2014 retired FED and going to retire FEDs...

[Cassie]

Interesting on the check. Was DFAS your pay processing center when you worked?

I was told by my agency that after Pay Period 8, which I believe ended April 5, your former agency pay center processes a 2014 COLA you are owed for the lump sum annual leave payment received after the 1% took effect, i.e., Jan 12, 2014.

Thanks for the information Kaufmanrider. & yes DFAS was the processing when I was working.

 

[Federal LEO]

I'm semi retiring from the FEDS on June 30, 2014, at age 51 (LEO FERS). In late August I start a second career as a high school teacher in my small town. I look forward to teaching and having 16 weeks vacation annually, plus 8 paid school holidays! The $35,000 beginning salary will keep me from touching my TSP account until I reach my planned full retirement date at age 56.

I would lose my FERS Supplement of approximately $13,260 if I continue teaching after age 56 and I'm using that as my excuse to friends and relatives who question my early retirement in 2018.

In know life's too short and unpredictable to worry about retiring too early. Part of me is ready now, but I'm comfortable with teaching for awhile to satisfy my 5% financial fears.

 

[martyb]

Congrats Federal Leo! Also, I don't consider Tyler all that small . I come over there fairly often.

 

[Federal LEO]

Congrats Federal Leo! Also, I don't consider Tyler all that small . I come over there fairly often.

Lindale actually. Thanks.

 

[REWahoo]

Lindale actually. Thanks.

Small world. A number of my relatives are buried in the Lindale cemetery.

 

[martyb]

Lindale actually. Thanks.

Ok, yeah, Lindale qualifies as smaller. I fish Lake Fork now & then, & have been in or through most all of the little towns in that whole area from time to time. My current fed job is in Shreveport, but I travel to defense contractors in Marshall, Longview, Kilgore, Tyler, Alto etc. in east Texas pretty much weekly, and also to a few locations in Louisiana as well. 2 months to go, & I'll be doing this:

 

[Kaufmanrider]

Lindale actually. Thanks.

Cool, I just retired, 49, Federal LEO-FERS. I live just between Forney and Terrell. That's 25 miles east of Dallas, Texas, for those unfamiliar with Texas.

I was comfortable with the projected income from FERS and the Supplement for retirement. Agency estimates were very close to what I actually received from OPM. My monthly expenses would be paid without having to touch my TSP. Of course we'd have to live on a budget.

The wife and I recently decided to take monthly distributions from my Rolled over IRA from my TSP so we can expand our budget and add some international travel yearly to our budgeted domestic travel plans and have cash left over. We lived on a budget for years raising the kids, we decided now's it's our time to enjoy life while we are young and in good health.

Personally, I wouldn't have retired if I had to get another job just to pay the bills. I would have worked for the Feds and suffered a few years more.

 

[Redbugdave]

Small world. A number of my relatives are buried in the Lindale cemetery.

That's really neat. You never know...you and Leo may be related and not know it. All you guys in Texas...and Marty, too...should get together and have coffee sometime. That would be neat.

Congress has been talking about taking away that FERS Suppliment to trim the budget. Have any of you heard any on that? I don't think it would affect retirees. though.

 

[Kaufmanrider]

That's really neat. You never know...you and Leo may be related and not know it. All you guys in Texas...and Marty, too...should get together and have coffee sometime. That would be neat.

Congress has been talking about taking away that FERS Suppliment to trim the budget. Have any of you heard any on that? I don't think it would affect retirees. though.

I'd be game for coffee or lunch sometime in East Texas. Pick a nice day so I can ride my motorcycle.

Redbugdave, removing the FERS Supplement has come up the last few years. I believe LEO/FF/ATC would keep it as they have a mandatory retirement age of 57, 56 for ATC.

I assume it would apply to new hires if it is enacted, but of course they could always apply it to folks working. I think being retired it would be much more difficult to mess with our benefits. However

I'll have to read my new NARFE (National Active and Retired Federal Employee Association) monthly magazine to get the status. That is one group I thought it was good to belong too. Gotta have a group in DC that fights for us retiree's so I can keep what we have earned. I might even see about joining a local chapter.

