RETIREMENTMrs. Noelani M. A. DE SilvaHuman Resources SpecialistEmployee Benefits(808) [email protected]


Retirement PlanningYearsBenefitsTSPDepositsEarly Career25 EnrollMid Career10-24Review and AdjustLate Career 10Review and AdjustImminent 5Review and AdjustEnroll andadjustReview andAdjustReview andadjustReview andMaximizePay Civ andmilitaryContinue topayContinue topayContinue topayEstimatesUse on linecalculatorsRequest fromABC-C33

Civil Service Retirement System (CSRS)Applies to New employees first hired in a covered position prior to 1-JAN1984 Oldest of the retirement systems Employees and government each contribute 7% of employee’sbasic annual pay Employees may also contribute an unmatched amount to ThriftSavings Plan do not get government matching contributions44

Civil Service Retirement System-Interim(CSRS-Interim)Applies to Employees first hired on/after 1-JAN-1984 and certain rehires Reduced CSRS contribution rate of 1.3% Contributes to Social Security1-JAN-1987 CSRS Interim Coverage change CSRS -OffsetFERS5 years of civilian serviceLess than 5 years of civilian service55

Civil Service Retirement System - ComponentApplies to If you have civilian service prior to your election of FERS and The service was subject to CSRS retirement deductions, or Social Securitydeductions (but not both) and The total of these 2 types of service is 5 years or more This period of service is called a CSRS component, and that portion of yourretirement annuity, or civilian deposit, etc. will be calculated using CSRS rules66

Federal Employee’s Retirement System (FERS)Only retirement system available to New employees hired on/after 1 Jan 1987, and Prior service employees after a break of over 365 days – but not eligible for CSRSOffsetCONTRIBUTIONSRETIREMENT SYSTEMEMPLOYEEGOVERNMENTFERS0.8%; Social Security16.9%; Social SecurityFERS-RAE3.1%; Social Security15.0%; Social SecurityFERS-FRAE4.4%; Social Security15.0%; Social Security77

Federal Employee’s Retirement System (FERS) Contributes to Social SecurityNew & rehired FERS automatically contribute 3% to TSPNew employees are automatically enrolled in the Life Cycle Funds Employees may contribute up to IRS Limit ( 19,000 for 2019) to TSP; receiveagency matching 5% if you contribute at least 5% of your salary. MAXIMIZE yourinvestment!!! Automatic 1% contribution regardless of TSP contribution rate First 3% of your contributions are matched dollar-for-dollar Next 2% will be matched at 50 cents to the dollar88

Federal Employee’s Retirement System (FERS)FERS is a 3-tiered retirement systemFERSAnnuityFERS annuity is the smallest componentSocial SecurityPossible FERS Annuity SupplementThrift Savings PlanTSP WILL make up thelargest portion of yourtotal retirement99

Types of Retirement Optional Retirement Voluntary Early Retirement Authority (VERA) Discontinued Service Retirement (DSR)o Military Reserve Technician (MRT) Deferred Retirement Disability Retirement Public Law 97-253 (National Guard dual-statusdisability retirement)1010

General Eligibility Requirements Have at least 5 years of creditable civilian service with the Federalgovernment Meet Minimum Retirement Age (MRA) Must separate from a position subject to FERS coverage1111

Minimum Retirement Age (MRA)If year of birth is The MRA is Before 194855194855 & 2 Months194955 & 4 Months195055 & 6 Months195155 & 8 Months195255 & 10 Months1953-196456196556 & 2 Months196656 & 4 Months196756 & 6 Months196856 & 8 Months196956 & 10 Months1970 & After571212

Optional Retirement(Voluntary)AgeService RequirementsMRA30 years creditable service6020 years creditable service625 years creditable serviceAGEMRA (MRA 10)5% PERMANENTReductionAnnuity SupplementService Requirements10 years creditable service (5 yearscivilian)Each year under the age of 62NOT Entitled Annuity accrues the first day of following month of your retirement.1313

MRA 10Postponing Retirement Benefits You can reduce or eliminate the 5% age reduction by postponing thecommencing date of your MRA 10 FEHB and FEGLI coverage may be reinstated prospectively if at time ofseparation you were eligible to continue coverage into retirement Sick leave is creditable in the computation of the annuity Must elect to have annuity commence on any day after the first day of anymonth following separation up to and including the second day before turningage 621414

Early RetirementTwo types of early retirement options for FERS employees- Voluntary Early Retirement Authority (VERA)- Discontinued Service Retirement (DSR) (T5 NOT Eligible)1616

Voluntary Early Retirement Authority(VERA)AgeService Requirements5020 years creditable service*Any Age25 years creditable service* Agency / Installation must approve No age reduction under FERS for early retirement If you have a CSRS component, CSRS portion of annuity will be reduced 2%each full year under age 55 You will receive an annuity supplement if: You retire at or after your MRA If not, you will receive it once you reach your MRA* Must include 5 years of creditable civilian service1717

Discontinued Service Retirement(DSR)AgeService Requirements5020 years creditable serviceAny Age25 years creditable service Must receive a specific written notice of a proposed involuntary separation fromyour Agency/Installation No age reduction under FERS for early retirement If you have a CSRS component, CSRS portion of annuity will be reduced 2%each full year under age 55 Annuity starts day after separation You will receive an annuity supplement if: You retire at or after your MRA If not, you will receive it once you reach your MRA Not eligible for VSIP or severance pay1818

Military Reserve Technician (MRT) T5 NOT Eligible Involuntary separation is based on loss of military membership (not for cause). Eligible to receive immediate FERS annuity supplement regardless of MRA.Age50First hired on/before 10-FEB-1996Service Requirements25 years of creditable “Federal” service- Title 10 AD/temp service prior to 1-JAN-1989: service deposit usedto achieve 25 years of creditable “Federal” service.AgeFirst hired after 10-FEB-1996Service Requirements5020 years of creditable “military technician” serviceAny Age25 years of creditable “military technician” service Military Technician service – time earned while in dual status1919

