FERS Retriement

[lets-retire]

I was doing my normal job seach and noticed a couple interesting Federal Jobs listed. The pay is about the same, but the main deciding issue is retirement. Currently I plan to retire with approx 44% yearly earnings. The position listed is currently a non-Law enforcment Officer Police officer. I read a report form OPM which seemed to indicate an interest in changing this position to a Law Enforcement Position (read higher apy/retirement).

I have a couple of questions for those of you who are familiar with the FERS retirement system. I sent the question to a benefits rep,who sent back an automated message stating they'll get back with me in 7-15 days, which could be after the announcement closes.

1) If I purchase my military time under FERS is it treated as if I had worked the entire time in the federal civilian job?

2) I read that the full retirement benefit is payable, for me, when I serve 30 years and attain 57 years old. If I choose to retire younger than my MRA but with more that 30 years creditable service, can I start receiving payments at a reduced rate, like 5% per year penalty.

 

[azanon]

2) There's a early retirement option at 50 years of age with 20 years of credible service, or at any age with 25 years of credible service. If you retire under this scenario, you could begin receiving payments, but at a 5% reduced rate for every year you are below MRA.

 

[newellcr]

Lets-retire,

Here are a couple of links that may help, http://www.opm.gov/asd/htm/hod.htm, http://www.opm.gov/retire/html/library/fers.asp.

1. http://www.opm.gov/asd/hod/pdf/C023.pdf page 36 starts the FERS info for military service credit. I believe that those purchased years count just as if you had worked during them in FERS.

2. http://www.opm.gov/fers_election/ri_90/f_seg.htm. What's a "non-Law enforcment Officer Police officer"? If this position isn't covered under law enforcement, then use the regular rules, http://www.opm.gov/retire/html/library/fers.asp

"Firefighters, Law Enforcement Officers, and Air Traffic Controllers
These groups of employees receive an unreduced benefit at age 50 with 20 years of service, or at any age with 25 years of service. "

Good Luck,

Chris

 

[lets-retire]

azanon--That sounds similar to the reorganization/reduction in force/involuntary reduction type retirement. Is the only difference between teh two teh 5% per year penalty?

newellcr--From what I can tell there are certain law enforcement positions that are not calassified as law enforcement for purposes of pay and retirement. I thought it was just a fluke, but the report I read from OPM made me think it was rather common. The position I'm looking at is titled police officer and carries the series desigination for police officer and the job description appears to be that of a police officer. From what I was able to determine from the OPM report the only difference between the duties of this job and that of a police officer is the authority to arrest. The ability to arrest is irrelavant when determining law enforcement pay. A recreation aide or cook in a prison is entitled to Law Enforcement Officer pay and retirement.

I think that was the point of the research and report from the OPM concerning LEO pay and retirement. That is also the reason I think the position will eventually be reclassified to receive LEO pay and retirement.

 

[daystar]

Azanon was correct about the early retirement option in FERS, however there is no age penalty when you retire under an "early retirement" authority.

You will definetely find out whether the police officer job is eligible for the "law enforcement retirement" after you get hired. Just look in the Retirement block on your first SF-50 and it will say either FERS or FERS Special. FERS Special will give you the higher law enforcement calculation (1.7%). If it says FERS, you are just like everyone else and you will get 1% per year.

 

[lets-retire]

Thanks for your replies. So good as the Federal retirement sounds it isn't better than what I already have.

 

[Enuff2Eat]

good choice, if i have to do it all over again. i wouldn't choose to work for the fed. you make good money but not great. good stability for the family, if that's want you want in life. you can never get rich. some cases paycheck to paycheck. hard to get ahead.

i would work for myself i have to do it again. went to a reunion and everyone that is not an "employee" done much much better. they might have to work harder but financially seems to be much better off.

just a thought

enuff

 

[BearlyWorking]

Federal retirement system is neither logical nor simple. You will need to do some careful reading at the opm site given above. As to whether working for Feds is good or bad depends on the job and your need for stability. I have been working for them almost 20 years. Some good, some bad. Just don't plan to stay too long. Save, invest or something outside of the federal retirement system so you do not have to wait until 60 for a full pension. That's the biggest mistake I see people making.

mike

 

[Bimmerbill]

I think the biggest bonus to the federal employment system is the time off and the working hours. I get a lot more time off working for the federal government then when I worked for a major Telecom firm. Plus, we can work only 40 hours a week, after that we earn time off.
At the Telecom firm I was salary, and regularly pulled 60+ hour weeks. I had 3 weeks off, which was pretty much top of the line.