Browsing: Federal Employees Retirement System

Benefits after termination

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Q: Does a federal employee who is fired get to retain Federal Employees Retirement System defined benefit plan annuity and government contributions to his Thrift Savings Plan? A: You are always fully vested in your contributions and the government’s matching contributions. The automatic 1 percent agency contribution under FERS vests after you have completed three years of federal civilian service (two years for congressional and certain other noncareer positions).

Use TSP for military buyback?

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Q: I have five years of military service that I am considering applying to my federal retirement years. I have waited way to long to do this and am hoping I could use my Thrift Savings Plan monies to pay for the military service, similar to rolling over an individual retirement account. Is this possible? A: A rollover to the Federal Employees Retirement System or the Civil Service Retirement System for service is not allowed.

Payroll tax holiday

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Q: I’m a Federal Employees Retirement System employee and I am confused about what advantages there are to the payroll tax deduction reducing the contribution into Social Security from 6.2 percent to 4.2 percent in 2011 as part of a payroll tax holiday. Won’t I still need to pay 6.2 percent at the end of the year when I’m filing my taxes? And will it not also affect my Social Security?    A: No, you won’t have to pay the difference at the end of the year. Right now, Social Security benefits are not indexed to the rate at which you…

Competing annuities, benefits

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Q: Will I get full Social Security and a “full” Federal Employees Retirement System annuity when I retire at age 66? And when I invest my Thrift Savings Plan money, will that affect how much I receive from Social Security? A: I can’t say whether you’ll get a “full” FERS annuity, but none of these benefits, on their own, will affect the others.