Federal Employee Retirement Benefits
There are several programs that federal employee retirees can take advantage of; however, if you’re not careful with your decisions, you can create more problems for you and your dependents in the future.
With the help of a qualified benefit specialist, you can make the right choice. It’s up to you to choose among TSP, FERS, CSRS, and many others.
Federal Employee Retirement Benefits – The Options
There are advantages of being a federal employee. Once you become part of the federal government and you’re nearing retirement, you should inquire about the federal employee retirement benefits. The FERS and CSRS are quite generous but you should be aware that this will cost you a lot of money. The TSP or Thrift Savings Plan is exclusively for federal employees. The plan is basically for retirement savings and investment; through the plan, federal employees can enjoy retirement income. It is very much similar to the 401(k) plans offered by private corporations. The plan is usually given together with the FERS and CSRS.
The plan offers tax deferral, loan program, in-service withdrawals, transfer of eligible savings to the TSP account, options in post-separation, and a choice of additional life cycle and five investment funds. The contribution changes annually but it should not exceed $16,500. Aside from TSP, you can also enjoy the Social Security benefits, basic annuity, and other options in insurance. You have the right to elect your retirement benefit features and in order to make the right decision, try to consult a benefits specialist or the program office concerned so that clarifications can be made.
Federal Employee Retirement Benefits – Choosing the Right Program
Being extra careful in your decisions is very important so that you can take advantage of the retirement benefits and you won’t jeopardize your family’s well being. In appropriate elections or decisions can cause problems in the future but you can avoid this situation by educating yourself in the available options. Did you know that FERS retirees can collect their Social Security and get a supplement should they decide to retire early? If you exceed the minimum retirement age (at least 30 years service), you’re entitled to receive the Special Retirement Supplement and this is going to be paid in annuity until you’ve reached 62 years; by then, you can already enjoy the Social Security benefits. Monthly benefits will depend on your average earnings, family composition, and the CPI or consumer price index.
Under the CSRS, civil service retirees are entitled to their Social Security but certain circumstances are going to be considered. Retirees who worked for ten years can get benefits by the age of 62 but the benefits are going to be reduced every month until age 65. These things can be complicated and so many federal employees get confused. If you really want to enjoy the retirement benefits, you should inquire at an early age. That way, you can already save for you and your dependent’s future while you’re still young.
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