Deferred RetirementAnnuity for which an employee attains eligibility at a future date after separatingfrom federal serviceAge62Service Requirements5 years creditable civilian serviceMRA10 years creditable serviceMRA30 years of service6020 years of service 5% age reduction for employees with less than 30 years of service and applies for a deferred annuityat MRA FEHB and FEGLI will not be reinstated at the time your annuity commences. Your application forretirement is sent directly to OPM.NOTE: NOT eligible for FERS Annuity Supplement***Defer: Not eligible to retire vs. Post Pone: Eligible to retire but choose to hold off***2020

FERS Annuity Supplement An estimated amount of Social Security benefits earned during FERS service Benefits paid until age 62 to certain FERS employee who retire before age 62 and areentitled to an immediate annuity 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 Securitybenefits2121

FERS Annuity Supplement (cont.)Eligibility:Not eligible: Has at least 1 calendar year of FERSservice AND Disability retiree Retires with an immediate annuity Deferred At or after MRA under VERA / DSR Retiring at age 62 or older Under Special Provisions (i.e. MRT, FF,LEO, ATC) CSRS MRA 102222

FERS Annuity Supplement (cont.)Supplement is tested for earnings above the Social Security exempt amount ( 17,640for 2019) Earnings include wages and self-employment income Income from severance pay (including VSIP), pensions, savings and investmentsare NOT subject to the earnings test. Annuity supplement will be offset by 1 for every 2 over this amount that isearned in 20172323

High-3 Average Salary Weighted average of highest 3 years of basic pay (includinglocality pay/local market supplement) Must be 3 consecutive years(Usually the last 3 years) Is the highest salary, not the highest grade Normally, the beginning date of the 3rd year period is determinedby subtracting 3 years from the date of retirement2424

Disability Retirement Disability – Unable to render useful & efficient service because of disease orinjuryAGEAny AgeService Requirements18 months creditable civilian service Must be in a position covered by FERS Disability annuity IS subject to Federal tax2525

Special NG Disability RetirementProvision Public Law 97-253T5 NOT EligibleNG technician may be eligible if: Involuntarily separated due to medical disqualification Not found by OPM as meeting criteria for a “regular” disability retirement Not appointed to another Federal position Not declined a reasonable job offer Not eligible for a Military Reserve Technician (MRT) retirement2626

Disability Annuity AmountIf under age 62 at separation: First 12 Months: 60% x high 3 salary – 100% of SocialSecurity Benefits After 12 Months: 40% x high 3 salary – 60% of SocialSecurity Benefits Disability annuity is recomputed at age 62to an amount that represents the annuityyou would have received if you hadcontinued working until the day beforeyour 62nd birthday and then retired undernon-disability provisionsYou will receive an “earned annuity”based upon the general FERScomputation formula as opposed todisability calculation if: You are 62 years old or older Meet the age and servicerequirements for regular, unreducedimmediate retirement (MRA with 30years, age 60 with 20 years)2727

Designation Of BeneficiaryBeneficiary Forms:Order of Precedence: SF 1152 (Unpaid Comp) SF 2823 (FEGLI) SF 3102 (FERS) TSP 3 (TSP) Court OrderDesignation of BeneficiaryWidow or WidowerChildren (and/or descendants ofdeceased children)ParentsExecutor or Administrator of EstateNext of Kin2828

Retirement Process5 years prior to retirement eligibility: Contact the Army Benefits Center-Civilian (ABC-C) for retirement estimate &information Call HRO/ABC-C with questions on retirement estimate180 days prior to retirement: Complete the eRetirement forms on EBIS website Call HRO/ABC-C for help with the retirement forms90-120 days prior to retirement: HRO conduct retirement review Mail original retirement forms to ABC-C Maintain personal copy Provide good retirement address & contact information2929

Retirement Process (Cont.)30-60 days prior to retirement: Retirement package assigned tospecialistABC-C retirement specialist: Verifies required forms and documents Processes retirement package Provides final retirement counseling Retirement package is forwarded toDFAS2 -4 weeks after retirement: Final paycheck is received Lump sum annual leave is paid VSIP payments if applicableApprox. 8 weeks after retirement: Receive 1st INTERIM payment Receive letter from OPM with CSA* number*CSA: Civil Service Annuitant Number- CSA & password - log on to Print monthly statement- “retired MyPay”3030

Additional InformationCONTACT THE ABC-C Toll Free 1-877-276-9287 FAX 1-785-240-6153Select:1 Army Civilian2 DCMA Civilian3 National Guard4 Non-Appropriated Fund or Uniformed ServiceMember Specialists are available from 6 am –5 pm CT(Monday through Friday except National Holidays)Website: Address: 305 Marshall Avenue31Ft. Riley, KS 6644231

References5 CFR 890 (FEHB) CFR Part 894 (FEDVIP) CFR Part 875 (FLTCIP) HandbookCSRS/FERS Handbook5 USC Chapter 89A & 89B (FEHB)5 USC Chapter 905 CFR, Chapter 1 (CSRS/FERS)5 USC 87 (FEGLI)5 USC Chapter 84 (CSRS/FERS)5 CFR 870 (FEGLI)DODI 1400.25 Vol 870 (FEGLI)Benefits Administration Letters (BALs) - OPM3232


30-60 days prior to retirement: Retirement package assigned to specialist ABC-C retirement specialist: Verifies required forms and documents Processes retirement package Provides final retirement counseling Retirement package is forwarded to DFAS 2 -4 weeks after retirement