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Federal Retirement Benefits for FERS Employees. The National Institute of Transition Planning. intro. Bob Braunstein, Federal HR Consultant. 1966-1997 Federal Government Predominantly in Treasury Department Bureaus (IRS, ATF, OCC); full range of HR positions

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federal retirement benefits for fers employees

Federal Retirement Benefits for FERS Employees

The National Institute of Transition Planning

intro

bob braunstein federal hr consultant
Bob Braunstein, Federal HR Consultant
  • 1966-1997 Federal Government
    • Predominantly in Treasury Department Bureaus (IRS, ATF, OCC); full range of HR positions
  • Expertise in Staffing, Classification, Benefits, Employee Relations, Retirement Counseling, FERCCA
  • 1997 to present – consultant to Federal agencies for Human Resources Projects through:
    • National Academy of Public Administration
    • Kelly Anderson and Associates
    • Economic Systems Inc.
    • National Institute of Transition Planning
  • Latest HR projects have been with NASA, Navy, HHS, NIH, TSA, Peace Corps
  • FERCCA Project (OPM, USPS and DOJ cases)
  • Developed eSeminar application for ESI
module 1 your retirement benefit
Module 1: Your Retirement Benefit

1-2

Step 1: Determine your eligibility

Step 2: Determine your basic retirement benefit

Step 3: Identify age factors that affect a benefit

Step 4: Determine whether to pay a civilian deposit

Step 5: Consider survivor benefits

Step 6: Determine whether to pay a CSRS redeposit

Step 7: Determine whether to pay a military deposit

determine your eligibility
Determine Your Eligibility

1-3

  • Your retirement system
  • The type of retirement
  • Your age
  • Your years of creditable service
the federal retirement systems
The Federal Retirement Systems

1-4

1920

1987

1984

CSRS

CSRS Interim

FERS/

CSRS Offset

employee and agency contributions fers

1-5

Employee and Agency Contributions: FERS

7% to Retirement (.8 to FERS; 6.2 to SS/Matched by Agency)/TSP match

$

$

$

$

$

$

$

$

Social

Security

CSRDF

TSP

retirement options
Retirement Options

1-6

  • Immediate (regular)
  • Early (VERA or discontinued service)
  • Disability
  • Deferred
  • Special provisions
creditable service
Creditable Service

1-7

  • Civilian Service
  • Military service
  • Includes:
  • Part-time
  • Breaks in service of 3 days or less
  • LWOP (up to 6 mo)
  • Intermittent
  • Uncovered service (with exceptions)
  • Refunds for CSRS
  • CSRS Handbook (chaps 20-23)
fers minimum age and service requirements
FERS Minimum Age and Service Requirements

1-9

MRA based on year born (chart on page 1-9)

ORDS

  • LEO and FF (age 57 mandatory.)
  • ATC (age 56 mandatory.)
steps for planning your retirement benefit
Steps for Planning Your Retirement Benefit

1-10

1: Determine your eligibility

2: Determine your basic retirement benefit

3: Identify age factors that affect a benefit

4: Determine whether to pay a civilian deposit

5: Consider survivor benefits

6: Determine whether to pay a CSRS redeposit

7: Determine whether to pay a military deposit

determine your basic retirement benefit

Length of

Service

High 3

Determine Your Basic Retirement Benefit

1-10

Formula

Retirement Benefit

(CSRS, CSRS Offset, FERS)

length of service
Length of Service
  • Retirement Date – SCD = Length of Service
  • Not always same as leave SCD
  • All months have 30 days; add one day for last day worked

1-11

31

2

19

Certified Summary on pages 1-12 and 1-13

calculate your high 3 salary
Calculate Your High-3 Salary

1-16

Your high-3 salary is your highest average basic pay over any consecutive 3-year period in Federal service.

