Why Federal Employees Miscalculate Their FERS Pension

Are you comfortable with the knowledge you have about your FERS pension calculations?
Because over 20% of retirement applications contain errors, federal employees need to find out how they can miss the most common mistakes and how to avoid them. Join Christian Sakamoto, CFPⓇ, in today's episode, where he unpacks the high-three calculation, emphasizing the importance of understanding basic pay components, service computation dates, and credible service. Christian addresses common mistakes and explores key components:
High-Three Calculation: Understanding basic pay components, service computation dates, and credible service nuances.
Pension Multiplier Variations: Exploring how retirement age and special provisions impact the pension multiplier.
Deductions and Surprises: Navigating deductions such as state income taxes, survivor benefits, and the first supplement
If you are looking to retire confidently but still have some unsolved issues, schedule a call with a financial advisor on the following link: zurl.co/EnxV
Happy Planning!

[@mryoung8088]

SCD also shows on your LES

[@wilsq30]

Yeah, but the RSCD doesn't and that's what counts for retirement.

[@stellah1643]

Great info, thanks!

[@planyourfederalretirement]

Happy to provide content like this. In fact, it is kind of what gets us out of bed in the morning! We love talking to Feds and helping them navigate their complex benefits.

[@pattyk8594]

Great video thank you!

[@planyourfederalretirement]

Our pleasure! We work with a lot of Federal employees who have been searching for information just like this online and are unsure what is accurate. Happy to provide information like this from licensed financial advisors who specialize in understanding federal benefits.

[@ZOANOM]

Not all feds include shift rates in their high 3 calculation. Be sure to note that only those premium pays that have retirement withheld are included. I've worked 40 years of rotating shifts for the FAA, but none of my eve pay or weekend pay is included.

[@kristopherkrahl1597]

You're not the only one. There are several agencies that don't include any premium pays in the employees retirement calculation...i.e. night differtial, Sunday pay, Holiday pay, etc...

[@robjus1601]

How does one dispute a pension determination by OPM?

[@wallys7016]

Two questions: how far out and how often can you request a certified summary? If I don’t elect survivor benefit can I still get FEHB for my spouse? If no, why not what does FEHB have to do with pension?

[@Gone_Flying]

just FYI- You mentioned downloading SF50 to a personal computer instead of work computers. Thats not possible if one uses eOPF as all IP addresses are blocked except for those on Government networks. The only option is to download to the Government computer (remember to remove eOPF password) and email to your personal email.

[@SpookyEng1]

I used the EOPF tool to covert all of my SF50s to 1 pdf, printed and sent to myself.

[@wilsq30]

You can also download from a gov computer and email to yourself

[@Gone_Flying]

@@wilsq30 Yes...I literally said that in my comment!

[@michellecummings5598]

I attach it to my usajobs account. then I can get it and download at home

[@66pacesetter]

So I thought taxes were calculated with the full Gross amount. So they are calculated after survivor benefits?

[@HerbWalker]

I am 68 yrs old now and was with TSA from 2002 till 2014 when I was injured an placed on OWCP in Texas, How can I figure for my retirement then. My HR at TSA says Im no longer on the books. :) Thanks

[@planyourfederalretirement]

We don't specialize in Disability-related retirements, so I would recommend finding someone who does. There are unique rules related to disability retirement that you will want to ensure are double-checked.

[@StayUplifted]

What causes the difference between SCD and RSCD? I would imagine one would want to maximize RSCD. How do you maximize it? just contributing to FERS?

[@terryneal5569]

Do I understand night differential and Sunday premium should be in the calculation?

[@ZOANOM]

Check your LES to see if your retirement is withheld from just your base pay or if it is withheld from the amount that includes Sunday pay.

[@MyJeffrey1970]

NO

[@ZOANOM]

@@MyJeffrey1970How do you know? It depends on which Agency someone works for and whether retirement funds are withheld from their shift work or other premium pay.

[@etsout]

Does active duty time from the national guard count towards federal retirement or state retirement?

[@terryneal5569]

I think if you call HR they will send you a form to send into your branches finance to buy the service back. I am almost positive if you were activated the time can count but you have to buy it back, it is cheap and worth it usually.

[@etsout]

@@terryneal5569 Thank you.

[@planyourfederalretirement]

Active duty time with the National Guard can be bought back and counted towards the Federal Employee Retirement System (FERS).

[@etsout]

@@planyourfederalretirement Thank you!

[@user-ds1xu9bt1g]

I have 6 years of active civilian service in the Federal System and I'm going to buy three years of my military serive... which gives me 9 years of Federal Service at the age of 62. Will I be able to maintain Healthcare Service for my wife and I?

