Active-duty retirement thwarted...advice needed

[Rustic23]

An interesting thing that was pointed out to me about military promotions. Everybody is going to be passed over for the next rank/thing at some point. Very few make 4 stars, and only one 4 star at a time becomes Chairman of the JCS and seldom if a military man/woman ever become Secretary of Defense. Yes, there have been a few generals, Jackson, Grant, and Eisenhower, to name a few, that were never passed over. Bad part is, if this happens before 20 years, it is a double whammy as you normally lose your job also.

 

[Neecy]

There was a blue to green program - AF officers could go into Army as officers at the same rank (BTW - the rank progression was quicker in the Army) - had a few colleagues do that when 'separated' involuntarily. That may allow you to get to the 20 and punch - might want to see if it's worth it to you.

Reserves can also end up being paid full-time if you are highly valued and if the orders are for certain types of support you can pro-rate the dates of your retirement up (must have done duty after Jan 1 2008 or so and at least in 60 or 90 day chunks). I just got off the phone with an O-5 who was on 1.5 year orders, has been selected for Air War College and is now on PCS orders there - hope to get a full time job in DC after that and a promotion (turns out he was passed over to O-6 this time but still selected for in-residence).

I just pinned on O-6 and have a new IMA job in the Reserves....had been passed over last time and was going to do my 28 years ending as an O-5 and punch - the amount of increase in retired pay at O-6 versus O-5 Reserves is worth the extra three years of fitness tests, medical tests, crazy emails, yearly changes in personnel software applications and other general buffoonery.

As previous poster said - military is a family and a very distinct part of society. Not many others have the types of experiences you do and the access to the facilities definitely enhances the quality of one's life in the LBYM mode.

Check on the military retirement 'conversion' or plus up to the GS retirement info - knew many of the military retirees being able to move up their civilian retirement dates and plus up the pension amounts.

Lastly, sorry to hear about your situation - it can suck when the military says goodbye versus the other way around. My husband is in a similar situation, but is eligible for retirement - it still hurts. However, one can use this transition time as one of an opportunity to decide what one truly values and work towards making one's life meet those values. So, give yourself some time to think about what's important and move towards that in your life. It will make a huge difference in the quality of your life.

Thank you for your advice and anecdotes! It is a lot to think about. I will look into the military conversion or plus up if I make it into civil service. Right now, I am tying up the lose ends to cross over to the Reserves through palace chase. BTW, congratulations on your promotion!

 

[Neecy]

An interesting thing that was pointed out to me about military promotions. Everybody is going to be passed over for the next rank/thing at some point. Very few make 4 stars, and only one 4 star at a time becomes Chairman of the JCS and seldom if a military man/woman ever become Secretary of Defense. Yes, there have been a few generals, Jackson, Grant, and Eisenhower, to name a few, that were never passed over. Bad part is, if this happens before 20 years, it is a double whammy as you normally lose your job also.

Sec Gates was a military officer in the Air Force. He got out when his obligation was over...probably as a captain. His predecessor, Sec Rumsfeld, was also a naval aviator and retired as a Navy captain in 1989. Also Robert McNamara was a lt col in the US Army Air Forces.

 

[Rustic23]

True, but none were promoted to their next rank within the military. If they had stayed in they would have been passed over at some rank. In fact if Rumsfeld, and McNamara most likely were. Gates did not stay long enough. Very close friend, Naval Academy grad., Captain, passed over for Admiral. Shuffled off to essentially a non promotable job.

 

[Nords]

Here's a factoid for you military-history buffs.

Remember COL David (Hack) Hackworth? Just over 40 years ago, on his final tour, he denounced the administration's execution of the Vietnam War in a TV interview. He kicked over a hornet's nest of controversy and was threatened with courts-martial on a number of offenses.

His defense lawyer, who managed to negotiate the dropping of all charges, was a rising young hotshot named Leon Panetta...

 

[Neecy]

True, but none were promoted to their next rank within the military. If they had stayed in they would have been passed over at some rank. In fact if Rumsfeld, and McNamara most likely were. Gates did not stay long enough. Very close friend, Naval Academy grad., Captain, passed over for Admiral. Shuffled off to essentially a non promotable job.