basic pay
Regular pay

Locality-based pay

Premium pay

Night differential for WG

Special Pay for recruitment/retention

Annual leave lump sum

Bonuses and overtime

Night differential other than WG

Travel allowances

Geographic/post differential

Basic Pay

1-16

YES

No

Tip: Your % ret. Deduction is a direct fraction of your allowable base pay

determine your average high 3 salary
Determine Your Average High-3 Salary

1-17

Reference Chart on Page 1-18 for factors

fers retiree annuity supplement
FERS Retiree Annuity Supplement

1-23

Social Security

Retirement

  • Must be under FERS
  • Must be under 62
  • Not age-reduced retirement
  • LEOs/FFs/ATCs at MRA
  • Earnings Tested
disability retirement fers
Disability Retirement (FERS)

1-25

  • Combination of civil service and Social Security benefits
  • Benefit is recalculated after the first 12 months and at age 62
example fers disability
Example: FERS Disability

1-25

  • Age: 42
  • Years of service: 20
  • High-3 salary: $45,000
  • Denied a SS disability benefit*
  • *If SS disability approved:
  • Fully Offset by disability annuity during first year
  • 60% offset during years until age 62
  • At age 62, no longer offset
cost of living adjustment
Cost-of-Living Adjustment

1-27

Based on the change in the CPI – p 1-27 chart

  • Provided for all CSRS retirees
  • Based on CPI
  • Immediate
  • Prorated per retirement date
  • Generally provided for FERS retirees 62 and older
  • Diet Colas
  • Usually 1% less
  • Prorated per date eligible
the best day to retire
The Best Day to Retire

1-28 & 29

Best Day for CSRS Employees

  • Discontinued Service and Disability – annuity begins next day
  • Disability – better of date after separation or last day of pay
  • Deferred – annuity begins on 62nd birthday for CSRS; for FERS 1st day of month after 62nd birthday or MRA (with 10 yrs or more)

Best Day for FERS Employees

steps for planning your retirement benefit26
Steps for Planning Your Retirement Benefit

1-30

1: Determine your eligibility

2: Determine your basic retirement benefit

3: Identify age factors that affect a benefit

4. Determine whether to pay a deposit

5: Consider survivor benefits options

6: Determine whether to pay a CSRS redeposit

7: Determine whether to pay a military deposit

steps for planning your retirement benefit28
Steps for Planning Your Retirement Benefit

1-35

1: Determine your eligibility

2: Determine your basic retirement benefit

3: Identify age factors that affect an benefit

4. Determine whether to pay a civilian deposit

5: Consider survivor benefits options

6: Determine whether to pay a CSRS redeposit

7: Determine whether to pay a military deposit

determine whether to pay a civilian deposit
Determine Whether to Pay a Civilian Deposit

1-35

  • A deposit is payment for civilian service that was not covered by retirement deductions (temporary service, military service, WAE service)
  • Consider your retirement system, dates of service, and how much you owe
fers civilian deposits
FERS Civilian Deposits

1-38

Two time periods:

  • Pre 1/1/89 (must be paid for credit in both SCD and annuity)
  • On or after 1/1/89 (deposits cannot be made; service will not count)
example fers civilian deposit pre 1 1 89
Example: FERS Civilian Deposit Pre-1/1/89

1-38

  • 1 year of nondeduction
  • Total base pay = $20,000
  • Deposit = $800
  • Employee’s high-3 salary = $65,000
steps for planning your retirement benefit32
Steps for Planning Your Retirement Benefit

1-39

1: Determine your eligibility

2: Determine your basic benefit

3: Identify age factors that affect a benefit

4. Determine whether to pay a civilian deposit

5: Consider survivor benefits options

6: Determine whether to pay a CSRS redeposit

7: Determine whether to pay a military deposit

consider survivor benefits
Consider Survivor Benefits

1-39

  • Survivor Elections:
    • Spousal survivor benefit
    • Insurable interest survivor benefit
  • Other survivor benefits:
    • Child’s survivor benefit
    • Lump-sum payments to beneficiaries
spousal survivor benefit
Spousal Survivor Benefit

