Federal Employees

CSRS Employees

If you were hired before Dec 31, 1983 you are more than likely a Civil Service employee. There are many aspects of being a CSRS employee that you need to be aware of and that we would like to help you understand.

  • How to keep your federal health insurance in place through retirement not only for you, but for your surviving spouse as well.
  • How to determine your “RSCD- Retirement Service Computation Date”. Getting this number wrong can mean you are not eligible to retire and it will take OPM up to 6 months to catch the error. If you were not eligible- you have to go back to work (this has actually happened to hundreds of employees).
  • Military time- should you buy it back and if so how much will it cost you?
  • Temporary time- will it count towards retirement and if so, how much?
  • Voluntary Contribution accounts- how to manage those monies in order to reduce taxes.
  • How much of a survivor’s annuity should you leave to your spouse, and is the government annuity the best way to go.
  • How to maximize your TSP funds in retirement and lowering taxes.

FERS Employees

Most employees hired Jan 1, 1984 and later were more than likely a part of the Federal Employees Retirement System (FERS). There are a few exceptions for those people who had 5 years CSRS employment, left service and then came back (CSRS Off-set), but by and large most people working today are a part of the new FERS retirement system.

When FERS was created, it put more of the burden on federal employees to ensure they had enough money saved to retire. A typical CSRS employee could depend on at least 56% of their high three salaries from the government until they died. A FERS employee would only get 30% of their highest three years of salary from the government and would have to make up the difference between their TSP contributions and Social Security.

Many FERS employees do not know this and are going to be in a very difficult position when they reach retirement age. Knowing how much you will have and how much you need is priceless information. The earlier you can get this information the better you can plan and ensure you are not working until 70 like many federal employees.

When you meet with a Federal Employee Retirement Specialists representative, we can determine how much you will have in retirement and how much you need in order to maintain your lifestyle and to ensure you can retire when you want to. It’s a very difficult process to evaluate how much you need to retire and it is an area we would love to offer our assistance.

If you are a Special Provisions Employee you have a mandatory retirement date. Such people as Air Traffic Controllers, Federal Police, Firefighters and many others have a different retirement system than everyone else. These positions get special treatment of their retirement date and the amount the government is contributing to their retirement annuity.

Special Provision Employees

If you are a Special Provisions Employee it is important that you understand the mandatory retirement dates and your retirement contributions to ensure you are able to retire when the government tells you.

Many of the Special Provisions Employees also have military time that may be eligible time for retirement and many of these employees could retire earlier than they thought if they knew the time counted.

Another area that commonly affects this group of federal employees is when they retire and seek employment in the private sector. Working in the private sector means you are contributing to social security and this can ultimately affect your government pension if you accumulate 40 quarters of SSI in your new job. It is critical that you understand those rules and implications up front so you know how to get the most out of your pension and your private sector job.

Because of the special nature of this group of employees, Federal Employee Retirement Specialists provides educational seminars on the different aspects of Special Provisions employees and can help you make the right decisions that are best for you and your families.