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Retirement Overview. Simplified Acquisition Symposium April 22, 2009. Federal Retirement Systems. Civil Service Retirement System (CSRS) (includes CSRS-Offset) Federal Employees Retirement System (FERS). CSRS Basic Benefit. Based on: High-3 Average Salary

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Retirement overview l.jpg

Retirement Overview

Simplified Acquisition Symposium

April 22, 2009


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Federal Retirement Systems

  • Civil Service Retirement System (CSRS) (includes CSRS-Offset)

  • Federal Employees Retirement System (FERS)

National Institutes of Health

Human Capital Group


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CSRS Basic Benefit

  • Based on:

    • High-3 Average Salary

    • Federal civilian and military service (may require deposit)

    • Unused sick leave

National Institutes of Health

Human Capital Group


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CSRS Formula

  • 1.5% of High 3 x 1st 5 years of service

  • 1.75% of High 3 x 5 years of service

  • 2% of High 3 x remaining years of service

  • Quick formula: Total Service minus 2 times 2

National Institutes of Health

Human Capital Group


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CSRS Offset

  • Same formula as CSRS

  • Annuity reduced at age 62 if eligible for Social Security

  • Reduction based on amount of SS benefits earned while covered under CSRS Offset

National Institutes of Health

Human Capital Group


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FERS Basic Benefit

  • 1% of your High-3 x each year of service (must make a deposit for military service)

  • A FERS employee with 30 years of service will receive 30% of their high-3 average salary

  • If you retire at age 62 with at least 20 years of service 1.1% of high-3

National Institutes of Health

Human Capital Group


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Social Security Benefit

  • Eligible for reduced social security benefit at age 62

  • Eligible for unreduced benefits at age 65 – 67.

  • Receive a statement each year from SSA

  • www.ssa.gov

National Institutes of Health

Human Capital Group


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Thrift Savings Plan

  • Tax deferred retirement savings acct

  • Eligible under both CSRS and FERS

  • Contributions limited by IRS

  • Vested in employee and agency matching contributions.

  • Vested in agency automatic contributions after 3 years.

  • TSP calculator (www.tsp.gov) available

National Institutes of Health

Human Capital Group


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TSP CSRS

  • No agency contributions

  • TSP limit 2008 - $15,500

  • TSP limit 2008 catch up - $5,000

  • Use myPay to request contributions

National Institutes of Health

Human Capital Group


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TSP FERS

  • Employee contributions

    • TSP limit 2008 - $15,500

    • TSP limit 2008 catch up - $5,000

  • 5% Agency contributions -

    • automatic 1%,

    • Matching – 1st 3% matched dollar-for-dollar, next 2%, 50 cents on the dollar.

National Institutes of Health

Human Capital Group


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TSP

Investment Options

  • Government Securities (G-fund)

  • Fixed Income Index fund (F-fund)

  • Common Stock fund (C-fund)

  • Small Cap Stock fund (S-fund)

  • International Stock fund (I-fund)

National Institutes of Health

Human Capital Group


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TSP

Lifecycle fund (L-fund)

Select If time horizon is

  • L 2040 (2035 or later)

  • L 2030 (2025 thru 2034)

  • L 2020 (2015 thru 2024)

  • L 2010 (2008 thru 2014)

  • L Income (sooner than 2008)

National Institutes of Health

Human Capital Group


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TSP

Withdrawal Options:

  • Lump-sum, and/or

  • Equal monthly payments, and/or

  • Life annuity w/wo survivor annuity, and/or

  • Transfer account balance to IRA.

    A one-time opportunity for a partial withdrawal either lump sum or transfer balance.

    Must begin withdrawal by age 70 ½.

National Institutes of Health

Human Capital Group


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Life Insurance

Eligible to continue coverage provided you are:

  • Covered at retirement

  • Continuous coverage for at least 5 years preceding retirement

  • Elections available for continuation of coverage.

National Institutes of Health

Human Capital Group


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Health Insurance

Eligible to continue coverage provided you are:

  • Covered at retirement

  • Continuous coverage for at least 5 years preceding retirement

  • Same premium payment – post-tax

  • Continuation of coverage for spouse provided a survivor benefit payable

National Institutes of Health

Human Capital Group


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Medicare

  • Eligible at age 65

  • Part A – Hospital benefits – no cost

  • Part B – Medical benefits - $96.40

  • Part D – Prescription

  • Primary coverage after retirement

  • FEHB Secondary – waive calendar year deductables and co-payments

National Institutes of Health

Human Capital Group


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Eligible to continue coverage after retirement.

Payment options available.

www.LTCFEDS.com

1-800-582-3337

Long Term Care Insurance

National Institutes of Health

Human Capital Group


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FEDVIP

The Federal Employee Dental and Vision Insurance Program

  • Eligible to enroll as retiree.

  • Eligible to continue coverage on post-tax basis.

  • www.BENEFEDS.com - 1-877-888-3337

National Institutes of Health

Human Capital Group


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QUESTIONS

?????

National Institutes of Health

Human Capital Group


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