It seemed to me that Gates and Rumsfeld did their obligation and set their sights on making it in the civilian world. McNamara had to be wooed by JFK to accept the Sec of Defense appointment.

 

[Neecy]

Here's a factoid for you military-history buffs.

Remember COL David (Hack) Hackworth? Just over 40 years ago, on his final tour, he denounced the administration's execution of the Vietnam War in a TV interview. He kicked over a hornet's nest of controversy and was threatened with courts-martial on a number of offenses.

His defense lawyer, who managed to negotiate the dropping of all charges, was a rising young hotshot named Leon Panetta...

Wow.

 

[jimnjana]

Here's a factoid for you military-history buffs.

Remember COL David (Hack) Hackworth? Just over 40 years ago, on his final tour, he denounced the administration's execution of the Vietnam War in a TV interview. He kicked over a hornet's nest of controversy and was threatened with courts-martial on a number of offenses.

His defense lawyer, who managed to negotiate the dropping of all charges, was a rising young hotshot named Leon Panetta...

Thanks for posting this. I live next door to one of COL Hackworth's former Company Commanders during Vietnam. A warrior. Leon may have some redeeming qualities after all.

 

[Neecy]

I was told last week that I will not be selectively continued in the AF after the results of the O-5 board that met in Mar. I was planning on PCSing to a job in Texas early July. A part of me is relieved that I will not be stuck as an O-4 for the next 5 years on active duty. The other part of me is sad/upset that my active duty pension and upcoming position are both completely jammed up. This year started off promising, I was selected for a major command award, my Promotion Recommendation Form looked better than last year, found missing decoration paperwork, etc...However, as fate would have it, to serve the 5 years on active duty in a higher grade, is not in the cards. Even though my professional development would have been limited (decayed), I thought I would be able to finish out my 20 years on active duty.

I will get a severance of about $118,000 before taxes. I've saved about $89,000 in my TSP and $57,000 in my IRA. I have about 3 months of terminal leave and 1 month of permissive TDY. I am pretty sure I will have to pay hefty taxes this year because of the severance. My goal is to not live on that and land a GS job by the end of next year. I have a pretty good lead on one, but do not want to "count my chickens before they are hatched."

I am also planning on joining the Reserves, so I can make up the 5 years for a reserve pension. I am encouraged by what I read in the ATC thread about the Reserves, but would like to get advice/opinions on my overall situation. TIA.

Just an update! I got a GS-13 job in February of this year. I am still trying to get into the Reserves. I had to do a package for a twice passed over waiver (letters of recommendation, last 5 OPRs and fitness report). I have a lot of support from the leadership there at the base (it is only 45 minutes away) to become a traditional reservist. It finally got approved at the Numbered Air Force level and now it is at Air Force Reserve Command. I am told that AFRC will normally concur with the NAF. I have been working this package since Feb, so I am glad there is finally traction! The recruiter had no idea how to go about it for the first three months. Anyway, happy that there is some progress on that front.

Any advice/information for federal retirement would be appreciated. I just got the paperwork back for buying my military time. It will cost me $24,881 to buy my 14.5 years of military time. I have to pay the deposit by 2/12/2015 before it accrues interest.

TIA

 

[Milton]

YG96 in the submarine force is practically guaranteed command, and some of them are going to have to do it twice.

No Perisher in the USN! ;-)

 

[Nords]

Neecy, I'm glad that's working out. It'll be interesting to see whether you promote in the Reserves... I've seen a lot of passed-over Navy active duty earn a Reserve promotion.

This is a federal civil-service GS-13, right? Is there a calculator to help with figuring out the wisdom of buying your service time? If you buy 14.5 years of time with civil service, then what happens to the military pension? If you bought the time then how many good years would you need for a Reserve retirement, and how much pension would you receive?

Then there's the whole issue of the civil service healthcare system vs Tricare and Tricare For Life.

About the only other advice I can think of is to keep maxing out your civil service TSP for the match. And at the GS-13 pay scale, you probably want to max out the TSP instead of the Roth TSP.

