Q. Is Federal Employees’ Group Life Insurance, survivor benefit and Thrift Savings Plan matching based on GS base pay or firefighter base pay? A. Mike: TSP matching is based on your pay. Reg: Your annuity will be based on your highest three consecutive years of basic pay. To determine what is included in the term “basic pay” for a firefighter, you’ll have to check with your personnel and payroll offices.
Browsing: FEGLI
Q. I am 46 with 22 years of service, and have been told that I will soon receive a letter of directed reassignment to a job in my same grade far outside my commuting area. When the letter arrives, if I should decline to move to the new position, what are my options for drawing retirement? How about insurance? Severance pay? What about my 401(k) in the Thrift Savings Plan? My performance ratings are not an issue. A. Mike: Your circumstances will not affect the usual rules that apply to your TSP account. As long as you remain employed, you will be…
Q. I will be retiring this year. Do you think the Thrift Savings Plan annuity has a fair return? The life insurance has me puzzled. It is very expensive. Is there a better way to get this much coverage? A. I wouldn’t lock in a TSP annuity at today’s historically low rates of return. You should shop the individual life insurance market for guaranteed level term insurance and compare the rates with Federal Employees Group Life Insurance.
Q: I am a 51-year-old federal employee with 32 years of service under CSRS. I have all the Federal Employees Group Life Insurance benefits: basic life; Option A standard; Option B additional life insurance (5x); Option C family. My children are grown, ages 31, 29, 21 and 19. The 19-year-old is in college and still living at home. I’m trying to figure out what would be the best choices for me to adjust my FEGLI coverage to. My husband and I are trying to save for our retirement. It’s time to make a change as I believe I’m carry too…
Q: I am 57 years old and plan to retire in two years. I have basic Federal Employees Group Life Insurance plus two times optional coverage. My total annual premium is nearly $1,900 for roughly $400,000 of insurance. Equivalent coverage in the open market is considerably cheaper. Is there any advantage to retaining my FEGLI coverage as I approach retirement? A: The major benefit, assuming that you are insurable at more attractive rates on the retail market, is that if you retire with basic FEGLI coverage, you can, once you reach age 65, retain 25 percent of that coverage, at…