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“401k” Federal Savings Plan Funds Tumble Through the Month of October

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For the third straight month, nearly every portfolio in the federal government’s 401(k)-style retirement savings program continued their descent, mirroring larger trends in financial markets.

The small- and mid-size businesses of the “401k” Federal Savings Plan S Fund saw the worst performance, falling 6.26% last month. So far this year, the S Fund has grown 2.03%. The I Fund’s international offerings lost 3.22% in October, bringing its 2023 gains to 3.49%.

The common stocks in the C Fund finished last month 2.10% in the red. Since January, the C Fund has increased 10.67%. And the fixed income (F) fund fell 1.58%, bringing its performance this year to -2.61%.

The “401k” Federal Savings Plan G Fund, which is made up of government securities, was the only “401k” Federal Savings Plan portfolio to finish October in the black, growing by its statutorily mandated rate of 0.40%. So far this year, the G Fund is 3.40% in the black.

Each of the “401k” Federal Savings Plan lifecycle (L) funds, which shift toward more conservative investments as participants get closer to retirement, likewise lost value last month. The L Income Fund, designed for people who have already begun making withdrawals, fell 0.56%; L 2025, 0.90%; L 2030, 1.77%; L 2035, 1.99%; L 2040, 2.20%; L 2045, 2.39%; L 2050, 2.57%; L 2055, 3.04%; L 2060, 3.05%; and L 2065, 3.05%.

Let’s talk about some other investments that can guarantee you 100% safety of principal, reasonable rate or return and to never lose another penny.  Schedule your appointment today with a Federal Retirement Consultant.

“401k” Federal Savings Plan Rollover: Taking Control and Managing Risk

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 “401k” Federal Savings Plan Rollover: Taking Control and Managing Risk

When it comes to retirement planning, there are few options as attractive as “401k” Federal Savings Plan s ( “401k” Federal Savings Plan ). These plans offer federal employees and members of the uniformed services a secure and tax-advantaged way to save for their future. However, as retirement approaches, many individuals face the challenge of what to do with their “401k” Federal Savings Plan funds. This is where “401k” Federal Savings Plan Rollovers into Indexed Annuities can provide a solution.

“401k” Federal Savings Plan Rollovers into Indexed Annuities allow individuals to take control over their “401k” Federal Savings Plan savings and manage the risk associated with market volatility. By rolling over their “401k” Federal Savings Plan funds into an indexed annuity, individuals can enjoy the safety of principal and the potential for lifetime income. In this article, we will explore the benefits of “401k” Federal Savings Plan Rollovers into Indexed Annuities and how they can help you secure your financial future.

Benefits of “401k” Federal Savings Plan Rollovers into Indexed Annuities

One of the key benefits of “401k” Federal Savings Plan Rollovers into Indexed Annuities is the safety of principal. With an indexed annuity, your initial investment is protected from market downturns. This means that even if the stock market crashes or the economy takes a hit, your principal will remain intact. This provides peace of mind and ensures that your hard-earned savings are secure.

Furthermore, “401k” Federal Savings Plan Rollovers into Indexed Annuities offer the potential for lifetime income. An indexed annuity allows you to convert your “401k” Federal Savings Plan funds into a stream of income that will last for the rest of your life. This can provide a stable and reliable source of income in retirement, ensuring that you can maintain your standard of living and enjoy the retirement you deserve.

How “401k” Federal Savings Plan Rollovers into Indexed Annuities Work

The process of rolling over your “401k” Federal Savings Plan funds into an indexed annuity is relatively straightforward. First, you need to select an indexed annuity provider that offers competitive rates and favorable terms. Once you have chosen a provider, you will need to fill out the necessary paperwork to initiate the rollover.

After the rollover is complete, your “401k” Federal Savings Plan funds will be transferred to the indexed annuity. From there, your funds will be invested in a combination of fixed and indexed accounts. The fixed accounts provide a guaranteed interest rate, while the indexed accounts offer the potential for higher returns based on the performance of a specific index, such as the S&P 500.

