Retirement from IRSRetirement from IRS

AIM-IRS Annual Business Meeting & Training Seminar AIM-IRS Annual Business Meeting & Training Seminar (ABMTS), Cincinnati, OH(ABMTS), Cincinnati, OH

Presenter: Colleen Keeton-SimsPresenter: Colleen Keeton-Sims

Retirement: AgendaRetirement: Agenda

PlanningPlanning IRS plans (CSRS & FERS)IRS plans (CSRS & FERS) Retirement reasonsRetirement reasons Helpful seminarsHelpful seminars Retirement estimateRetirement estimate What may affect benefits?What may affect benefits? Questions & AnswersQuestions & Answers

Retirement: Planning Retirement: Planning

Hopefully you did the following:Hopefully you did the following: Verified your IRS Plan (e.g. Verified your IRS Plan (e.g.

CSRS, FERS) benefitsCSRS, FERS) benefits Answered probing questionsAnswered probing questions Set & met goalsSet & met goals Diversified your portfolioDiversified your portfolio

Retirement: Planning cont. p2Retirement: Planning cont. p2

Answered probing questions: Answered probing questions: When do I plan to retire?When do I plan to retire? What is required to retire?What is required to retire?

Determine comfortable amountDetermine comfortable amount Paperwork or necessary processesPaperwork or necessary processes

Retirement: Planning cont. p3Retirement: Planning cont. p3

Set & met goalsSet & met goals How I obtained the goal How I obtained the goal

Determined critical objectivesDetermined critical objectives Made plan & checklist Made plan & checklist

Tracking purposes Tracking purposes Monitored status Monitored status Checked off tasks metChecked off tasks met Followed up on incomplete items Followed up on incomplete items

marked for rework marked for rework required changerequired change

Retirement: Planning p4Retirement: Planning p4

DiversifiedDiversified Within IRSWithin IRS

TSP contribution using IRS matchTSP contribution using IRS match

Made outside investmentsMade outside investments secured “nest egg” builderssecured “nest egg” builders

Personal savingsPersonal savings Stock market Stock market IRAsIRAs

Retirement: IRS Plans Retirement: IRS Plans

Civil Service Retirement System Civil Service Retirement System (CSRS)(CSRS)

Federal Employees Retirement Federal Employees Retirement System (FERS)System (FERS)

Retirement: What is CSRS?Retirement: What is CSRS?

CSRS CSRS Hired before 1/1/84Hired before 1/1/84 5 (+) years prior federal service5 (+) years prior federal service Regular CSRS employees fundRegular CSRS employees fund

Contribute 7% of basic pay Contribute 7% of basic pay Law enforcement officers (LEOs)Law enforcement officers (LEOs)

contribute 7.5% of basic paycontribute 7.5% of basic pay

Retirement: CSRS OffsetRetirement: CSRS Offset

Hired before 1/1/84Hired before 1/1/84 left federal service over a yearleft federal service over a year returned after12/31/83 returned after12/31/83

Covered by CSRS and Social SecurityCovered by CSRS and Social Security Contributes 7% Contributes 7% Receives same CSRS benefits until age 62Receives same CSRS benefits until age 62

SSA eligible? CSRS annuity offset SSA eligible? CSRS annuity offset Irrevocable transfer option to FERSIrrevocable transfer option to FERS

Break in service 3 days (+)Break in service 3 days (+) During FERS open season During FERS open season

Retirement: What is FERS?Retirement: What is FERS?

Three tier Annuity planThree tier Annuity plan Basic FERS plan administered byBasic FERS plan administered by

Office of Personnel Management Office of Personnel Management (OPM)(OPM)

Social Security Administration (SSA)Social Security Administration (SSA) Thrift Savings Plan (TSP)Thrift Savings Plan (TSP)

Required if hired after 12/31/83 Required if hired after 12/31/83 Alternative for CSRS Offset Alternative for CSRS Offset

Retirement: ReasonsRetirement: Reasons

Retirement eligibleRetirement eligible Offered early retirementOffered early retirement

Reduction in force (RIF)Reduction in force (RIF) Realignment Realignment

DisabilityDisability On the job injuryOn the job injury

workman compensationworkman compensation Non-job related injury or medical Non-job related injury or medical

Retirement: Helpful seminarsRetirement: Helpful seminars

Attend pre-retirement seminar Attend pre-retirement seminar Locally (Check with BeST)Locally (Check with BeST)

Advise manager want to attendAdvise manager want to attend Interactive Video Teletraining Interactive Video Teletraining

IVT broadcasts held via satelliteIVT broadcasts held via satellite 11am-430pm EST:11am-430pm EST:

CSRS: 9/15/10 & 12/8/10CSRS: 9/15/10 & 12/8/10 FERS: 9/16/10 & 12/9/10 FERS: 9/16/10 & 12/9/10

Retirement: Helpful seminarsRetirement: Helpful seminars

Pre-retirement seminars coverPre-retirement seminars cover Retirement benefitsRetirement benefits Social Security (SSA) Social Security (SSA) TSPTSP Federal Employee Health Benefits Federal Employee Health Benefits

