Retirements

Point of ContactsSupervisor:

CW3 Priscilla Burnah @ (518) 786-4782

Human Resources Specialist:SSG Trish Cormier @ (518) 786-4448SSG John Amirault @ (518) 786-4737 Alma Pennington @ (518) 786-4725/4950SPC Rachael Hewitt @ (518) 786-4681

2

• Federal Employees Retirement System (FERS)• Military/Civilian Deposit• Retirement Eligibility• Beneficiary Forms

Agenda

3

Agenda

• Federal Employees Health Benefits (FEHB)• Thrift Savings Plan (TSP)• Federal Employees Group Life Insurance

(FEGLI)• Employee Benefits Information System (EBIS)• Flexible Spending Accounts (FSA)• Federal Long Term Care Insurance Program

(FLTCIP)• Federal Employees Dental and Vision Insurance

Program (FEDVIP)

• Military Deposit (P-56)4

1

FERS

FERS-RAE

FERS-FRAE

Types of FERS

6

Retirement Coverage Determination

1. FERSNew employees first hired in covered position on

01-01-1987 through 12-31-2012 Employee Contributes 0.8% of basic pay to retirement system

2. FERS-RAEEmployees in a covered position hired after 1 Jan 13

Employee Contributes 3.1% of basic pay to retirement system

3. FERS-FRAENew employees in a covered position hired after 1 Jan

14Employee Contributes 4.4% of basic pay to retirement system

• Employees excluded from FERS-RAE or FERS-FRAE if any of the following exceptions apply:

The individual on December 31, 2012, was covered under FERS The individual on December 31, 2012, was performing civilian

service which is creditable or potentially creditable service under FERS (for example, the individual may have been performing service as a Peace Corps volunteer or may have been covered under another retirement system from which service credit maybe transferred to FERS, such as CSRS, CSRS-‐Offset, Foreign Service, Federal Reserve, or CIARDS)

The individual on December 31, 2012, was not covered under FERS and was not performing civilian service which is creditable or potentially creditable service under FERS, but as of December 31, 2012, had performed at least five years of civilian service creditable or potentially creditable under FERS

7

Retirement Coverage Determination

• Early Career – 25 + years to retirement Contribute to TSP Enroll in benefits (FEHB, FEGLI, FEDVIP, FSA) Pay civilian deposit Pay military deposit

• Mid Career – 10-24 years to retirement Adjust benefits based on life situation Review level of TSP participation & allocation between

the funds

8

Retirement Planning

• Late Career: – Less than 10 years prior to retirement

Use calculators in EBIS to get a rough estimate of annuity

Adjust TSP contributions & other savings based on results from calculators

- Five years to retirement Verify eligibility to continue FEHB & FEGLI into

retirement Request a retirement estimate from ABC

Retirement Planning

9

10

FERS, FERS-RAE, FERS-FRAE Retirement

FERS is a 3-tiered retirement systemFERS annuity is the smallest component

TSP WILL make up the largest portion of your total retirement

FERS Annuity

Social Security

Thrift Savings Plan

1

Used to determine retirement eligibility and to calculate retirement annuity

May not be the same as your Leave SCD (SCD that appears on your SF 50 & LES)

Not all service that is creditable for leave is creditable for retirement

RETIREMENT SERVICE COMPUTATION DATE (RSCD)

1

Examples of service that is creditable for leave but not for retirement:

Non-Appropriated Fund (NAF) service on a temporary appointment

For retired military, campaign or combat service if retired military pay is not being waived

Military service for which deposit has not been paid

Non Deduction Service performed on/after 01-01-89

RETIREMENT SERVICE COMPUTATION DATE (RSCD)

13

Military/Civilian Deposit

14

FERS Military Service on/after

01-01-57

FERS Post-56 Military Service

Amount of Deposit: 3 % of basic pay earned + interest

(Interest will vary)

Must Pay to Receive Credit for Retirement Eligibility and Annuity

Computation – FERS only

15

• Civilian service not covered by retirement deductions (typically service in which you only paid into Social Security)

• Typically temporary or indefinite service

• Effect of deposit service upon retirement annuity computation depends upon retirement plan

• Amount of deposit:

1.3% of earnings + interest (3% of stipend for Peace Corps and VISTA)

Interest will vary by the date the service was performed

Civilian Deposit Service

16

FERSRefunded Service

FERS Service for which retirement contributions were refunded to you

FERS REDEPOSIT IS NOW ALLOWED!

