Q. If I resign at age 51 with 25 years of service, will I lose the government matching funds that went into my Thrift Savings Plan? Will I be able to receive a deferred annuity at age 62? What would that be — 25 percent of high-3? A. Mike: Agency matching contributions are not subject to a vesting requirement and are not forfeited at termination. Reg: Because you have at least 20 years of service, you could apply for a deferred annuity at age 60. Since each year of service would be worth 1 percent, with 25 years, your annuity…
Browsing: vesting
Q. I have been working for the federal government for just over two years. I am planning on moving in the next few months. I have applied to federal jobs, as well as private-sector jobs and have, so far, heard back from the private-sector jobs. I read that the Thrift Savings Plan is vested at three years and that employees are entitled to retirement benefits after five years. If I were to leave the federal system at this point, would I be able to return to the system in the future and “restart,” as it were, at my two-year mark?…
Q. I have resigned from my position with the federal government in order to attend graduate school effective in May and will have been employed for a year and 10 months. I realize I need to be employed for three years for TSP vesting requirements, and I will likely forfeit my automatic 1 percent agency contribution in May, but after grad school, I intend to return to work for the federal government. How does this work with vesting in this situation? Would I be returned the 1 percent agency contribution (plus interest?) upon working an additional year and two months…
Q. I am a FERS employee who did a one-year-and-one-day residency (366 days) at the Veterans Affairs Department. During this residency, I was a full-time (40-hour-a-week) employee receiving benefits (health care, annual leave, sick leave, etc.). However, I did not contribute to FERS or the Thrift Savings Plan during this year and my “term” of employment was allotted for only one year. After the residency, I was hired as a full-time employee at VA contributing to the FERS pension, and I still continue to work in the VA system. 1. Does this one year of residency count as a year of…
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).
Q: I am a Senior Executive Service employee with two years of active federal civilian service and 34 years of prior active military service. I have been discussing a possible opportunity wherein I would leave the federal government for a year or so and work as a contractor. I would then hope to compete for another SES position with a different agency and return to active federal civilian service. Because I have only two years of active federal civilian service, will I lose the agency matching contributions I have received in my Thrift Savings Plan account to date if I…