How to Calculate Your FERS Pension in 2024

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[@b.coxemba6799]

I retired at 51 law enforcement with 27 creditable years of service. I never touch my investments. I'm waiting until age 62. That 41% of high three (1.7×20+7) living within your means during your career and not check to check help a lot. I have a good emergency fund and no penalties on withdrawing from my TSP. Its only fair to mention I was a internal financial consultant for Department of Justice.

[@dieuworld6670]

So, if you don’t mind me asking 😊why would you wait instead of enjoying your your money while you’re able?

[@b.coxemba6799]

@@dieuworld6670 I don't mind. I'm not expecting a super long life. My family life expectancy isn't long. My grandma generation die before 70. My mother generation most pass away with a few living now at 75. But my Asian spouse family members for the most part lived passed 85. So my plan is to withdraw down for twenty five years. I'll be 87 and my wife will be 97 when the well run dry. My goal is to cover my wife life expectancy in case I die, but try to enjoy a little if possible. This was the balance / compromise I settle for. So at 62 what ever we have will be divided by 25 (years) then by 12 (months) and place in the G. That's my plan. To care for my wife as long as possible.

[@ohplezz]

@@dieuworld6670so it continues to grow.

[@itguru2037]

Basic pay includes locality pay. If you retire to a lower locality area, your retirement benefit won’t change since your high-three average was based on your salary rates while employed. Once you are retired, your CSRS or FERS retirement will receive cost-of-living adjustments. However, these adjustments are not linked to locality, and they are computed differently for CSRS and FERS.

[@kckuc310]

Great video as always

[@PlanYourFederalBenefits]

Appreciate that

[@josephkelleher8820]

Glad I have a CSRS pension. Also invested in the TSP.

[@b.coxemba6799]

No worries social security help make up ground and fers get matching contributions. ❤

[@violabrown1459]

But no social security 😮.

[@reyrobles4151]

CSRS ended in 1987 and wages then were so much lower than today. So, the 80% of your salary CSRS pension that you’ve been receiving is way lower than what someone retiring today under the FERS retirement as they receive from both pension and Social Security

[@voldymore69]

how to calculate pension as federal technicians and check your total federal time thinking of mra with 10 years of service

[@kyleholway336]

I am a FERS special provisions employee and a member of the Marine Corps reserve. If I mobilize on active duty orders and am in an LWOP-Mil status for a portion of my final 3 years of FERS employment, how would that affect the high 3 calculation?

[@dianepaulus2793]

Thanks for the info. If a Federal employee under FERS worked full time the first 6 years as full time and then worked part time for the remaining 22 years (anywhere from 40 or 60 or 50 hours per pay period) - how is that calculated for retirement annuity? I am 75 and will retire August 2024 and can't find anyone to help me calculate. Thank you.

[@gblady37]

Your Human Resources Office can help you.

[@Just_Stevo]

Did the math while watching this. Retiring at 57 with 25 years of service costs me $506 dollars a month. Seems cheap. Gotta lean heavy into the TSP!

[@andyroo9381]

What do you mean by it "costs you"? Are you saying there will be $506 in taxes and deductions taken out of your pension?

[@Just_Stevo]

If I were to retire at my current numbers an MRA+10 would reduce my pension by $506 a month.@@andyroo9381

[@bigblue3568]

????

[@seankmath2214]

MRA +10?

[@notmeee7302]

5% penalty for every year under 65 unless you have 30 year service.

[@TRSWOODWORKING]

How about VERA offered with 25 years in federal service? I'm banking on that and will be 51

[@karinhall2793]

If you retire under the VERA as a traditional employee but you are under 57 (age 55), are you still eligible for the supplement once you turn 57. Or do you have to be 57 in order to be eligible for the supplement. Please provide clarity on this.

[@doogie64]

Sub’d. Also shot you an email about ret planning.

[@douglasbrown7407]

The average High 3 is used as a basis to calculate your pension but is the High 3 based on your base pay or the actual amount of money you earned? I am an employee who is required to work mandatory overtime every year so would my overtime be included when calculating my average High 3?

[@DB-vc3xn]

It does not include OT

[@Letizia4813]

For calculating high 3, if your salary is say $100k and you separate on June 30 is that final year calculated as $100k or $50k (because you only actually earned 6 months of that final year)?

[@PlanYourFederalBenefits]

Great question. Your high-3 is actually calculated using your top-earning 36 months of your career. So, the time of year you retire does not affect the calculation.

[@leeb.7188]

That’s horrible! A person making $100,000 per year can drop to living on $30,000? Where? It seems that in order to retire, Federal employees will have to move to a low-cost foreign country. Sad.

[@b.coxemba6799]

I retired at 51 law enforcement with 27 creditable years of service. I never touch my investments. I'm waiting until age 62. That 41% of high three (1.7×20+7) living within your means during your career and not check to check help a lot.