Managing Risk with “401k” Federal Savings Plan Rollovers into Indexed Annuities

One of the main reasons individuals choose “401k” Federal Savings Plan Rollovers into Indexed Annuities is to manage the risk associated with market volatility. By diversifying their investments and allocating a portion of their “401k” Federal Savings Plan funds to an indexed annuity, individuals can reduce their exposure to the ups and downs of the stock market.

Furthermore, indexed annuities offer a unique feature known as a participation rate. This rate determines how much of the index’s gain will be credited to your annuity. For example, if the participation rate is 80% and the index gains 10%, your annuity will be credited with an 8% gain. This feature allows individuals to participate in market gains while still protecting their principal.

Considerations for “401k” Federal Savings Plan Rollovers into Indexed Annuities

While “401k” Federal Savings Plan Rollovers into Indexed Annuities offer many benefits, it is important to consider a few key factors before making the decision to rollover your “401k” Federal Savings Plan funds. First, it is essential to evaluate the fees associated with the indexed annuity. Some annuities have high fees, which can eat into your returns over time. Therefore, it is crucial to carefully review the fee structure before committing to a rollover.

Additionally, it is important to understand that indexed annuities have a cap on the potential returns. This means that even if the underlying index performs exceptionally well, your annuity gains will be limited. While the safety of principal is a significant advantage, it is essential to weigh this against the potential for higher returns in other investment options.

Conclusion

“401k” Federal Savings Plan Rollovers into Indexed Annuities offer federal employees and members of the uniformed services a way to take control over their “401k” Federal Savings Plan savings and manage the risk associated with market volatility. By rolling over their “401k” Federal Savings Plan funds into an indexed annuity, individuals can enjoy the safety of principal and the potential for lifetime income. However, it is important to carefully consider the fees and potential limitations of indexed annuities before making a decision. Ultimately, “401k” Federal Savings Plan Rollovers into Indexed Annuities can provide a valuable option for securing your financial future in retirement. We have been helping Federal Employees for years and have moved millions into Indexed annuities, so let us help find the solution to fit your retirement needs. Contact us today.

Federal Retirement Help – Plan To Retire Happy

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Federal Retirement Help: Planning for a Bright Future

As a federal employee, planning for your retirement may seem overwhelming. However, with the right resources and guidance, you can ensure that your golden years are comfortable and financially secure. By taking advantage of tools such as the Federal Pension, Social Security, and the “401k” Federal Savings Plan ( “401k” Federal Savings Plan ), you can create a retirement plan that works for you.

In this article, we will explore the various options available to federal employees for retirement planning and provide practical advice for maximizing your benefits. From understanding the basics of the Federal Pension system to utilizing the “401k” Federal Savings Plan Annuity and Federal Retirement Calculator, we will cover everything you need to know to plan for a bright future.

Understanding the Federal Pension System

The Federal Pension system is a retirement benefit offered to federal employees who have worked for the government for at least five years. This system provides a guaranteed stream of income for life, based on your years of service and highest salary earned. The longer you work for the government, the higher your retirement benefit will be.

One important factor to consider when planning for your federal retirement is the age at which you choose to retire. The earliest you can retire and begin receiving your pension is at the age of 62, with a minimum of five years of service. However, if you wait until the age of 67, you will receive a higher monthly benefit. It is important to weigh the pros and cons of retiring early versus waiting to maximize your pension.

Maximizing Your Benefits with Social Security

In addition to the Federal Pension, federal employees are also eligible for Social Security benefits. Social Security is a government-run program that provides retirement, disability, and survivor benefits to eligible individuals. To qualify for Social Security benefits, you must have worked and paid Social Security taxes for a minimum of 10 years.

One way to maximize your Social Security benefits is to delay your retirement age. The longer you wait to start receiving benefits, the higher your monthly benefit will be. For example, if you wait until the age of 70 to begin receiving benefits, your monthly benefit will be 32% higher than if you had started at the age of 66.