 

[Neecy]

Neecy, I'm glad that's working out. It'll be interesting to see whether you promote in the Reserves... I've seen a lot of passed-over Navy active duty earn a Reserve promotion.

This is a federal civil-service GS-13, right? Is there a calculator to help with figuring out the wisdom of buying your service time? If you buy 14.5 years of time with civil service, then what happens to the military pension? If you bought the time then how many good years would you need for a Reserve retirement, and how much pension would you receive?

Then there's the whole issue of the civil service healthcare system vs Tricare and Tricare For Life.

About the only other advice I can think of is to keep maxing out your civil service TSP for the match. And at the GS-13 pay scale, you probably want to max out the TSP instead of the Roth TSP.

Hi Nords! So glad you came into my thread. That would be awesome if I get promoted in the Reserves. I will be in an overage position, so I do not know how that works when it comes to Definitely Promote/Promote allocations. Yes, I agree with maxing out my TSP. I am loving the match already! Yes, it is a federal GS-13 position. I can't find a calculator. But if I had an active duty pension, I would have to waive it to collect a federal pension. However, I can collect a Reserve pension and a federal one. If I buy my time, I would be able to retire sooner (I think you need 20 years minimum). FYI-- I am forty years old.

The Advantages of Making A Military Deposit
Posted on Sunday, 15th November 2009 by Linda Sherman

If you are a current federal employee with prior military service you should consider making a deposit for your military service. There are two reasons why making a military deposit may be beneficial:
You could retire sooner, or
Your can increase your retirement annuity.
By making this deposit, your years of military service are included in your civilian retirement computation, just as if you performed that service under your current retirement system. Unless you are receiving a military retirement, making a military deposit is usually a great deal, often paying for itself within a year or two of retirement.
Retire Sooner: A military deposit may allow you to retire from your civilian position earlier than with your civilian service alone. If you reach your Minimum Retirement Age (MRA) before you attain the required years of service, this may be your ticket to retire earlier than anticipated. For example, if you began your federal civilian career at age 28 as a FERS employee and, you were born in 1955, your MRA is 56, but you will not attain 30 years of federal civilian service until you reach age 58. If you made a deposit for your four years of active duty military service, you could retire at the MRA of 56 – two years earlier than if you did not make the deposit. (Note: If you are covered under the Special Retirement provisions for Law Enforcement Officers, Firefighters, Air Traffic Controllers, and Military Reserve Technicians the military service cannot be credited towards the 20 years of special retirement coverage for retirement eligibility, but will be used in computing your annuity.)
Increased Annuity: Making a military deposit will increase your federal retirement annuity. By making the deposit, you are purchasing a guaranteed monthly annuity payable when you retire. The annuity is paid directly to you in the form of monthly payments for the rest of your life (and your spouse’s life if you elect a spousal annuity). The military deposit is fully refundable if you change your mind and want a refund of the deposit.
To determine if this deposit is advantageous to you, simply compare the total military deposit amount to the increase in retirement income. Then determine how long before the increase in your retirement annuity will pay for the military deposit amount.
For example, let’s say you have four years of military service and five years of federal service as a FERS employee.
High-three Salary: You don’t know what your high-three salary will be when you retire, but you decide to use your current salary of $60,000 as your high-three salary.
Military Deposit Amount: Your payroll or HR office determines your military deposit amount will be $2,600 for four years of military service.
Computation: If you are a FERS employee, your retirement annuity is increased 1% for each additional year of service. So the computation is:
4 years of additional service x 1% per year x $60,000 = $2400 yearly increase in retirement income attributable directly to the one-time military deposit. That is a $200 per month increase in your annuity payable for your entire life.
Conclusion: In this example, it took just one year and one month of retirement income attributable to the military service to equal the entire military deposit amount. This is the break even point. The higher annuity income continues for as long as you live, and will be also used to compute a spousal annuity if applicable. If you plan to spend more than 13 months receiving this annuity, the deposit is beneficial.
If you are a CSRS employee the military deposit amount is higher, but the return is also higher:
X years of military service x 2% per year x high 3 salary = annual annuity increase.
This calculation does not include the time value of money considerations. For those analytical types, TVM calculations would be appropriate, for everyone else, let’s keep it simple since this is normally such a short period of time.
Retired Military: Making the military deposit is not for everyone. If you are retired military and are receiving full military retirement pay, it is usually not advantageous to make a military deposit, because you must waive your military retired pay for the service period to be included in the civilian retirement annuity. Usually the full military retirement is of greater value than the civilian retirement annuity. Use the computation method above to determine if making the deposit would be beneficial or consult with your HR/Benefit Specialist.
Military Disability Retirement & Reserve Retirement: You must waive your military retired pay in order to receive credit for military service in a civilian annuity, unless your military retirement is based on:
A service-connected disability incurred in combat with an enemy of the US;
On account of a service-connected disability caused by an instrumentality of war and incurred in the line of duty during a period of war; or
Under provisions of 10 U.S.C. 12731-12739 (retired members of the reserves).