1-40

May elect maximum, partial, or no benefit

  • The retiree does not need to be in good health at the time of election
  • Generally, the marriage must have lasted at least 9 months or birth of first child
  • Ends if the survivor remarries before age 55, unless married for 30 years or more
example fers spousal survivor benefits
Example: FERS Spousal Survivor Benefits

1-41

Retirement Benefit = $20,000

death in service benefit for spouse
Death in Service Benefit for Spouse

1-42

  • A lump-sum benefit of $28,093, plus 50% of your final salary with less than 10 years of service (but at least 18 mos.)
  • Survivor benefit paid with 10 years or more of service
insurable interest survivor benefit
Insurable Interest Survivor Benefit

1-44

Retiree must:

  • Be in good health
  • Not retire under disability
  • Can name only one person at time of retirement:
    • A close relative (OPM assumes relationship)
    • Someone who depends on retiree for support (affidavit needed)
children s survivor benefit
Children’s Survivor Benefit

1-45

  • Payable to dependent children upon the death of a retiree (page 1-45)
  • An automatic benefit; no election is required
lump sum payment of retirement contributions
Lump-Sum Payment (of Retirement Contributions)

1-46

If no one entitled to survivor annuity

  • Retirement contributions go to beneficiaries on SF-3102; or
  • Your widow or widower
  • Your children or their descendants
  • Your parents
  • Executor your will
  • Other next of kin

Other beneficiary forms in Appendix B on page B-3

steps for planning your retirement benefit43
Steps for Planning Your Retirement Benefit

1-47

1: Determine your eligibility

2: Determine your basic retirement benefit

3: Identify age factors that affect a benefit

4. Determine whether to pay a civilian deposit

5: Consider survivor benefits options

6: Determine whether to pay a CSRS redeposit

7: Determine whether to pay a military deposit

determine whether to pay a redeposit for csrs component
Determine Whether to Pay a Redeposit (for CSRS Component)

1-47

Two time periods:

  • Pre 10/1/90
  • On or after 10/1/90
  • Time counts for SCD even if not paid
  • Affect on annuity will differ by period (p 1-47)
example csrs component redeposit pre 10 1 90
Example: CSRS ComponentRedeposit Pre 10/1/90

1-48

  • Age 60
  • Refund = $10,000
  • Redeposit = $25,000 (principal and interest owed)

* From Present Value Factor Table on p 1-49

example csrs redeposit post 10 1 90
Example: CSRS Redeposit Post 10/1/90

1-48 & 49

  • Refund = $10,000 for 10 years of service
  • Redeposit = $25,000 (principal and interest owed)
  • Employee’s high-3 salary = $65,000

VC

steps for planning your retirement benefit47
Steps for Planning Your Retirement Benefit

1-50

1: Determine your eligibility

2: Determine your basic retirement benefit

3: Identify age factors that affect a benefit

4. Determine whether to pay a civilian deposit

5: Consider survivor benefits options

6: Determine whether to pay a CSRS redeposit

7: Determine whether to pay a military deposit

example fers military service deposit
Example: FERS Military Service Deposit

1-51 & 52

  • Total base pay = $20,000
  • Deposit = $1,800 (principal and interest owed)
  • Employee’s high-3 salary = $65,000
retired from the u s military
Retired From the U.S. Military

1-53

  • Combine military with civilian service
  • Waive military retirement annuity
  • May or may not benefit by combination
example retired from the military fers page 1 54
Example: Retired from the Military (FERS) page 1-54
  • Total base pay = $200,000
  • Deposit = $18,000
  • Military pay = $15,000 (principal and interest owed
  • High three average salary: $65,000
summary
Summary

1: Determine your eligibility

2: Determine your basic retirement benefit

3: Identify age factors that affect a benefit

4. Determine whether to pay a civilian deposit

5: Consider survivor benefits options

6: Determine whether to pay a CSRS redeposit

7: Determine whether to pay a military deposit

module 2 social security53

Module 2: Social Security

Module 2: Social Security

2-1

  • Qualifying for a benefit
    • Who
    • How
    • When
  • Calculating your benefit
  • Benefits for family members
  • When to apply for a retirement benefit
qualifying for a benefit how
Qualifying for a Benefit: How