Note:

FERS with CSRS component*, CSRS rules apply

FERS with no CSRS component*, FERS rules apply

5 Years creditable CSRS or potentially creditable CSRS service and elected FERS

17

How To Pay A CivilianDeposit Or Redeposit

• Complete front page of SF 3108, Application to Make Service Credit Payment and send or fax to the ABC-C

• ABC-C will calculate an estimated deposit/redeposit amount and mail to OPM

• OPM will notify you of final deposit/redeposit amount and payment procedures

• OPM will send you a receipt and new balance each time payment is made

• Ensure “Payment in Full” notice is filed in OPF

18

YEAR RATE YEAR RATE YEAR RATE

2014 1.625% 2003 5% 1992 8.125%

2013 1.625% 2002 5.5% 1991 8.625%

2012 2.25% 2001 6.375% 1990 8.75%

2011 2.75% 2000 5.875% 1989 9.125%

2010 3.125% 1999 5.75% 1988 9.125%

2009 3.875% 1998 6.75% 1987 8.375%

2008 4.75% 1997 6.875% 1986 9%

2007 4.875% 1996 6.875% 1985 11.125%

2006 4.125% 1995 7% 1984 13%

2005 4.375% 1994 6.25% 1948 - 1984

3%

2004 3.875% 1993 7.125% Before 1948

4%

INTEREST RATES

2015 2.00%

Optional Retirement

Voluntary Early Retirement Authority (VERA)

Discontinued Service Retirement (DSR)

Military Reserve Technician (MRT)

Deferred Retirement

Disability Retirement

Public Law 97-253 (National Guard dual –status disability retirement)

19

TYPES OF RETIREMENTS

Eligibility requirements for Optional Retirement:• Minimum Retirement Age (MRA) with 30 years of

service• Age 60 with 20 years of service• Age 62 with 5 years of service

• MRA with at least 10 years but less than 30 years of service

5% reduction for each year under age 62 (permanent reduction)

Not entitled to annuity supplement

• NOTE: Must have at least 5 years of creditable civilian service Military service or sick leave may not be used to reach the 5 year rule

20

FERS Optional Retirement

21

MINIMUM RETIREMENT AGEIF YEAR OF THE MINIMUM

BIRTH IS... RETIREMENT AGE IS...

BEFORE 1948 551948 55 & 2 MONTHS1949 55 & 4 MONTHS1950 55 & 6 MONTHS1951 55 & 8 MONTHS1952 55 & 10 MONTHS1953-1964 561965 56 & 2 MONTHS1966 56 & 4 MONTHS1967 56 & 6 MONTHS1968 56 & 8 MONTHS1969 56 & 10 MONTHS1970 & AFTER 57

NOTE: SINCE EMPLOYEES BORN IN 1948 DID NOT REACH AGE 55UNTIL 2003, THE MRA UNTIL THAT DATE IS 55

Purpose:To Allow Eligible Employees Not Facing

Involuntary Separation to Retire Early Creating Vacancies That Can be Filled by Technicians Who Would Otherwise be Separated or Down Graded

22

Voluntary Early Retirement Authority (VERA)

• Eligibility: Separation must be involuntary and not removal for misconduct or delinquency.

• Examples: Lose civilian position due to RIF, Reorganization, etc.

• Age and Service Requirements: Age 50 with 20 years of service or any age with 25 years of service.

• No supplement until MRA.