A deposit is still required for the active duty military service to be credited in your civilian retirement annuity.

 

[Greg V]

I'm an ex-Air Reserve Technician (ART) who retired from both my military and civilian statuses on 30 Jun 12. I left active duty in the early 90's in conditions much similar to today's drawdown. Like any job, you'll find many views about being an ART...I'll give my experience. I enjoyed my career as an ART at both the unit and HQ levels and found it to be an excellent way to leverage the time already spent on active duty. I bought back my time prior to accruing interest. If you buyback your AD time, it can "count" for both your military and civil service annuities. If you're an AF Academy grad, you can buyback those 4 years in addition to your AD time. Your system would be FERS...no CSRS option. In my case (FERS), I ended up with 36 years and just under 8000 points militarily and (an estimated, still waiting final word from OPM) 39 years for retirement as a civil servant. Together these two pensions form a great foundation for retirement. Each person's situation is unique and you'll have to assess the pros/cons and weigh the options for yourself. Being an ART worked out well for me. The personal, professional and family issues involved are too numerous to lay out in a post of any reasonable length. If you'd like to discuss any specific items, I'll be glad to share my point of view...one guy's opinion. Good fortune on your future efforts.

 

[Greg V]

Another item...your potential path of civil servant and AF Reservist without having the jobs linked together like an ART retains many of the pros I listed above with the additional plus of not having your civil service job contingent on your military membership. You have some good options to consider for your careers.

 

[Neecy]

I'm an ex-Air Reserve Technician (ART) who retired from both my military and civilian statuses on 30 Jun 12. I left active duty in the early 90's in conditions much similar to today's drawdown. Like any job, you'll find many views about being an ART...I'll give my experience. I enjoyed my career as an ART at both the unit and HQ levels and found it to be an excellent way to leverage the time already spent on active duty. I bought back my time prior to accruing interest. If you buyback your AD time, it can "count" for both your military and civil service annuities. If you're an AF Academy grad, you can buyback those 4 years in addition to your AD time. Your system would be FERS...no CSRS option. In my case (FERS), I ended up with 36 years and just under 8000 points militarily and (an estimated, still waiting final word from OPM) 39 years for retirement as a civil servant. Together these two pensions form a great foundation for retirement. Each person's situation is unique and you'll have to assess the pros/cons and weigh the options for yourself. Being an ART worked out well for me. The personal, professional and family issues involved are too numerous to lay out in a post of any reasonable length. If you'd like to discuss any specific items, I'll be glad to share my point of view...one guy's opinion. Good fortune on your future efforts.

Congratulations on your retirement! How many military years did you buy back? At 39 years, do you get 39% of your civilian pay for life? My minimum retirement age is 57 years. I have 14 years and 9 months to buy back. If I spend another ten years, that would give me 24 years and 9 months at 50. But I have to be 57 years old to receive a pension, right? Or plan to stay until 57 years old and have 31 years and 9 months (inshallah)? Also, what type of health insurance do you plan on using? Thanks!