Utilizing the “401k” Federal Savings Plan Annuity

The “401k” Federal Savings Plan ( “401k” Federal Savings Plan ) is a retirement savings plan for federal employees. Similar to a 401(k) plan, the “401k” Federal Savings Plan allows you to save for retirement on a tax-deferred basis. One unique feature of the “401k” Federal Savings Plan is the option to purchase an annuity with a portion of your “401k” Federal Savings Plan balance. An annuity provides a guaranteed stream of income for life, similar to the Federal Pension system.

When considering purchasing an annuity with your “401k” Federal Savings Plan balance, it is important to weigh the pros and cons. One advantage of an annuity is the guaranteed income stream for life. However, once you purchase an annuity, you cannot access your “401k” Federal Savings Plan balance for other expenses. It is important to carefully consider your retirement needs before making a decision. We suggest you speak to one of our Federal Retirement Consultants to find which one would be best for you.

Planning with the Federal Retirement Calculator

The Federal Retirement Calculator is a useful tool for federal employees to plan for retirement. This calculator allows you to estimate your retirement benefits based on your years of service, salary, and retirement age. It also allows you to compare different retirement scenarios, such as retiring early versus waiting to maximize your pension.

When using the Federal Retirement Calculator, it is important to remember that it is only an estimate. Your actual retirement benefits may vary based on a variety of factors, such as changes in the cost of living or changes in government policy. It is important to regularly review your retirement plan and adjust as necessary.

Conclusion

Planning for retirement can be overwhelming, but by utilizing the resources available to federal employees, you can ensure a comfortable and financially secure future. Understanding the Federal Pension system, maximizing your Social Security benefits, utilizing the “401k” Federal Savings Plan Annuity, and planning with the Federal Retirement Calculator are all important steps in creating a retirement plan that works for you. By taking the time to plan now, you can enjoy your golden years without financial stress. And Remember, Don’t Worry, Retire Happy and let us help guide you there. Request your Free review today.

Maximizing Your Retirement Benefits: Federal Retirement Planning Assistance

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Maximizing Your Retirement Benefits: Federal Retirement Planning Assistance

Planning for your retirement can be daunting, but with the help of Federal Retirement Planning Assistance, it doesn’t have to be. As a federal employee, you have access to a variety of retirement benefits, which can be overwhelming to navigate on your own. This article will guide you through the process of maximizing your retirement benefits with the help of Federal Retirement Planning Assistance.

Understanding Your Retirement Benefits

Before you can begin planning for your retirement, it’s important to understand the retirement benefits available to you as a federal employee. The Federal Employees Retirement System (FERS) is the retirement system for most federal employees, which includes three main components: a basic benefit plan, Social Security, and the “401k” Federal Savings Plan ( “401k” Federal Savings Plan ).

The basic benefit plan provides a monthly annuity payment based on your years of service and highest average salary. Social Security provides a base level of retirement income and the “401k” Federal Savings Plan is a defined contribution plan, similar to a 401(k), that allows you to save for retirement with pre-tax dollars.

With the help of Federal Retirement Planning Assistance, you can understand the specifics of each component and how they work together to provide you with retirement income. They can help you calculate your projected retirement income, estimate the cost of living in retirement, and create a retirement income plan that maximizes your benefits.

Maximizing Your Annuity Payments

The basic benefit plan is a key component of your retirement income as a federal employee. It provides a monthly annuity payment based on your years of service and highest average salary. Maximizing your annuity payments requires careful planning and consideration of several factors.

One factor to consider is your retirement date. The longer you work for the federal government, the higher your annuity payments will be. Federal Retirement Planning Assistance can help you weigh the benefits of retiring earlier versus working longer to maximize your retirement income.

Another factor to consider is your survivor annuity option. If you are married, you can choose to provide a survivor annuity for your spouse, which will reduce your monthly annuity payments. Federal Retirement Planning Assistance can help you understand the costs and benefits of this option and make an informed decision.

Optimizing Your Social Security Benefits

Social Security provides a base level of retirement income for all Americans, including federal employees. However, the amount of your Social Security benefit is based on your earnings history and the age at which you begin receiving benefits.

