Military Folks: Pension and Tax Deferred

[Greg V]

While the "real" method for calculating the FERS Annuity Supplement is pretty complex, the following formula will get you pretty close. For purposes of this stipend, a "full career" is considered to be 40 years. So:

(Actual FERS time/40) X (SS annuity at age 62) = FERS Annuity Supplement

In my case, the result was within $10 of the official, OPM calculated, amount. Hope this helps with your planning.

 

[Neecy]

While the "real" method for calculating the FERS Annuity Supplement is pretty complex, the following formula will get you pretty close. For purposes of this stipend, a "full career" is considered to be 40 years. So:

(Actual FERS time/40) X (SS annuity at age 62) = FERS Annuity Supplement

In my case, the result was within $10 of the official, OPM calculated, amount. Hope this helps with your planning.

Thanks! On second thought, staying until 62 will increase my pension by nearly $15,000 a year.

 

[Greg V]

BTW, I'm in the recoupment situation as well.

DFAS is required to give you the numbers with 90 days notice before actually reducing your military retirement check. That allows a person with a hardship to request a smaller than 40% reduction.

In my case, I just got a revised RAS with the reduction...no proposed numbers, etc in advance...and called DFAS. I wanted to be sure our amounts agreed, not change the percentage. They realized I did not get the required 90 days notice and pushed back the beginning of recoupment by 3 months.

Just info from my experience in case you have something similar happen.

 

[Neecy]

BTW, I'm in the recoupment situation as well.

DFAS is required to give you the numbers with 90 days notice before actually reducing your military retirement check. That allows a person with a hardship to request a smaller than 40% reduction.

In my case, I just got a revised RAS with the reduction...no proposed numbers, etc in advance...and called DFAS. I wanted to be sure our amounts agreed, not change the percentage. They realized I did not get the required 90 days notice and pushed back the beginning of recoupment by 3 months.

Just info from my experience in case you have something similar happen.

OK, thanks!