 

[Greg V]

I get 39% of my High Three average civilian pay for life though indexing the benefit doesn't start until I'm 62. There's also an option, with a reduction in annuity, that is like military SBP; lets my spouse get 50% of my civil service annuity if I die first. I bought back ~20.5 yrs for civil service. Your Minimum Retirement Age (MRA), 57 sounds about right for you, is when you can get an unreduced retirement. Check the OPM site; you can retire earlier than MRA if you meet specific age/years standards, but with a reduction or delay in annuity. I retired at 58.5 years oid. That means I get my civilian annuity now, but not my military annuity until the beginning of 2014. For health care, I keep my FEHB Blue Cross coverage until I'm a retired military guy when I'll suspend (not cancel) my FEHB coverage and go to Tricare. I don't know much about your situation...location, job, support for your military participation from your civilian leadership, your career desires/plans...but one approach would be to fence some of your severance to buyback your AD time, work until at least MRA (57) and continue your military career, unit or IMA, at least long enough to qualify for a military retirement. As time goes on, other doors may open and you can adjust your plan. As mentioned by Nords, TSP is an outstanding benefit and contributing enough to at least get the 5% matching should be a priority. You also have the new Roth TSP option to ponder. Lastly, if you qualify for a military retirement, I believe DFAS will recoup the pretax amount of your severance pay from your military annuity (max rate of 40% of the monthly amount) once you start receiving that check. Check this link for the DFAS guidance: http://comptroller.defense.gov/fmr/07b/07b_04.pdf.
Lots of things to consider as you look at choices, but, since you currently have a GS-13 position (I assume a permanent appointment), you have a good platform from which to formulate your plan.

 

[Nords]

From what you've read, it looks like a good deal. I'm afraid that this is way outside my area of expertise, and I don't know the pitfalls.

I'd have two concerns:
1. Even as a GS-13 I'd be worried about the drawdown. If you bought your service, what would happen in the case of a RIF?
2. I'd commit the money at the last possible moment.

If you don't get the "been there, done that" answers from this forum, you could also try one of Linkedin's veterans forums.

 

[Neecy]

From what you've read, it looks like a good deal. I'm afraid that this is way outside my area of expertise, and I don't know the pitfalls.

I'd have two concerns:
1. Even as a GS-13 I'd be worried about the drawdown. If you bought your service, what would happen in the case of a RIF?
2. I'd commit the money at the last possible moment.

If you don't get the "been there, done that" answers from this forum, you could also try one of Linkedin's veterans forums.

1. I can get a full refund back of my deposit.
2. I agree. I won't pay it until 2/10/15.

 

[Neecy]

I get 39% of my High Three average civilian pay for life though indexing the benefit doesn't start until I'm 62. There's also an option, with a reduction in annuity, that is like military SBP; lets my spouse get 50% of my civil service annuity if I die first. I bought back ~20.5 yrs for civil service. Your Minimum Retirement Age (MRA), 57 sounds about right for you, is when you can get an unreduced retirement. Check the OPM site; you can retire earlier than MRA if you meet specific age/years standards, but with a reduction or delay in annuity. I retired at 58.5 years oid. That means I get my civilian annuity now, but not my military annuity until the beginning of 2014. For health care, I keep my FEHB Blue Cross coverage until I'm a retired military guy when I'll suspend (not cancel) my FEHB coverage and go to Tricare. I don't know much about your situation...location, job, support for your military participation from your civilian leadership, your career desires/plans...but one approach would be to fence some of your severance to buyback your AD time, work until at least MRA (57) and continue your military career, unit or IMA, at least long enough to qualify for a military retirement. As time goes on, other doors may open and you can adjust your plan. As mentioned by Nords, TSP is an outstanding benefit and contributing enough to at least get the 5% matching should be a priority. You also have the new Roth TSP option to ponder. Lastly, if you qualify for a military retirement, I believe DFAS will recoup the pretax amount of your severance pay from your military annuity (max rate of 40% of the monthly amount) once you start receiving that check. Check this link for the DFAS guidance: http://comptroller.defense.gov/fmr/07b/07b_04.pdf.
Lots of things to consider as you look at choices, but, since you currently have a GS-13 position (I assume a permanent appointment), you have a good platform from which to formulate your plan.