With the help of Federal Retirement Planning Assistance, you can determine the optimal age to begin receiving Social Security benefits based on your individual circumstances. They can also help you understand how your Social Security benefit will be affected if you continue to work in retirement.

Maximizing Your “401k” Federal Savings Plan Savings

The “401k” Federal Savings Plan ( “401k” Federal Savings Plan ) is a defined contribution plan that allows you to save for retirement with pre-tax dollars. Maximizing your “401k” Federal Savings Plan savings requires careful consideration of several factors.

One factor to consider is your contribution rate. Federal Retirement Planning Assistance can help you determine the optimal contribution rate based on your retirement goals and income. They can also help you understand the tax implications of your “401k” Federal Savings Plan contributions.

Another factor to consider is your investment strategy. Federal Retirement Planning Assistance can help you understand the different investment options available in the “401k” Federal Savings Plan and create an investment strategy that aligns with your retirement goals.

In Conclusion

Planning for your federal retirement doesn’t have to be complicated, but it does require careful consideration of several factors. With the help of Federal Retirement Planning Assistance, you can maximize your retirement benefits and create a retirement income plan that meets your individual needs.

Remember to take advantage of the retirement benefits available to you as a federal employee and seek the guidance of Federal Retirement Planning Assistance to ensure that you are making informed decisions about your retirement. For your Free Retirement Consultation, My Federal Retirement Help does Free 90 minute consultations. Contact us today to Schedule your Retirement review.

Almost Every “401k” Federal Savings Plan Fund Ended Last Month (and Year) Down

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The vast majority of offerings in the 401(k)-style “401k” Federal Savings Plan did not have a good month in December—or a good year in 2022 for that matter.

The S Fund, invested in small and mid-sized businesses, had the worst performance for December, losing 6.55%. It was down 26.26% for 2022.

The common stocks of the C Fund fared just slightly better. The fund lost 5.67% last month and 18.13% last year.

The international stocks in the I Fund were 1.85% in the red for December and were down 13.94% for the year 2022, while the fixed income bonds in the F Fund lost 0.65% for the month and 12.83% for the year.

Government securities in the G Fund were the one bright spot, inching up 0.32% for December and 2.98% for the year.

For the year of 2022, L Income lost 2.7%; L 2025, 6.72%; L 2030, 10.32%; L 2035, 11.65%; L 2040, 12.9%; L 2045, 14.03%; L 2050, 15.05%; L 2055, 17.6%; L 2060, 17.61%; and L 2065, 17.62%.

So with that being said, should you look into other investments where you don’t have to take ANY losses?  We call it Zero is our Hero.  Contact one of our Financial Retirement Consultants to learn how we help you plan for a better retirement.

No Time Like the Present: Retirement and Estate Planning in Your 20s and 30s

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When you’re young, saving for retirement may be the last thing on your mind. Yet, the financial choices you make in your 20s and 30s will dictate how well-off you are decades from now, and delaying retirement and estate planning until you’re older can be a decision you live to regret. Here’s how to start preparing so you’re ready for your golden years.

Money Management: Budgeting and Handling Debt

Living within your means is a habit best formed early in life, and it becomes even more critical when you’re earning a regular paycheck that must cover expenditures like rent, auto loans, insurance, and utility bills. To ensure you’ll meet your obligations, start by tracking your income and expenses; if the latter exceeds the former, you’ll need to either cut unnecessary spending or find a way to generate more earnings. Use your tracking to create a monthly budget, and then stick to it to avoid overspending.

If you’ve used credit wisely up to now, and you don’t carry any revolving debt, keep it that way. If not, add a line in your budget for paying down your cards so you don’t waste money on interest charges. Pay as much as you can above the minimum requirements, and remit payments on time to avoid fees and build your credit history.

Money Maximization: Saving and Investing

Once you have built a budget and are following it, you may be tempted to splurge with any extra cash. Although you shouldn’t live a life of hermetic deprivation, focusing on saving rather than spending will always have a better outcome long term. That’s because interest compounds, or builds on itself, so free money is added to what you’ve saved.