23

Discontinued Service Retirement (DSR)

• Unique to FERS• Involuntary separation is based on loss of

military membership only (not for cause).• Eligibility to receive the FERS annuity

supplement is immediate even if not at MRA.• Age and service requirements are based on date

of hire as follows:

24

Military Reserve Technician (MRT)

First hired on/before 10 February 1996• Age 50 with 25 years of creditable “Federal” service. • Prior Title 10 active duty and/or temporary service performed

prior to 1/1/1989 for which the employee completed a service deposit can be used to achieve the 25 years of creditable “Federal” service. **

First hired after 10 February 1996• Age 50 with 20 years of creditable “military technician” service,

or Any age with 25 years of creditable “military technician” service.

**Other service creditable under FERS as well as prior Title 10 military service deposits cannot be used to achieve the minimum “military technician” years of service.

Military Reserve Technician(MRT)

25

Eligibility: At least 5 years of creditable federal civilian service.

Retirement becomes available at age 62. Not eligible to carry health or life insurance

through retirement.Sick leave is not credited.

26

Deferred Retirement

27

Disability Retirement-FERS

• To qualify for a disability retirement, you must have at least 18 months of creditable civilian service

• To apply, you must complete regular retirement forms as well as the Disability Retirement forms

• You are required to apply for Social Security• It can take OPM 2-6 months to approve or

disapprove your request• Disability retirement annuities ARE subject to

Federal taxes

P.L. 97-253 guarantees a disability retirement to National Guard technicians (NGT) who lose their military membership due to medical disqualification.

NGT receive 60% the first year and 40% each year after until it is recalculated at age 62 (FERS).

Note: NGT are not eligible for disability under P.L. 97-253 if they meet the age and service requirements of the Discontinued Service Retirement-MRT.

28

Disability – National Guard Technician (P.L. 97-253)

29

FERS Annuity SupplementAn estimated amount of Social Security benefits earned during FERS service

Benefit paid until age 62 to certain FERS employees who retire before age 62 and are entitled to an immediate annuity

Eligibility: Has at least 1 calendar year of

FERS service AND Retires with an immediate

annuity At or after MRA with 30 years At age 60 with 20 years of service At or after MRA under Early/DSR retirement provisions Under Special Provisions

(i.e., FF, LEO, etc.)

Individuals NOT eligible for annuity supplement:

Disability Retiree MRA +10 provision Deferred Annuity Retiring at age 62 or older CSRS Employees

Duration of annuity supplement:Payable through the earlier of the following dates:Last day of the month you become age 62 OR;Last day of the month before the first month you are entitled to Social Security benefits.

Paid to a technician who is involuntarily separated from Federal ‘civilian employment’ other than for inefficiency, misconduct, or delinquency

Resigns after receiving a written general RIF notice announcing abolishment or transfer of all positions within the competitive area or a specific notice proposing his/her removal

30

Severance Pay

May be paid to:

• Permanent or indefinite technicians (if preceded by qualifying period) on full time or part time work schedule

Severance is paid at the same pay intervals as when the technician was employed

31

Severance Pay

Amount of severance

There is a 52 week lifetime limit on receipt of severance pay

One weeks’ pay for every year of service up to 10

Two weeks’ pay for every year after 1010% adjustment for each year over age 40

32

Severance Pay

33

Death-In-Service• If you die while still an active employee, your survivor MAY be entitled to death benefits

• In the event of a death, survivors need to contact the HRO

• SF 1152 - Designation of Beneficiary, Unpaid Compensation of Deceased Civilian Employee

• SF 3102 - Designation of Beneficiary, Federal Employees Retirement System (FERS)

• SF 2823 - Designation of Beneficiary, Federal Employees' Group Life Insurance Program

• TSP-3 - Designation of Beneficiary, Thrift Savings Plan (TSP)

34

Beneficiary Forms

Questions

35

Mrs. Alma Pennington (518) 786-4725