Yes, I have a permanent appointment (after my year probation). You are right, they will recoup my severance. I hope it is not 40% of the monthly amount (I will check out the link). Did you buy back 20.5 of your Reserve time? Thanks for the information...very helpful.

 

[Greg V]

I bought back 16.5 yrs of AD and 4 AF Academy yrs for Civil Service. The years also count toward your "Leave" Service Computation Date (SCD) for how much leave you earn per pay period. It maxes out at 8 hrs/pay period at the 15 yr point, so you've probably reached 8 hrs by now.

Before I forget, your Leave SCD is a reasonable guess for Retirement SCD when estimating retirement benefits, but it is not your official Retirement SCD. Your agency calculates an estimated Retirement SCD and amount when you actually apply for retirement and OPM does the final calculation...and the date and resulting annuity could be different.

The 16.5 AD yrs counted as both 16.5 "good years" and 1 point/day for my military retirement; lots of points. AF Academy yrs were not a player for military retirement. The formula to recoup SSB, and I think Severance as well, is to withhold a percentage of your retirement pay based on the ratio of your retirement points due to AD time and total points...up to a max of 40%. It used to be as high as 90% until there was a recent change in the DFAS manual.

After your probation year, your RIF position shouldn't be too vulnerable based on your status as a veteran. A short discussion with Civilian Personnel experts would let you know where you stand in relation to a RIF.

 

[Neecy]

I bought back 16.5 yrs of AD and 4 AF Academy yrs for Civil Service. The years also count toward your "Leave" Service Computation Date (SCD) for how much leave you earn per pay period. It maxes out at 8 hrs/pay period at the 15 yr point, so you've probably reached 8 hrs by now.

Before I forget, your Leave SCD is a reasonable guess for Retirement SCD when estimating retirement benefits, but it is not your official Retirement SCD. Your agency calculates an estimated Retirement SCD and amount when you actually apply for retirement and OPM does the final calculation...and the date and resulting annuity could be different.

The 16.5 AD yrs counted as both 16.5 "good years" and 1 point/day for my military retirement; lots of points. AF Academy yrs were not a player for military retirement. The formula to recoup SSB, and I think Severance as well, is to withhold a percentage of your retirement pay based on the ratio of your retirement points due to AD time and total points...up to a max of 40%. It used to be as high as 90% until there was a recent change in the DFAS manual.

After your probation year, your RIF position shouldn't be too vulnerable based on your status as a veteran. A short discussion with Civilian Personnel experts would let you know where you stand in relation to a RIF.

Wow, it used to be 90%! I guess I should count my blessings. I wonder what happens if I passed away before repaying everything?
Thanks again!

 

[Greg V]

Couldn't find out if my spouse would have to continue to repay if I die first. I submitted a question to the DFAS retirement guys, but they wouldn't answer my question unless I was in their system as a military retiree. That won't happen for me for another year plus as I'm a "gray area" retiree until reaching 60. I'll pass along any wisdom that surfaces as I continue my research.

 

[Neecy]

Couldn't find out if my spouse would have to continue to repay if I die first. I submitted a question to the DFAS retirement guys, but they wouldn't answer my question unless I was in their system as a military retiree. That won't happen for me for another year plus as I'm a "gray area" retiree until reaching 60. I'll pass along any wisdom that surfaces as I continue my research.

OK, thanks!

 

[rackingguy]

When you're going through the discharge process, it'd be worth it, if you qualify, to look into a disabled veteran status. Here's a pretty thorough guide to veterans preference points. I don't know if there are different preference points ratings for different agencies, but I imagine they're similar.

 

[ejw93]

Just an update! I got a GS-13 job in February of this year. I am still trying to get into the Reserves. I had to do a package for a twice passed over waiver (letters of recommendation, last 5 OPRs and fitness report). I have a lot of support from the leadership there at the base (it is only 45 minutes away) to become a traditional reservist. It finally got approved at the Numbered Air Force level and now it is at Air Force Reserve Command. I am told that AFRC will normally concur with the NAF. I have been working this package since Feb, so I am glad there is finally traction! The recruiter had no idea how to go about it for the first three months. Anyway, happy that there is some progress on that front.