2-3

  • Pay FICA taxes (6.2% of wages up to $106,800
  • Earn 40 credits

$1,090 = 1 credit

4 credits per year

qualifying for a benefit when
Qualifying for a Benefit: When

2-4

  • Full benefit at your full retirement age
  • Reduced benefit at age 62

If you were born in 1960 or later:

  • Your retirement age is 67
  • You will receive 70% of your full benefit at age 62 – see chart on Page 2-4
topics
Topics

2-5

  • Qualifying for a benefit
    • Who
    • How
    • When
  • Calculating your benefit
  • Benefits for family members
  • When to apply or a retirement benefit
calculate your estimated monthly benefit
Calculate Your Estimated Monthly Benefit

2-5

1. Enter actual earnings

2. Multiply earnings by index factor (see example on page 2-6)

3. Add the 35 highest annual indexed amounts

4. Divide by 420 to establish the AIME

calculate your estimated monthly benefit58
Calculate Your Estimated Monthly Benefit

2-5

5. Apply the AIME to the formula:

a. 90% of $744

b. 32% of $744 through $4,483

c. 15% of amount over $4,483

6. Add a, b, and c

delayed retirement credits
Delayed Retirement Credits

2-10

  • Your full benefit increases for every month you delay retirement beyond full eligibility age
  • Increase varies based on your year of birth
  • Generally 8% per year up to age 70 (see chart on p 2-10)
  • Spousal benefit also increases
reduction due to earnings
Reduction Due to Earnings

2-11

Pearl, age 62

  • Receives $12,000 per year SS benefit
  • Earns $25,000 per year ($10,840 over the limit)
  • Will receive a benefit of $6,580 (reduced by $5,420)

Should she postpone her benefit?

reduction due to earnings63
Reduction Due to Earnings

2-12

Jerry, age 62:

  • Retired on August 30
  • Earned $45,000 through August
  • Earns $800 per month in retirement

His earnings through August will not affect his benefit.

topics64
Topics

2-13

  • Qualifying for a benefit
    • Who
    • How
    • When
  • Calculating your benefit
  • Benefits for family members
  • When to apply or a retirement benefit
benefit for family members
Benefit for Family Members

2-13

  • Based on the employee’s full benefit
  • Maximum amount payable to a family ranges from 150 to 180% of the worker’s full benefit
  • Chart on page 2-13 shows % amounts
benefit for a current spouse
Benefit for a Current Spouse

2-14

Gary, age 65, receives an earned benefit of $1,200

Lucinda, age 62, receives a spousal benefit of $450 (37.5% of $1,200)

widow s benefit
Widow’s Benefit

2-14

Gary is now deceased

Lucinda’s widow’s benefit is $1,200

benefit for a former spouse
Benefit for a Former Spouse

2-15

  • Marriage lasted over 10 years
  • Former spouse is at least 62 and unmarried
  • Worker is entitled to or receiving benefits
benefit for a former spouse69
Benefit for a Former Spouse

2-16

  • Juan, age 65, receives $1,200
  • Ex-wife, age 62 and unmarried, receives $450
  • Current wife, age 62, receives $450
dual entitlement
Dual Entitlement

2-17

  • Workers may qualify for an earned and a spousal benefit
  • You cannot apply for a spousal benefit until your spouse receives a benefit
  • You will receive the higher of the two benefits, not both
dual entitlement71
Dual Entitlement

2-17

Example 1

Joe’s earned benefit = $1,600

Becky’s reduced earned benefit = $375

Becky’s spousal benefit = $600

Example 2

Leon’s earned benefit = $1,000

Patti’s earned benefit = $1,400

Could draw spousal and wait for own benefits at 70

topics72
Topics

2-19

  • Qualifying for a benefit
    • Who
    • How
    • When
  • Calculating your benefit
  • Benefits for family members
  • When to apply for a retirement benefit
when to apply
When to Apply

2-19

Ana may receive:

  • $750 per month at age 62
  • $1,000 per month at age 66

She will have received $36,000 by age 66. It will take 12 years to break even. Age 78 is the break-even point.