Speaking of free money, if your job offers a 401(k) plan, join it. It will make it effortless to build your savings, and if your employer provides matching contributions, then company money will be added to your plan every payday.

Buying a home is also a smart investment, as house values generally increase over time. Down the road, you can use your home’s equity as a source of liquidity when needed. When you’re ready to purchase, use a helpful online house appraisal to assess the asking price so you avoid overpaying and benefit fully from any appreciation.

Money Protection: Insurance and Estate Planning

Once you’ve committed to saving and investing for retirement, take steps to ensure you’ll hold onto that money until you or your loved ones need it. Always carry health insurance coverage, as medical debt can quickly deplete your savings. Having a life or disability insurance policy will also help preserve what you’ve accumulated if you die or become unable to work.

Although estate planning may sound silly when you’re beginning to save for the future, if you die without a will, your money may not go where you wish. By creating a complete estate plan when you’re young and then updating it when you marry, buy a home, have children or go through other life changes, you’ll rest assured that your assets won’t end up in the wrong hands.

No one ever says they wish they’d waited longer to be smart with their finances. By focusing on managing, maximizing, and protecting your money in your 20s and 30s, which may include taking advantage of your home equity or utilizing your 401(k) plan, you’ll set yourself and your loved ones up for a stronger financial future.

My Federal Retirement Help can assist you as you begin planning for your upcoming retirement. This way, you won’t have to spend your golden years worrying about your finances. Contact us today by calling 254-870-5959 Ext. 700 or texting 254-301-6571.

If You Make $100,000 in Average Annual Income, Here’s What You’ll Get From Social Security at 67

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For anyone born after 1960, the Social Security Administration (SSA) determines that your normal retirement age, which is when you would be entitled to your full benefit, is 67.

But deciding whether or not you should retire at that age can be difficult. You can start receiving Social Security benefits as soon as you turn 62, but claiming early can significantly reduce your amount.

You can also wait until 70 to start taking Social Security (increasing your benefit to the highest amount possible), but perhaps you don’t want to wait that long. It depends on where you are in life from a financial perspective and how your health is doing.

Given all of these factors, it’s a good idea to figure out how much you might get when you start to claim benefits. Despite its complexity, you can break down the Social Security formula into basic parts to calculate your amount. Let’s see how much you would make if you earned about $100,000 annually (adjusted) over your career and retired at 67.

Breaking down the formula

To begin calculating your benefits, the SSA first calculates your average indexed monthly earnings (AIME), which looks at the 35 years of your work history in which you made the most money.

It looks at your nominal earnings over these 35 years and then indexes them (or adjusts them) to determine what the amounts would have been if you were making them in the present. So, essentially, the SSA would take your nominal earnings, from, say, 1982 and adjust them for wage inflation over the years to reflect what those earnings would be in 2022.

An example on the SSA website shows that nominal earnings of $13,587 in 1982 would have been equivalent to about $52,000 in 2022. But the SSA also has a wage base limit for what a retiree can get credit for. That number is $147,000 in 2022.

To finish getting the AIME, you add up your highest 35 years of annual earnings, which are now indexed to account for inflation. Then you divide by 35 to get the annual amount over that period and then divide by 12 to get the monthly amount.

Once you have your AIME, the next thing you need to do is calculate your primary insurance amount (PIA), which is your actual monthly benefit from Social Security for those receiving full benefits at the normal retirement age.

This is also not a simple calculation, but it can be done easily enough using these three steps and adding the amounts from each step. Here are the numbers for someone who turned 62 in 2022:

  • 90% of the first $1,024 of your AIME.
  • 32% of any amount between $1,024 and $6,172.
  • 15% of the leftover amount above $6,172.

What is your PIA on an annual income of $100,000?

If your highest 35 years of indexed earnings averaged out to $100,000, your AIME would be roughly $8,333.

