Q. There was a proposal earlier this year to amend the Federal Employees Retirement System so that retiring employees could contribute their annual leave balance to the Thrift Savings Plan. Has anything happened on it? A. It appears to be dead.
Browsing: FERS
Q: I retired with both CSRS and FERS components during my federal tenure. How is my COLA calculated? Is it calculated based on both respectively or is it based solely on the latter FERS component? A: Each component will have its own COLA computed using the appropriate formula.
What is the one thing federal employees need most when it comes to retirement planning? A fully inflation-indexed immediate life annuity. The one missing piece of the retirement puzzle for federal workers is the option to use their Thrift Savings Plan balances to create a stream of income that is guaranteed to last a lifetime and to maintain its purchasing power over the years. Yes, you do have the option to purchase a TSP annuity, but it has what may, for many, be a fatal flaw: It doesn’t guarantee that the payments will keep pace with inflation. Planning for retirees…
Q. I am under the Federal Employees Retirement System. I am 49 with 21 years of service. I am being told there will be a Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay offered this fall and next spring. I will turn 50 during the VERA/VSIP timeline. If I take the VERA, will my government annuity be reduced by 5 percent per year? Will I be able to receive both my government annuity and my Thrift Savings Plan annuity as soon as I leave service? Is there a penalty in taking the TSP annuity now? Will I qualify to get the Social…
Q. I am a Federal Employees Retirement System employee, and I am confused regarding which of my three retirement components are subject to federal and state taxes. Basic annuity? Thrift Savings Plan annuity? Social Security supplement? A. Distributions from your TSP account are considered taxable income.
Q. I plan to retire at my minimum retirement age of 56 with 31 years of service. I plan to get my Federal Employees Retirement System pension, as well as my Thrift Savings Plan annuity immediately. I know my FERS annuity is not subject to the minimum earnings test. Is my TSP annuity subject to that? Is the TSP annuity considered income? A. Annuity income from your TSP account is not considered earned income.
Q. I stopped work in March 2009. I applied for OWCP. The Office of Workers’ Compensation Programs had paid for two back surgeries in 1989 and 1991 and continues to pay for ongoing treatment. I was denied OWCP, so I applied for disability retirement, which was approved. I am still on interim retirement pay. I withdraw some funds from my Thrift Savings Plan to cover me for the time period between OWCP and retirement. I now need to withdraw more for medical reasons. Since I am medically disabled from my federal position, as well as medically retired, what is the…
Q. I plan to take an early out (Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay) effective Aug. 31, 2011. I am under the Federal Employees Retirement System plan. At the time of my retirement, I will be 54 years old. I have read that if you retire before age 55, your withdrawal/rollover is subject to a 10 percent penalty. I have also read that any action can be postponed, but postponed to what age? 55 or 59.5? Does this mean I cannot withdraw and/or roll over to an Individual Retirement Account until I reach age 59.5? I don’t understand why I would have…
Q: I stopped work in March of 2009. I applied for OWCP. OWCP had paid for two back surgeries in 1989 and 1991 as well as continues to pay for ongoing treatment. I was denied OWCP so I applied for disability retirement which was approved. I am still on interim retirement pay. I withdraw some funds from my TSP to cover me for the time period between OWCP and retirement. I now need to withdraw more for medical reasons. Since I am medically disabled from my federal position as well as medically retired, what is the best way to withdraw…
Q: I plan to retire in 2015 under FERS at age 56 with 31 years of service. Can I withdraw all my money I have in TSP ($500,000) at once, or is there a limit on how much can be withdrawn? I believe because I have the correct MRA, there would not be a penalty for withdrawal. Is this correct? A: You may withdraw all of your money at once after you separate from service. Your MRA has nothing to do with it.