Consider longevity, financial need, other income, tax bracket

tsp contributions
TSP Contributions

4-2

CSRS and FERS employees may contribute but only FERS employees receive matching funds

2009: $16,500 employee tax deferred limit

catch up contributions
Catch-Up Contributions

4-3

  • Employees age 50 and over
  • Supplemental tax-deferred contributions of $5K
  • IRS sets maximum catch-up amount ($5.5K in 2009)
  • Must maximize regular contributions to be eligible ($22K is possible total in 2009)
  • Use TSP 1-C (must elect every year)
investment options
Investment Options

4-4

Risk

High

I

S

Moderate

C

F

G

Low

Funds

See Chart on p 4-4

l funds
L Funds

4-5

  • Diversify the funds in your TSP
  • Investments tailored to your time horizon
  • Investments are more aggressive with later time horizon

(See L Funds Allocation Chart on Page 4-5)

in service withdrawal options
TSP loan program

Minimum 1K

Up to vested balance capped at 50K

Pay back at G fund rate

In-service withdrawal program

59 ½ for any reason

Earlier for hardship (penalty if under 59 ½)

TSP 75

In-Service Withdrawal Options

4-6

tsp at retirement or separation
TSP at Retirement or Separation

4-7

  • Can withdraw a portion or all of funds
  • Can make interfund transfers
  • Cannot contribute to your account
  • Cannot borrow from your account
options at retirement or separation
Options at Retirement or Separation

4-8

  • Partial (once)
    • not available if in-service withdrawal taken
  • Full
    • Single payment
    • Monthly payments
      • Life expectancy
      • Amount of your choosing
    • Life annuity
  • If withdrawn at separation and

under 55, can avoid penalty through:

    • Life annuity
    • Life expectancy payment stream
transfer funds to an ira
Transfer Funds to an IRA

4-9

  • Taxes will continue to be deferred
  • Choose from limitless investment choices
  • Make multiple partial withdrawal
  • May pay high management fees
  • Early withdrawal tax penalties may apply
    • (usually must be 59 ½ to withdraw without penalty vs 55 in TSP)
monthly payment based on a specific dollar amount
Monthly Payment Based on a Specific Dollar Amount

4-10

  • Choose an amount of $25 or more
  • Receive payment until fund is depleted
  • Continue to make interfund transfers
  • May change amount once per year

(Your TSP account is still active … this is not an annuity! – so you can outlive your money!)

example specified monthly payments
Example: Specified Monthly Payments

4-10

Payment: $3,000

An account balance of $500,000 earning 6% will provide payments for 30 years

life annuity
Life Annuity

4-12

  • Provides a monthly income for life
  • Purchased with TSP funds
  • Monthly payment is determined by:
    • Choice of annuity
    • Your age
    • Your TSP account balance
    • The market interest rate
life annuity options
Life Annuity Options

4-12 & 4-13

Calculator example

module 3 insurance89
Module 3: Insurance

3-1

  • Health
    • FEHB
    • Medicare
  • Life
  • Long-term care
the fehb program
The FEHB Program

3-2

  • Retire on an immediate annuity or postponed* FERS MRA + 10
  • Are covered continuously for the 5 years of service immediately preceding retirement (as holder or family member)

You may continue your coverage if you:

* If postponed, coverage ends until annuity is activated

enrollment in fehb
Enrollment in FEHB

3-3

  • Open season same as for employees
  • Same coverage for family members
  • Can’t cancel coverage (unless to be family member or covered under another person’s FEHB plan)
  • Can suspend coverage to be in:
    • Tricare (or Tricare for Life)
    • Medicare Advantage
federal flexible spending accounts
Federal Flexible Spending Accounts

