Medicare & Federal Retiree

[beowulf]

As is true of many of the feds I know who retired after a full career under CSRS. I would not have qualified for SS had I not been in the Army for 6 years and then worked for a private company consulting back to the gov for a few years after I retired from the gov. OTOH, CSRS retirees generally have a much better pension than those retiring under FERS. No TSP matching partially offsets that advantage.

 

[RE2Boys]

I'm CSRS but qualified for SS though did not earn my 40th qualifying quarter until AFTER I had retired from the fed govt (age 50). All those HS and college part time jobs, summer jobs, and four years in AF, and some private employment before joining the fed had given me 39 quarters.

 

[beowulf]

Hopefully your SS payments, after the WEP is applied, will cover your Medicare premiums.

 

[Cassie]

Yes CSRS is a good pension for me after 38 years and the last 5 @ a GS14 in the second highest locality pay area. I don't need to depend nor have I touched my TSP, other than the 1x withdrawal I took.

 

[beowulf]

Congratulations, Cassie, you have indeed done very well with CSRS. For years I had friends telling me to leave government and take one of those high paying megacorp jobs. Nearly all of them are or will be working for many more years than I did - layoffs, pension cuts or total disappearance, companies folding, merging, etc. I may have had several different jobs in several different DoD organizations, but, in the end, my pay kept increasing as did my pension. Haven't touched TSP, but will have to roll it to an IRA when MRDs come about. Maybe "they" will change the rules by the time that happens for me.

 

[donheff]

Haven't touched TSP, but will have to roll it to an IRA when MRDs come about. Maybe "they" will change the rules by the time that happens for me.

I have all of my TSP in the G Fund which I view as a pseudo cash reserve for DW and me. I reach RMD territory in three years and I plan withdraw through monthly payments based on age instead of rolling the total over to an IRA. That way I can keep using the G fund for a cash reserve. I can roll over the remainder at any time if I see a need. The way I would tap the G cash reserve would be to exchange G funds for C funds (stock index) and simultaneously sell equities in another account (mine or DWs) to get out the actual cash I need to spend. At a later time if circumstances change I could replenish the G "cash" by exchanging the C funds for G.

 

[W2R]

I have all of my TSP in the G Fund which I view as a pseudo cash reserve for DW and me. I reach RMD territory in three years and I plan withdraw through monthly payments based on age instead of rolling the total over to an IRA. That way I can keep using the G fund for a cash reserve. I can roll over the remainder at any time if I see a need. The way I would tap the G cash reserve would be to exchange G funds for C funds (stock index) and simultaneously sell equities in another account (mine or DWs) to get out the actual cash I need to spend. At a later time if circumstances change I could replenish the G "cash" by exchanging the C funds for G.

I love the TSP G Fund. I have been taking equal monthly payments from it since I retired at age 61, as part of my withdrawal percentage and with the objective of bringing the balance down to lower my (future) RMD's.

As I grow older and get into RMD territory, I plan to continue withdrawing the same amount with no inflation adjustment, as though it was another pension but without inflation adjustment.

This level of withdrawal will satisfy the RMD requirements, last until I am in my 90's, and take care of any lessening of spending as I grow older by gradually providing me with less spending power.

If I don't spend less, oh darn! Wouldn't you know. My taxable accounts can/will compensate for the lack of inflation adjustment since my WR is pretty low.

 

[yakers]

I just signed up for Medicare starting Oct 1st, I chose to get the Part B coverage and continue with Kaiser HMO Advantage Plan (which I think is great, DW covered for last 2 years has been excellent and we are walking distance to a Kaiser facility). Now I am am also covered by DWs insurance (LAUSD) so I am in the process of SUSPENDING (not canceling) my FEHB and will have, If I usderatand it correctly, no charges from my CSRS pension for Medicare coverage. Its all early, probably take several months to know how it all works out.

 

[Brat]

I suspended my FEHB to enroll in Kaiser Permanente NW Medicare Advantage + plan. This next year FEHB will be offering Self + 1 plans (costs should be on the web in early October). Maybe it is time for us to go back to FEHB. Our Kaiser family insurance is very expensive. With Self + 1 and Medicare Part B it may be a push financially.

If you aren't CSRS carefully check the % requirements for survivor benefit should you suspend FEHB participation. Because your husband will have been covered by his employer's health insurance when he retires that is a life event that will qualify him to be included in your FEHB plan.

 

[Tadpole]

I don't know what will happen with self plus one because, once, when I was on the phone with a customer rep at GEHA, I brought the issue of Medicare and GEHA family for seniors. The rep said that seniors on Medicare were, by far, more expensive than all the rest of people in the family plans. If true, even with reductions equivalent to 20% Medicare negotiated rates GEHA pays more for the Medicare eligible. I assume it might be because of waived deductibles and co-pays.

 

[Brat]

It is my understanding that the Feds help fund Medicare Advantage plans. FEHB also helps fund FEHB health insurance plans. It may be a push when it comes to the same plan under each program. If it is equal then I still may come back to FEHB because it will give us more options should we want to leave Kaiser. [Heck, I was a Kaiser member from the age of 6-55, left their service area, came back and re-enrolled at age 73. It's not that I don't know their system.]

I have no doubt that GEHA (my insurer when not a Kaiser member) is taking it on the chin for Medicare Part B insured. It is the waiver of co-pays and deductibles. My cancer treatment was virtually free.