 

[Cassie]

I see we're getting a 1.7% increase for 2015.....and I think health insurance is going up about 3%

 

[Tadpole]

I see we're getting a 1.7% increase for 2015.....and I think health insurance is going up about 3%

In my case that 3% translates to 0.5% of pension. (CSRS cohorts would be even less.)

Not that I wouldn't prefer a 1.7% for HI.

 

[martyb]

Since I retired in July this year, I'll only be getting 1/2 of that 1.7% COLA. However, I'm retired under CSRS, so I guess that kind of balances things out, vs. being retired under FERS. My health insurance is going up a little more than 3%, so basically, I'll stay about where I am now, financially speaking.

 

[Kaufmanrider]

Since I retired in July this year, I'll only be getting 1/2 of that 1.7% COLA. However, I'm retired under CSRS, so I guess that kind of balances things out, vs. being retired under FERS. My health insurance is going up a little more than 3%, so basically, I'll stay about where I am now, financially speaking.

I figure I'll get about 1.45% because I retired in January at 49. Wish I was CSRS, but I did retire under FERS Special so I get COLA annually.

 

[Kaufmanrider]

Since I retired in July this year, I'll only be getting 1/2 of that 1.7% COLA. However, I'm retired under CSRS, so I guess that kind of balances things out, vs. being retired under FERS. My health insurance is going up a little more than 3%, so basically, I'll stay about where I am now, financially speaking.

I sat down last night and did some calculations between CSRS and FERS. I was surprised with my results. My numbers apply to FERS Special (LE/FF/ATF) as we get a higher calculation for our first 20 years, i.e., 1.7% per year then regular FERS. I had 32 years service for my calculation.

If I retired CSRS, my retirement would equal 74% of my high three salary, 50% first 20 years, plus 24% (2% per year after 20). This is for LE/FF/ATF under CSRS.

Using my three legs of FERS (Annuity, Special Supplement, TSP) my retirement currently equals 75% of my high three salary. My annuity is 46%, the special supplement and TSP withdrawals make up the other 29%.

If I was non-law enforcement CSRS would have been 60.25% and FERS would have been 61% (32% annuity plus 29% for special supplement/TSP).

When I turn 63, my Special Supplement ends, but I am eligible for Social Security which will be much larger than my special supplement.

 

[Redbugdave]

Hi Kaufman and Marty!

I am regular FERS and will not get any COLA till 62. That's OK I guess, since there's nothing I can do about that. My net worth has increased since I have retired even after getting my monthly withdrawals out of TSP. I am way ahead under FERS vs CSRS as to my retirement "salary".

I have been retired about 10 months and love it! What I used to do seems like a distant dream, now. I am in the woods a good bit and doing the things I like without interruption.

Life is Good!

 

[W2R]

Hi, all! I'm FERS too, and retired in 2009. The TSP has been wonderful to have, I agree, and I am taking equal monthly payments from it.

My FERS pension is not very big, but I sure do welcome this 1.7% increase! The amount of increase is greater than the increase in BCBS Standard this year, so I am ahead, overall.

It's nice that some other retired feds are on the forum.

 

[zinger1457]

I sat down last night and did some calculations between CSRS and FERS. I was surprised with my results.

I'm also a FERS retiree and did similar calculations a few years ago after hearing people say how much better CSRS was compared to FERS and I came up with similar findings as you did. With my TSP investment choices (stock funds) I came out better under FERS then I would have under CSRS. I've always maxed out my TSP contributions but when doing this comparison I only used that portion of my TSP and FERS annuity contributions that matched the required CSRS contribution. If I had invested my TSP contributions in the G fund then CSRS would have come out ahead. Unfortunately there are many under FERS who don't take advantage of the TSP portion, thinking that the FERS annuity and SS will be enough, that's a big mistake IMO.

