Retire at 80% FERS Law Enforcement. Tammy Flanagan Senior Benefits Director National Institute of Transition Planning, Inc. [email protected] My “Hats” Tammy Flanagan – Benefits Specialist. Writer. www.govexec.com Weekly Column “Retirement Planning”
Edited by Tom Shoop – Senior Editor of Government Executive Magazine
Tomorrow’s Column based on today’s presentation!
OPM on Supreme Court Decision 6-26-13, DC – “Today’s historic decision by the Supreme Court that the Defense of Marriage Act is unconstitutional is a much welcome development in the continuing quest to ensure equal treatment under the law to all Americans. For the federal government as an employer, it will impact benefits for our married gay and lesbian employees, annuitants, and their families.
“In the coming days, OPM will be working closely with the Department of Justice and other agencies to provide additional guidance for federal human resources professionals, benefits officers, and our employees and annuitants. While we recognize that our married gay and lesbian employees have already waited too long for this day, we ask for their continued patience as we take the steps necessary to review the Supreme Court’s decision and implement it. As soon as we have updates to share, they will be posted on our website.”
The percentage stems from the "replacement ratio" studies that Aon Consulting and Georgia State University have done for the last 20 years.
Basically, researchers cull information from the Bureau of Labor Statistics Consumer Expenditures Survey, which details how U.S. consumers, including older households, spend their money.
FERS Basic Retirement Benefit
20 years = 34% of high-three
25 years = 39% of high-three
30 years = 44% of high-three
20 years = 20% of high-three (22% at age 62+)
25 years = 25% of high-three (27.5% at age 62+)
30 years = 30% of high-three (33% at age 62+)
Approximately $40 / month / year of FERS service
What percentage of your salary will this replace?
The United States Social Security Administration
newGet your Social Security Statement online
Get or replace a Social Security card
Apply online for retirement, disability or Medicare benefits
Estimate your retirement benefits
Research popular baby names
Locate a Social Security office
Transfer to IRA
Multiple partial withdrawals
Many investment choices
Legacy planning options
Leave it in TSP
Exception: Separation in the year you reach 55
Exception: Monthly payments based on life expectancy or life annuity
Run Out at age 78
Balance at age 100: $209,484.99
Adds up to 82.4%
Retire 55 with TSP Monthly Payments
Adds up to 74.4%
Retire 57 with TSP Monthly Payments
Adds up to 80%
Retire 50 to Work Part-Time