[@tgtongue]

It’s not horrible. It’s a 3 leg retirement plan for most. Pension + SSA + TSP. It should allow you to be more risk adverse in your TSP which creates better returns closer to retirement.

[@b.coxemba6799]

@@tgtongue I agree 💯 Most people don't get any employer pension plan (only S.S) than add cost of living adjustment, carry their healthcare and life insurance policy, no state taxes in most places, standard deduction will cover most federal taxes and have the option of Medicare Part A and B. Social Security recipients receive about 40% retirement income. Your TSP in theory only need to cover about 15% of your salary.

[@bigblue3568]

Really it's horrible that someone gets what 98% of other retirees don't get.... a PENSION!

[@leeb.7188]

@@tgtongue : I dunno, there has to be something wrong with it because I read that federal employees on the CSRP (?) where they get a fixed amount every month often retire as soon as they are eligible, but FERS employees (boomers) are not retiring because they’re too insecure about what they’ll be getting. My understanding is that SS is a fixed amount, and the 1% annuity is a fixed amount, so the problem must be with the TSP. Is that also a fixed amount, or does it vary from month-to-month depending on the ups and downs of the stock market? Or is the unwillingness for boomers to retire because the overall FERS package is just too low for today’s prices?

[@JasperSchneider]

If you have 5+ years of federal service but no longer are employed as a federal employee, do you know how long you have to go back to work at 62 to 'retire' a federal employee for the health insurance advantage?

[@corrycorry6734]

5 consecutive years. The clock resets when you have a break in service. I believe it triggers the pay period you voluntarily you don’t have a premium payment. Good luck!

[@JasperSchneider]

@@corrycorry6734 Thank you, I have heard that it was for 5 consecutive years that it was available to you, even with a break in service. So trying to confirm. Thank you

[@notmeee7302]

And you can not do a deferred retirement or you lose all benefits + no special supplement. You must also do the spousal benefit so they will get the health insurance when you pass

[@hmaazouzi2696]

How much does a federal employee should contribute to FERS?

[@PlanYourFederalBenefits]

If you are talking about the TSP, here is a great resource on that: kzbin.info/www/bejne/m5LOdnyqa91lfJo&ab_channel=HawsFederalAdvisors

[@thatguy9051]

Please tell me why the VA does not educate their employees as well as you do?? It's baffleing!! I work with another Nurse who thought she could retire and found out she has 10 more years....why is nobody educating employees?

[@nicolemiller8329]

Why don’t employees read, pay attention to what they’re signing up for, ask questions, etc.? The information is there, but feds don’t take advantage. That said, some info now comes in the form of emails, blasts messages, etc., since so many WFH and are on alternative work schedules.

[@bigblue3568]

The question is why don't new hires or current employees take the time to read all the information available. Nothing is hidden. Their adults ...

[@jessemarkle5413]

The BOP is the same way. They never taught us anything. You learn from gossip and each other. They only had 2 retirement seminars in my well over 20 years and they were too packed and too many people talking to obtain any information. They need a dept or a 1 on 1 rep to come in ....

[@notmeee7302]

Because the feds didn't want you to benefit. Absolutely no education on any of it

[@Ricardo_Veteran]

Does include locality pay or just base pay?

[@PlanYourFederalBenefits]

Great question! Your high-3 is based on your base pay and does not take into account locality pay.

[@itguru2037]

@@PlanYourFederalBenefitsI think it includes locality pay as well. Please check

[@nomadnomad3109]

If i do 15 years but change jobs and im 45 years old can i still collect a pension when i turn 60?

[@mcz68l]

If you mean "change jobs" is leaving federal service you can apply for a pension at 62 and it would equate to 15 percent of your high 3 if you have 5 years of military time that you buy back before you leave federal service then you can apply at 60 (increasing your pension to 20 percent of your high 3)

[@notmeee7302]

MRA+10 BUT 5% penalty for every year under 65. Age 60 with 20 years no penalty but only eligible for deferred retirement and no benefits. (except your TSP & SSA). VERA is usually age + years of service usually 25

[@user-tz7ug6fl5z]

kzbin.info/www/bejne/Y3yyfn5olM2qg5Y On this link from the Army civilian FERS preview on 1:37:37, have me confused the "total unused sick leave" which was added to the total time of service. Will you please explain if this calculation differs from yours.

[@happilife2222]

Actually, the video shows that the total unused sick leave is the sum of the unused sick leave and total time of service conversion YY/MM/DD. Then, the days were supposedly dropped after they were added.

[@bryonfaust5243]

Where, exactly does one find their salary?? What is listed on paystub changes during the year. The number on paystub differs from Myepp website. COLA, etc. Where exactly does the salary number come from?

[@notmeee7302]

Form 50