Program (FEHBP)Program (FEHBP) Long Term CareLong Term Care Federal Employees’ Group Life Federal Employees’ Group Life

Insurance Program (FEGLIP) Insurance Program (FEGLIP)

Retirement: Estimate reportsRetirement: Estimate reports Retirement estimates Retirement estimates

Where & how to check retirement Where & how to check retirement benefitsbenefits

HR ConnectHR Connect National finance (NFC) www.usda.nfc.gov National finance (NFC) www.usda.nfc.gov

Employee ConnectionEmployee Connection

On ERC page under “My Profile” tab On ERC page under “My Profile” tab http://erc.web.irs.gov/Profile/http://erc.web.irs.gov/Profile/

Click on “View my benefits information” link Click on “View my benefits information” link http://erc.web.irs.gov/ec/eclogin/erc_get_emphttp://erc.web.irs.gov/ec/eclogin/erc_get_emp_benefitslogin.asp_benefitslogin.asp

Enter your SEID and Employee Connection Enter your SEID and Employee Connection PIN or default (last two digits of SSN followed PIN or default (last two digits of SSN followed by first two digits of SSN)by first two digits of SSN)

Retirement: Obtain estimateRetirement: Obtain estimate

Retirement & benefit statementRetirement & benefit statement periodically sent to address on fileperiodically sent to address on file

Request estimate 45-60 days priorRequest estimate 45-60 days prior Employee Resource Center (ERC)Employee Resource Center (ERC)

866-743-5748 option 1 866-743-5748 option 1

or via IRWeb (Intranet) or via IRWeb (Intranet) OS Get ServicesOS Get Services

Retirement: Estimate receivedRetirement: Estimate received

After receive estimate contactAfter receive estimate contact BeST Specialist BeST Specialist

Verify if benefits are availableVerify if benefits are available Select from eligibility optionsSelect from eligibility options

keep or cancel medical with IRSkeep or cancel medical with IRS keep or cancel life insurance with IRSkeep or cancel life insurance with IRS

Avoid delay submit paperwork timelyAvoid delay submit paperwork timely

Retirement: Estimate receivedRetirement: Estimate received

Once get estimate contact SSAOnce get estimate contact SSA (Social Security Administration) (Social Security Administration)

Coordinate benefits Coordinate benefits disability retirementdisability retirement Medicare (Part A, B, C & D)Medicare (Part A, B, C & D) Military (e.g. TRICARE)Military (e.g. TRICARE)

Retirement: Errors & follow upRetirement: Errors & follow up

Errors & follow up:Errors & follow up: Correct errors withCorrect errors with

BeSTBeST SSASSA

Verify all data receivedVerify all data received If projected receipt date pastIf projected receipt date past Received incorrect quote or payReceived incorrect quote or pay

Submit paperwork timely Submit paperwork timely

Retirement: Benefits affectedRetirement: Benefits affected

Full retirement benefits affectedFull retirement benefits affected Seasonal or part time work Seasonal or part time work Leave (excessive)Leave (excessive) Military Military

pro: time served pro: time served con: received retirement payouts con: received retirement payouts

TSP cash out before age 59 ½TSP cash out before age 59 ½

Retirement: Benefits affectedRetirement: Benefits affected

Government Pension Offset Government Pension Offset (GPO)(GPO) Based on spouse’s workBased on spouse’s work

Retirement: Benefits affectedRetirement: Benefits affected

SSA www.ssa.govSSA www.ssa.gov Early retirement eligible (62 years) Early retirement eligible (62 years)

Returns to work before full retire ageReturns to work before full retire age Makes more than allowedMakes more than allowed

Windfall elimination Windfall elimination Based on your work Based on your work Company did not pay into SSACompany did not pay into SSA

Teachers (some districts do but rare)Teachers (some districts do but rare) Postal workersPostal workers

QuestionsQuestions

Thank you for coming! Thank you for coming! The floor is open for questions The floor is open for questions

ReferencesReferences

Government Pension Offiset (GPO) based on Spouse: Government Pension Offiset (GPO) based on Spouse: http://erc.web.irs.gov/DisplayAnswers/AnswerType.asp?http://erc.web.irs.gov/DisplayAnswers/AnswerType.asp?FolderID=5&CategoryID=2&SubCategory=193&QuestionID=1706FolderID=5&CategoryID=2&SubCategory=193&QuestionID=1706

IVT: IVT: http://irweb.irs.gov/AboutIRS/bu/cl/comm/tv/training/csrsfers/default.aspx http://irweb.irs.gov/AboutIRS/bu/cl/comm/tv/training/csrsfers/default.aspx

Windfall elimination based on you not spouse: Windfall elimination based on you not spouse: http://erc.web.irs.gov/DisplayAnswers/AnswerType.asp?http://erc.web.irs.gov/DisplayAnswers/AnswerType.asp?FolderID=5&CategoryID=2&SubCategory=193&QuestionID=1705FolderID=5&CategoryID=2&SubCategory=193&QuestionID=1705

Social Security Administration (SSA) www.ssa.govSocial Security Administration (SSA) www.ssa.gov