Any advice/information for federal retirement would be appreciated. I just got the paperwork back for buying my military time. It will cost me $24,881 to buy my 14.5 years of military time. I have to pay the deposit by 2/12/2015 before it accrues interest.

TIA

Neecy -

Thanks for your service- Sorry I am late to the party. I've just become active on the ER board in the last few months.

I'm in a similar boat as you... Federal Employee under FERS, working towards earning Reserve (Navy) retirement as well. I did a FERS buyback using Roth IRA contributions (tax- and penalty-free withdrawals).

My Notes:
1) $24k sounds a bit steep for 14 yrs. I paid just over 7k for 7 years (plus 4 as an Academy midshipman). My commissioning date was 1993.

2) It's easy to calculate whether or not the FERS buyback (vs leaving 24k in a retirement acct) makes sense. Just figure out the Future Value of $24k deposited today at an 8% return by age 60 using an HP12C calculator or the 'FV' function on excel. Then multiply that number by 4%... that's the approximate annual income you would receive as an 'annuity'. Compare that annuity to what you would get as a high-step GS-13 as your last 3 years of employment. In my case, I figured I would have to earn guaranteed 14% return in an IRA-equivalent acct to match the FERS annuity, so it was a no brainer to do the buyback.

3) Assuming the buyback makes sense, deposit your check 90 days from the deadline, just to make sure there are no admin mistakes at DFAS.

4) Keep meticulous records of your DFAS FERS buyback correspondence. Put electronic copies on a google vault and/or paper copies in a safe deposit box. Seriously.

5) There are actually 3 or 4 SCD dates, including SCD Leave, SCD Retirement, SCD RIF, SCD Civilian. In most cases they are all the same, BUT YOU NEED TO CHECK THEM in EBIS both before and after you deposit your check. Make sure you understand what each one means.

6) Even though your GS 'Lobotomy' scars are still fresh, ask around to attend a local FERS mid-career retirement planning seminar. You'll learn stuff like:

===
Retirement:
*** High-3 is the rolling average of ANY CONSECUTIVE 3-years of pay.
- Note that the High-3 'clock' may start on ANY day, it is not locked into Calendar, Fiscal, Leave, or Ratings-year.

Life Insurance:
Government actually provides you with life benefits in ADDITION to what is offered through FEGLI. They include:

- Most agencies (Navy included) pay an 'optional' $10K upon death of an employee. In addition:

(Employees w/ 18 mo. to 10 yrs of CIVILIAN (no 'buyback') service:
1. Lump sum payment of $29K, PLUS
2. Lump sum of GREATER of (a) 50% salary or (b) 50% x High-3 average.

(Employees w/ > 10 years CIVILIAN service):
1. The two-part benefit listed above, PLUS
2. 50% of what your annuity would be based on your years of service (no pre-age-62 reduction)
(ie years of service x 'Hi-3' x 50%).

TSP:
- Spouse must sign a notarized form if you choose to take your TSP in ANY form other than a survivor-annuity.

Health/FEHB:
- If you retire and fail to elect survior annuity benefit (ANY value), FEHB spousal health care coverage ceases when you die.
- 40% of persons requiring Long Term Care are UNDER the age of 65 (car/motorcycle crash primary cause). Consider LTC insurance.
- Fill out 'Advance Health Care Directive' ('pull the plug' authorization) form. Forms available for free w/ Scripps/Sharp/Kaiser etc. This stays on file w/your medical record as a legal document.

Life/Estate Planning:
- Make sure you have current Beneficiary designations (ie Spouse PRIMARY, 'All my Children' CONTINGENCY) on the following:
1. SF 3102, FERS retirement (also covers death while in-service)
2. SF 2823 - FEGLI (if participating in FEGLI).
3. TSP-3 - TSP Beneficiary designation.
4. SF 1152 - Unpaid Compensation (Lump sum Payout of Annual Leave and Unpaid Salary upon death in-service).