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Old 10-21-2013, 02:19 PM   #41
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As a FED employee under FERS, I had no choice but participate in SS. However, when I retire at 56 SS will will pay me half of my age 62 SS benefit until I reach age 62. I can then elect to continue receiving SS benefits at the 62 age rate or defer to a later age. I still would have rather been able to keep my 7% and invested it myself.
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Old 10-21-2013, 04:10 PM   #42
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As a FED employee under FERS, I had no choice but participate in SS. However, when I retire at 56 SS will will pay me half of my age 62 SS benefit until I reach age 62. I can then elect to continue receiving SS benefits at the 62 age rate or defer to a later age. I still would have rather been able to keep my 7% and invested it myself.
That is a new one to me, I didn't think you could collect any SS prior to age 62.
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Old 10-21-2013, 04:10 PM   #43
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gunnychapman- I am just in the process of getting the money from 56 to 62 as well (3 months late at this point). It is not a SS program however. It is a FERS annuity that is based on SS earnings while you were working for the Govt. I know there are a lot of people who would rather have had the money to invest themselves.....but that is the problem. MOST people don't have the discipline to invest wisely and keep their fingers off the money. The SS system is there so that they WILL have at least some money coming in whether they are foolish with their money or not.
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Old 10-21-2013, 06:37 PM   #44
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My older sister started working for the State of Louisiana in the mid-1960s and did not have to pay into social security. She worked there for 40 years and given her low wages and lack of interest in investing, it might have been better for her retirement if she had paid into social security. But she died at age 60 so is a moot point.I began working for the federal government in 1985 so was under FERS and had to pay social security. Would have preferred to be under the previous CSRS system where the pension is twice as much but you do not pay into or receive social security. The difference between the larger CSRS pension and what I will get under social security is about $20K a year.
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Old 10-21-2013, 08:48 PM   #45
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That is a new one to me, I didn't think you could collect any SS prior to age 62.
Actually it is not a SS payment but a FERS supplement based on 50 percent of one's SS benefit at 62. Didn't mean to confuse.
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Old 10-21-2013, 09:51 PM   #46
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gunny.....still not quite right. Hard to figure out.....my estimate at 62 is $1334, hoping to get 700-800 a month once they get done getting their butts in gear. Just type into Google FERS supplement and you can get the REAL details and can figure out the approx payouts. Hope you aren't just taking other people's opinions for this like FOX news.....do the research.
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Old 10-22-2013, 12:27 AM   #47
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The FERS supplement is prorated based on years of creditable service. Divide years of federal service (does not include sick leave applied to service years) by 40 and multiply by expected SS at age 62. So if your years of service at retirement is 30 and your expected SS at age 62 is $1000 a month, your supplement would be $750 a month. There is also a rather complicated formula hidden away in some retirement handbook but this formula is a good estimate.
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Old 10-23-2013, 09:29 PM   #48
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The FERS supplement is prorated based on years of creditable service. Divide years of federal service (does not include sick leave applied to service years) by 40 and multiply by expected SS at age 62. So if your years of service at retirement is 30 and your expected SS at age 62 is $1000 a month, your supplement would be $750 a month. There is also a rather complicated formula hidden away in some retirement handbook but this formula is a good estimate.
If you get the FERS supplement, does it affect your FERS annuity amount once you reach age 62? I am looking into this for DW who is FERS. Mega-corp had a similar benefit which reduced the final pension payment, which seems fair. Otherwise it's just free money. The final pension reduction was not a huge amount.
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Old 10-23-2013, 11:27 PM   #49
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If you get the FERS supplement, does it affect your FERS annuity amount once you reach age 62? I am looking into this for DW who is FERS. Mega-corp had a similar benefit which reduced the final pension payment, which seems fair. Otherwise it's just free money. The final pension reduction was not a huge amount.
No, the FERS supplement has no effect on the FERS pension payment. The supplement is "free money" if you want to call it that.

Under the older federal retirement plan, CSRS, feds do not get social security but their pension annuity is twice as large as the FERS pension. As FERS retirees do not have the larger annuity of CSRS, social security is a more substantial part of their retirement (e.g., they describe it as a 3 legged stool with the FERS annuity, social security, and a 401K called TSP). FERS feds can retire as early as age 56 so the FERS supplement is a way of "tiding" those retirees over until they reach 62 and are eligible for social security. Similar to social security, the FERS supplement is reduced if the retiree chooses to work another job after federal retirement.

Now if you work in federal government until at least age 62, the multiplier for the pension is slightly increased, e.g., for 30 years of service you would get an additional 3% of the average of your high three year salary. Then of course, one would not get any FERS supplement but would get a higher pension.
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Old 11-11-2013, 08:11 PM   #50
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........Now if you work in federal government until at least age 62, the multiplier for the pension is slightly increased, e.g., for 30 years of service you would get an additional 3% of the average of your high three year salary. Then of course, one would not get any FERS supplement but would get a higher pension.
Thanks, ABQ.......
I looked into this last bit and I believe it requires retirement at age 62 or above with a minimum of 30 years service.....and I think it is structured as a 10% bonus (1.1% x yrs of service instead of 1.0). Doesn't apply to DW.
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Old 11-12-2013, 11:03 AM   #51
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Thanks, ABQ.......
I looked into this last bit and I believe it requires retirement at age 62 or above with a minimum of 30 years service.....and I think it is structured as a 10% bonus (1.1% x yrs of service instead of 1.0). Doesn't apply to DW.
The 1.1 multiplier applies at "age 62 or older at separation with 20 or more years of service." The OPM website link below discusses computation.

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Old 11-12-2013, 11:21 PM   #52
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The 1.1 multiplier applies at "age 62 or older at separation with 20 or more years of service." The OPM website link below discusses computation.

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Thanks again for the correction. 20yrs vs. 30 is a big difference for us. DW might make it to 20 but definitely won't make 30.
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