3-5

  • Use pre-tax dollars to pay for medical and/or dependent care expenses
  • Elect yearly contributions as allotments
  • Draw funds as expenses are incurred
  • Up to $5K for each account
  • Use it or lose it!
federal fsas and retirement
Federal FSAs and Retirement

3-6

  • Retirees are not eligible to participate, so be sure to plan accordingly
  • You must use HCFSA funds before retirement (but can continue to pay for pre-retirement expenses)
  • You are not responsible for continuing HCFSA payments after retirement
  • You may use remaining DCFSA funds after retirement for expenses incurred during plan year
federal employees dental and vision insurance program
Federal Employees Dental and Vision Insurance Program

3-8

  • Comprehensive dental and vision benefits
  • No five year coverage requirement
  • Retirees may enroll during open season
  • May enroll in either, both or none
  • Can drop coverage and later reenroll during Open Season
medicare
Medicare

3-9

Part A—Hospitalization (HI)

Part B—Doctors services, outpatient care (SMI)

Part C—Medicare Advantage Plans

Part D—Prescription drug coverage

coordination of benefits
Coordination of Benefits

3-14

  • Primary payer
  • Secondary payer
  • Tertiary payer

Chart on Page 3-14

medicare part a and fehb
Medicare Part A and FEHB

3-11

*Primary payer – Medicare

Secondary payer – FEBP

* Generally when you are 65 AND retired

enrollment in medicare b
Enrollment in Medicare B

3-10

  • Enrollment at age 65
  • Initial enrollment period of 7 months (starts 3 months before you turn 65)
  • Subsequent enrollment from 1/1 through 3/31 each year – coverage starts 7/1
  • Late enrollment for Medicare B – 10% surcharge per each 12 month delay
  • Premiums (page 3-10)
  • Change in FEHB enrollment (outside of Open Season) to better match Medicare coverage
medicare part b and fehb
Medicare Part B and FEHB

3-12

Do you need Part B? Options are:

  • Fee-for-service plan and Part B
  • Fee-for-service plan only
  • HMO only
fehp fee for service plan and part b
FEHP Fee-for-Service Plan and Part B

3-12

* If deductible not met, $135 applied and Medicare pays $465 in this example; FEHB still picks up balance

fehp fee for service plan only
FEHP Fee-for-Service Plan Only

3-12

*Depending on whether provider accepts Medicare assignment as payment in full

fehb hmo only
FEHB HMO Only

3-13

Consider Part B to get better coverage outside your network – up to 80%

topics103
Topics

3-15

  • Health
  • Life
  • Long-term care
life insurance fegli
Life Insurance (FEGLI)

3-15

  • Basic and 3 optional types of coverage
  • The Government pays 1/3 of the premium for basic life
  • Employees pay 2/3 of the premium for basic life and the total cost of optional coverage
basic life
Basic Life

3-16

Coverage = Salary, rounded up, + $2,000

Cost is $0.15 per $1,000 biweekly

Salary = $47,500

Coverage = $50,000

Cost is 50 x .15 = $7.50 biweekly

option a standard
Option A: Standard

3-16

Basic coverage plus $10,000

option b additional
Option B: Additional

3-16

Basic coverage plus 1 to 5 times your annual base pay (see chart on 3-16 for amounts)

option c family
Option C: Family

3-16

Basic coverage plus:

  • $5,000 for spouse
  • $2,500 per dependent child

Additional coverage in multiples of up to 5 times the base amount

fegli and retirement
FEGLI and Retirement

3-17

You may continue your coverage if you:

  • Retire on an immediate annuity or MRA + 10
  • Have been covered for the 5 years of service immediately preceding retirement
  • Have not converted to an individual policy
  • Have not waived basic life insurance
basic fegli and retirement
Basic FEGLI and Retirement

3-18

  • Regular coverage until age 65
  • After age 65:
    • 75% reduction
    • 50% reduction
    • No reduction
optional coverage and retirement
Optional Coverage and Retirement

3-19

  • Option A coverage reduces to $2,500
  • Options B and/or C coverage
    • Full reduction
    • No reduction (can later change to full reduction)
    • Can also cancel one or more multiples at any time (B is very expensive at 55 and older) –

see chart on page 3-19 for rates

topics113
Topics

3-20

  • Health
  • Life
  • Long-term care
why plan for ltc
Why Plan for LTC?