[@Roadrunnerhenry]

As long as you have it for 5 years prior to retirement you can keep it, but check with your HR department

[@sS-fs8pn]

If I am 61 with 30+ years, does my sick leave add strictly to time in grade and not impact the needed age of 62 to get the 1.1%? In other words, regardless of sick leave balance I must reach age 62 then retire to get the 10% bump?

[@stephendove2850]

Yes

[@planyourfederalretirement]

Yes, in order to get the 1.1% multiplier, you MUST retire at 62 or later with 20 years of service. Sick leave will add to your creditable service, but you have to retire at 62 or later to get the 1.1% multiplier.

[@jaime3595]

Is there a maximum percentage from FERS, example, 20 years service plus 22 years military (buyback), is 42 years of credible service used for the calculation?

[@paulmartinez471]

Yes

[@paulmartinez471]

Yes your 42 years will count. I knew of a guy who retired with 50 years of service.

[@sofiodotcom]

It occurred to me that the months where we received 3 checks instead of 2 would always be the highest earning months. If the months do not have to be consecutive, would they include all of the 3 check months in the High Average? I think not, but curious what you make of this line of reasoning

[@planyourfederalretirement]

Thank you for the clarification. Your high 3 is based on an average of your annual basic pay over any period of 3 consecutive years of creditable service. The month with three paychecks doesn't influence your annual basic pay.

[@etsout]

What is survivor benefits?

[@Xinerius]

Deduction so that if you die, your spouse would keep getting a 25% or 50%of the pension depends on deduct 5% or 10%. You can opt-out if your spouse agree to sign for it, or if you are not married.

[@stephendibari5010]

About 10 years ago I had about 100 hours of LWOP. Sounds like that gets reduced from my credible years of service. Do I have to contact someone at ABC to determine how many hours of LWOP I actually took?

[@planyourfederalretirement]

LWOP fewer than 6 months in a year will have the full amount credited towards FERS.

[@BoomerLeo-ij7iu]

Department of Defense calculated my service at 20 years, 19days, plus another 24 days of sick leave for a total of 20yrs, 1mo, 13 days. OPM mailed my retirement letter and said I only had 19 years 10 months. Since I served from 12 Jan 2004 to 31 Jan 2024, I thought this seemed like a pretty simple calculation. I realize the two weeks at the end didn't count for anything, but January to January sure seems like a pretty easy, 20 year calculation. That difference of 1% versus 1.1% is huge when I'm gone and my wife depends on it. Is there anything special I need to do on appeal? Should I hire an attorney?

[@planyourfederalretirement]

You will want to review your SF 50s to make sure that during your career, you were paying into FERS for that entire time. If yes, then you will want to look at submitting an appeal to recalculate your benefits with OPM.

[@BoomerLeo-ij7iu]

All straight time from start to finish and backed up with paperwork from DoD showing it. I filed an appeal so hopefully that will be the end of it. It has got multiple personnel from our interagency advisory team (FBI, DoD and others) running scared.

[@PacNW]

Your Retirement Service Computation Date (RSCD) is also noted in your myEPP page under Home>Personal Info>Miscellaneous. You will lose access to myEPP after 90 days following separation from federal service.

[@wallys7016]

Doesn’t include OT? Thought the first $22,500 of $45,000 counted towards retirement as a CBP officer?

[@planyourfederalretirement]

There are no rules for how far out you can request a Certified Summary of Federal Service - generally, it's a good idea to request it within about 5 years of retiring. If you do not leave your spouse a Survivor benefit, then they would be covered under FEHB while you are alive, but if you passed away, they would not be able to keep it.

[@appleblows1]

You can’t keep your health insurance unless you do 62+20?

[@planyourfederalretirement]

To keep FEHB into retirement, you have two requirements: 1) Be enrolled in FEHB at least 5 years prior to separation from service. 2) Retire with the eligibility of an immediate pension. This would be MRA with 30 years of service, age 60 with 20 years of service, or age 62 with 5 years of service.

[@Buckeye91744]

I have 31 years of service and 57 years old. Will I get 1.1%?

[@paulmartinez471]

You will get the 1.1 after you reach 62 years

[@planyourfederalretirement]

In order to get the 1.1% multiplier, you must retire at age 62 with 20 years (or more) of creditable service.

[@TheMateo2008]

Greetings. I want to retire as soon as possible but I’m 57 years with 25 years of service and 600 hours of Sick Leave. Can you help me.

[@planyourfederalretirement]

We would love to have you schedule with one of our financial planners that specializes in federal benefits. Please contact our office using the form found on our website - zurl.co/9QXt - and our office will call you to get scheduled!

[@pipedreamism1]

If ur 45 years of age do I still have to put in 30 years at usps for full retirement benefits

[@planyourfederalretirement]

In order to be eligible for an immediate, unreduced retirement under FERS, you have to retire at your MRA with 30 years of service, Age 60 with 20 years of service, or Age 62 with 5 years of service. You will have to determine at what age you can retire based on your years of service.