  • 90% of $1,024 = $921.6
  • 32% of $5,148 = $1,647.36
  • 15% of $2,161 ($8,333-$6,172) = $324.15

If you add all three of these numbers together, you would arrive at a PIA of $2,893.11, which equates to about $34,717.32 of Social Security benefits per year at full retirement age. That’s not too shabby considering the maximum benefit is $4,194 per month, and that assumes you delay claiming until you are 70.

The $18,984 Social Security bonus most retirees completely overlook
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $18,984 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after.

What You Need to Know About Social Security and Federal Retirement

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What is the average monthly Social Security retirement check in 2022?

$1,657, according to this Social Security fact sheet.

Sandy and her husband, Tom, were both born in 1956. Sandy began receiving a reduced Social Security benefit of $586 a month at 62. (This is 73.3 percent of the full benefit amount of $800 she would have received at her full retirement age of 66 years and 4 months). Tom is retiring this year and will receive $2,800 a month at his full retirement age—also 66 and 4 months. How much will Sandy receive after Tom retires?

She will get $1,115. This is a bit complicated, so don’t feel bad if you couldn’t figure out the answer. At full retirement age, a spouse is eligible for 50% of the full Social Security retirement benefit of their spouse or their own benefit—whichever is higher. But the fact that Sandy began collecting her own benefit at 62 affects the calculation of her spousal benefit when her husband retires.

Social Security will use Sandy’s full benefit amount that would have been payable at her full retirement age, based on her own work record (not the amount she has been receiving since she was 62). That amount will be subtracted from 50%of her husband’s amount. Sandy’s full benefit would be $871 (it has grown from the initial amount of $800 by cost-of-living adjustments since 2018), so Social Security would subtract $871 from 50% of her husband’s full benefit amount of $2,800, or $1,400. The resulting sum of $529 would be added to her current benefit of $586, and her new benefit amount would be $1,115 per month. If Sandy had waited until her full retirement age to apply for Social Security, then she would have received the higher of her own full benefit amount or 50% of Tom’s, which would have been $1,400 a month.

How much can you earn in 2022 if you are under your full retirement age without reducing your Social Security benefit?

$19,560. If you’re under your full retirement age for the entire year, Social Security will deduct $1 from your benefit for every $2 you earn above the annual limit. Here’s more information about how work affects your Social Security benefit.

What are the conditions under which you can receive a Social Security benefit based on your former spouse’s work record?

If you were married for 10 years or more, are not currently remarried, and are not receiving a pension from work not covered by Social Security. A former spouse who meets the requirements to receive a Social Security benefit is treated basically the same as a current spouse. This entitlement does not affect the former spouse’s own Social Security benefit or his or her new family’s. If the spouse is receiving a Civil Service Retirement System retirement benefit, then he or she will be affected by the dreaded Government Pension Offset, which will reduce the spousal benefit by two-thirds of the CSRS retirement. This will eliminate the benefit entirely in many cases. Read more in this Social Security publication: What Every Woman Should Know.

Among beneficiaries 65 and older, what percentage rely on Social Security for more than 90 percent of their income?

For men the answer is 12%, and for women it’s 15%. It’s also interesting to note that 37% of men and 42% of  women rely on Social Security for 50% or more of their income.

What is the full Social Security retirement age?

The earliest you can start receiving Social Security retirement benefits is 62, but the benefit is permanently reduced for applying early. Your full retirement age is between 65 and 67, depending on your year of birth.

What can you do to increase the amount of your Social Security check?

Here are some of your options:

  • Delay receiving payment until you turn 70
  • Claim a benefit on your spouse’s work record
  • Continue working past 62

Social Security was never meant to be your only source of retirement income. Knowing this, how should you plan your retirement?

Here are some steps you could take:

  • Learn to live on less now
  • Make saving mandatory and automatic
  • Plan for being single, even if you’re not
  • Be realistic about when you can afford to retire

Always remember that the modern federal retirement has three key elements: a government retirement benefit, Social Security and personal savings, especially through the “401k” Federal Savings Plan . Learning how to balance and maximize these elements is the key to a comfortable retirement.

“401k” Federal Savings Plan 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 “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.

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.

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