 

[martyb]

I wasn't a high-grade fed, just retired at GS-11, under CSRS. For the last few years, I was maxing my TSP. That, of course meant my take-home pay was fairly low during those years. However, that's the level of income we got used to living on and it wasn't a problem. Wife works but only earns $24,000. She puts 30% of that into her 401k. Having said all that...my net CSRS retirement check per month is around $800 more than my pay when I was working. Wife is still working. I have not needed to take any TSP withdrawals yet. I feel like we got a raise when I retired. My net take-home is considerably more than my net take-home while working. We bought our retirement home a year ago, & just refinanced it last week at 3.5% fixed, which reduced the payment by $100 per month. I guess it all depends on what level of income you're used to working with. Currently our combined take-home pay (after all insurance incl. health, life & dental, taxes, survivor's benefits) is around $47,000 yr. That's pretty comfortable to us, and we can increase it by TSP withdrawals if we want/need to. In 3 yrs, wife will retire & I'll begin drawing my military retirement, which will replace her income almost exactly. At that time I will also have the option of going onto Tricare, & suspending current health insurance. Not sure I'll go that route but will consider it. In 5 yrs, I'll begin drawing around $3000 per yr SS (every little bit helps) and 3 yrs after that, wife's SS kicks in. We aren't wealthy, but I feel fairly secure with the 2 COLA'd pensions + TSP + her 401k. I've never done the math to see how I would fair under FERS vs. CSRS. When I was offered to switch to FERS, I figured it most likely was a better deal for the govt. than for me. Also, since I wasn't in FERS from the beginning, there were too many years of TSP matching that I had already missed out on.

 

[Cassie]

I love that my CSRS covers all living expenses plus $$$ for savings and investments. I was fortunate to be a GS14 in a high locality pay area. I don't use my TSP. I too am grateful for the 1.7%, better than 0%. Marty, a $800 increase is great, congrats!

 

[Kaufmanrider]

I love that my CSRS covers all living expenses plus $$$ for savings and investments. I was fortunate to be a GS14 in a high locality pay area. I don't use my TSP. I too am grateful for the 1.7%, better than 0%. Marty, a $800 increase is great, congrats!

Sounds like a comfortable retirement for you Cassie, congrats.

Personally I count myself lucky also, early retirement and sufficient income to maintain my life style. I was a GS-13.

The hardest part was getting used to being paid only once a month. I was so used to setting up bill pay based upon being paid every 2 weeks. I think it is a mental thing.

 

[Cassie]

It is Kaufmanrider, thanks. I had to laugh when I read getting use to being paid once a month. The first few months I ran out of budgeted food money! Now I'm doing better and also make sure I have plenty in the pantry "just in case". Life is good!

 

[martyb]

It's helpful that my wife still works & gets paid every other week, so we still have money coming in throughout the month. Once she retires, it'll be just the once a month situation, though. If/when we ever start withdrawing from TSP, I think we can time the withdrawals so they fall in the middle of the month, if we want to. My military retirement will of course also be at the first of the month too, when it begins in 3 yrs.

 

[Redbugdave]

I have my monthly TSP deposited at mid month and my annuity is deposited on the 1st. Just like when working...a payment every two weeks. When you request your TSP payments, you can set it up that way.

Zinger...I had noticed that many under FERS do not invest as much as they should out of their paycheck and most seem to stay in the G fund as well. I think they will have a rude awakening when they run the numbers and can't afford to retire till in their early or mid 60s. You have to have some basic investing knowledge if you are under the FERS plan. It can really work out well if you know how to manage your money.

 

[Kaufmanrider]

I have my monthly TSP deposited at mid month and my annuity is deposited on the 1st. Just like when working...a payment every two weeks. When you request your TSP payments, you can set it up that way.

Zinger...I had noticed that many under FERS do not invest as much as they should out of their paycheck and most seem to stay in the G fund as well. I think they will have a rude awakening when they run the numbers and can't afford to retire till in their early or mid 60s. You have to have some basic investing knowledge if you are under the FERS plan. It can really work out well if you know how to manage your money.

Far too many feds don't contribute enough to TSP or invest what they do wisely. I was surprised at the balances/invested funds some of my co-workers had. Most were my age and about the same time in service. I couldn't have retired if I had their balances.

 

[Cassie]

I checked the OPM website and it looks like the 1.7% COLA will be an additional $100 a month. BCBS went up to $197 a month, a $7 increase. I'm pleased, and this 1st year of retirement went by so fast!