3-20

  • Longer lifespan
  • After age 65, 70% chance of needing LTC
  • High costs could deplete financial resources
long term care
Long-Term Care

3-20

Nonskilled custodial care:

  • Helps with activities of daily living
    • Bathing
    • Dressing
    • Eating
    • Transferring
    • Toileting
  • Provides supervision of individuals with cognitive impairment
cost of ltc
Cost of LTC

3-20

$190,600

$68,000

$61,685

$23,000

2004

2030

2004

2030

Home Health Care

Nursing Home Care

who pays for ltc
Who Pays for LTC?

3-21

  • Medicare and health insurance?
  • Medicaid?
  • The Department of Veterans Affairs?
  • The Area Agency on Aging?
  • LTC insurance?
  • Family/out-of-pocket?
savings versus insurance
Savings Versus Insurance

3-21

LTC Insurance

($150 DBA, 3-yr; inflation protect.)

$190,600

$709,878

Savings (6% int.)

$164,250

$93,721

$93.30

$93.30

$93.30

Value in 30 years

Value after first payment

Value in 30 years

Value after first payment

Monthly

savings

Monthly

premium

fltcip
FLTCIP

3-22

Underwritten by LTCP

  • Provides an informal care benefit (non-professional; usually volunteer)
  • Provides international coverage
  • No war exclusion (benefits paid for conditions resulting from war/acts of war)
  • Offers a variety of plan options
  • New contract awarded (some rates will increase) – current policy holders can change options without underwriting
fltcip plans
FLTCIP Plans

3-22

  • Choose or design a plan
  • Five essential decisions to make:
    • Facilities-only or comprehensive
    • Daily benefit amount
    • Benefit period
    • Elimination period
    • Inflation protection
facilities only or comprehensive
Facilities-Only

Nursing home care

Care in an assisted living facility

Hospice care in a facility

Respite care in a facility

Caregiver training

(All care in formal setting)

Comprehensive

Facilities-only plus:

Home care (75% DBA)

Adult daycare (75% DBA)

Hospice care at home (100% DBA)

Respite care at home (100% DBA)

Facilities-Only or Comprehensive

3-23

daily benefit amount
Daily Benefit Amount

3-23

  • $50–$300 ($25 increments)
  • Up to 100% for nursing home care
  • Up to 75% for home and adult daycare (comprehensive option only)
benefit period
Benefit Period

3-24

Unlimited . . .

3 years

5 years

1

2

3

4

5

6

7

8

9

10

11

12

13

Enter

nursing

home

Years

elimination period
Elimination Period

3-24

  • Choice of 30 or 90 days
  • Satisfy only once in the life of the policy
  • Days are cumulative over the life of policy
  • Needn’t be for same care episode
  • Waived for hospice and respite services and caregiver training
  • Considers only actual dates of service
inflation protection
Inflation Protection

3-25

  • Automatic Compound Inflation Option (ACIO)
    • Benefits automatically increase 5%
    • No increase in premium
  • Future Purchase Option (FPO)
    • You may increase your benefit
    • Additional premium for additional coverage
    • Switch to ACIO with no underwriting

(page 3-23)

ltc insurance tools
LTC Insurance Tools

3-27

  • Cost of care in your area
  • Realities of paying for LTC yourself
  • Calculate FLTCIP Premiums

(at www.ltcfeds.com)

summary127
Summary
  • Health
  • Life
  • Long-term care
slide128

5

4

3

Countdown to Retirement

Good Luck!

2

1

eseminar website
eSeminar Website
  • www.csrsfers.com/nitp
  • Enter code: NITPESI070308
  • Set up User ID and Password
  • Log-in to:
    • eSeminar
    • FRBe
    • FBM
  • Access is 24/7 for 30 days
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