert them of trends and improvement opportunities.
  • Identify training needs for agencies and conduct workshops on the retirement application process.

Once your retirement application is in the hands of OPM, there’s not much you can do but wait. But there are steps you can take beforehand to help ensure the process runs as smoothly as possible:

  • Double-check your application to make sure you’ve answered all of the questions on it. Complete your application electronically, if possible. OPM will not accept corrections in certain sections of the application form.  We will assist or completely fill this paperwork out and mail or email it to you.
  • Keep a copy of your completed application.
  • Be sure to complete the Marital Information and Annuity Election sections of the application. That applies whether you’re married, single, widowed or divorced. If you’re married, be sure to include a copy of your marriage certificate with your  application. If you’re divorced, you only need to include a copy of your court order or divorce decree if there was a portion of your retirement or survivor annuity awarded to your former spouse.
  • If you’re married and your spouse is waiving their right to the maximum spousal survivor annuity, be sure to have their signature notarized on the Spouse’s Consent to Survivor Election portion of the application.
  • If you’ve performed active duty military service, be sure you’ve included the documentation of your service and information related to military retired pay in Schedules A and B of the application.
  • Be sure to document that you’ve had five years of coverage under Federal Employees Health Benefits Program, especially if you were covered under your spouse’s FEHBP plan or you’re using coverage under TRICARE within five years of your retirement. According to an OPM training video, 20 percent of all retirement errors involve not documenting five years of FEHBP coverage.

For those of you who will be retiring from federal service in the next few weeks, let us be among the first to congratulate you and wish you a wonderful and rewarding life after government.

If you need any assistance on reviewing prior to separating, we do complete Federal Retirement Reviews, all the way from planning and preparing for your retirement, filling out retirement form packages, TSP rollovers, Pension Maximization, talk FEHP vs Medicare.  Contact Us to request your Retirement Review and Assistance today. 

See Who Would Get Furloughed in a End of the Year Shutdown

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The federal government is about a week away from shutting down, though only about 41 percent of civilians report to agencies at risk of having their doors shuttered.

Congress has already allocated a majority of full-year spending, with President Trump signing legislation that accounts for 75 percent of annual discretionary appropriations. Those bills set line-by-line spending for the departments of Defense, Labor, Health and Human Services, Education, Energy and Veterans Affairs, among other agencies.

The departments of Transportation, Housing and Urban Development, State, Interior, Agriculture, Treasury, Commerce, Homeland Security and Justice, as well as other independent agencies, are currently operating under a continuing resolution set to expire Dec. 21. Those agencies will be forced to shut down after that date if Congress fails to act.

About 850,000 employees work at those agencies, and about 345,000, or 41 percent, of them would be subject to furloughs under a partial shutdown, according to the most recent data federal agencies have made available on their contingency planning. An update to Office of Management and Budget guidance during the Obama administration required agencies to refresh their shutdown plans at least every two years starting in 2015.

The plans vary significantly from agency to agency, with some enabling nearly their entire workforces to continue working because of the funding stream that pays their salaries or because their jobs are necessary to protect life and property. Other agencies, such as NASA or the Housing and Urban Development Department, would send home about 95 percent of their employees. Those working during a shutdown must go without pay until the government reopens, while furloughed workers are not guaranteed back pay at all. Historically, Congress has always taken action to provide those lost wages.

Some agencies have changed their plans drastically, following 2017 guidance from OMB Director Mick Mulvaney that instructed them to use “carry-forward funding” and “transfer authority” as much as possible to mitigate the impact of an appropriations lapse. Last year, for example, the Environmental Protection Agency planned to furlough 95 percent of its employees during a shutdown. This year, it will use unexpired multi-year and no-year funding to keep nearly its entire workforce on the job, sending home only a portion of the inspector general’s office.

Some agencies, such as the State Department, have updated their plans but have not spelled out exactly who would be furloughed. During the 16-day shutdown in 2013, State sent home just a few hundred of its 70,000 employees, but warned it would have had to add thousands to that list if the government had remained closed much longer.

Below is a chart detailing the furlough rates of every agency with more than 1,000 employees that would be subject to a shutdown come Dec. 21: