Browsing: FERS

Q. My late husband was a FERS retiree when he passed in 2017. I am also a federal employee, but am under CSRS. I’m planning to retire soon, and am wondering if I have our TSP funds in the correct L Funds. I was told it should correspond to your retirement year, but just read that it should be based on my life expectancy. Which is accurate? Also, is it correct that if I withdraw from my husband’s TSP it would not be subject to the 10 percent penalty? A. There is no “accurate” or correct way to choose an…

Q. My husband is a retired CSRS annuitant and I’m a retired FERS annuitant. I turn 66 this year, which is my full retirement age for Social Security. I haven’t yet begun to receive SS payments or withdrawn any funds from my TSP, but would like your opinion as to leaving the TSP funds until I need to make Minimum Required Distributions. My feeling is that if I predecease him, he will not receive any of my SS, but will inherit my TSP. Our accountant thinks I should start drawing down the TSP and invest those funds, since we don’t…

Q. I will be retiring in approximately three years. I want to have some TSP funds, say 3-5 years worth of expenses (less FERS pension and Annuity Supplement) in a safe investment. Given today’s interest and bond climates, is it better to use the G or F fund (or a split between the two) for that allocation? A. The G Fund is the only TSP fund that is guaranteed against loss of principal.

Q. I retired under FERS and receive the supplement. Will the sale of a second home be considered wages, thus reducing my supplement or completely eliminating it?   A. Proceeds from the sale of a home are not considered wages for any purpose that I am aware of.

Q. I have 43 years of service: 22 years under CSRS, which includes 4 years military active duty that I “ bought back,” as well as 21 years under FERS. There was no break in service. Will my 4 years of active duty, in which I paid Social Security, give me essentially 25 years of “ substantial earnings” towards the WEP provision? A. It depends upon how much you earned year. The schedule of annual earnings required to qualify as “substantial” is available at https://www.ssa.gov/pubs/EN-05-10045.pdf. You can compare the earnings for year as listed in your Social Security benefit statement…

Q. I hope to retire in 2020 under the FERS retirement system. My spouse is a school teacher, does not pay into Social Security, and is covered by the Ohio State Teachers Retirement System (STRS). Will either of us lose a substantial amount of survivor benefits when one of us passes due to the WEP or GPO? A. The windfall elimination provision does not apply to survivor’s benefits, but the government pension offset may reduce or eliminate your wife’s survivor benefit, if she survives you.

Q. I currently have a TSP account as an FERS employee, with 100 percent is in the L2040 Fund since I started almost 3 years ago. I have a long way until retirement, as I am 37 years old. Someone said I should do the “CSI,”  which would be C Fund=40 percent; S Fund=40 percent; I Fund=20 percent, but I’m not sure what that even means.  I would like to look forward to a comfortable retirement so suggestions are welcome and much appreciated! A. You should ask the “someone” whether they will take responsibility for the outcomes their advice will produce.…

Q. If I retire from civil service (under FERS) and I return to work as a civil servant at a later date, I know that my annuity will be subtracted from my pay. However, will I be able to contribute to TSP again? If so, can I contribute to my original TSP account or would I have to start over with another account? A. You will allowed to contribute to the TSP for during any period of eligible employment under TSP’s rules: https://www.tsp.gov/PlanParticipation/EligibilityAndContributions/index.html. A new TSP account will be opened for you when your are eligibly employed.

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