As a federal employee preparing for retirement, there are several things that you need to be concerned about. The key to making sure that everything goes smoothly is to have a budget and a plan. You wouldn’t go on a road trip or board a plane without knowing where you’re headed or preparing enough resources to make it there, right?
Whenever retirement in the United States is discussed in any capacity, even by non-federal employees, Social Security always comes up. Many people have arranged their retirement plans with Social Security assumed as part of it…but many times they are unaware of what Social Security will actually look like and how it works.
The Civil Service Retirement System is a defined benefit contributory pension plan. It was established August 1st, 1920, and was later replaced by FERS in 1987.
Retirement under the Federal Employee Retirement System doesn’t affect government workers alone. If you’re a federal employee, you’ve probably also been choosing and arranging your coverage to provide for your family under FERS as well.
Several different government agencies are covered under Special Provision Retirement, which differs slightly from the traditional Federal Employee Retirement System. In short, a number of government careers which involve more physical or mental stress are provided with options for earlier retirement.
As a FERS Federal Employee you have a three component retirement system, FERS Pension, Social Security, and Thrifts Savings Plan.
As a federal employee, you may be wondering exactly how much money is being deducted per paycheck for your retirement. First, we need to take a look at what items are considered part of your retirement package.
We've been talking about the accumulation vehicle of your Thrift Savings Plan, which is one of the best out there. Once you retire though, we get tons of questions about what to do with your TSP because now you've moved to the de-accumulation stage of your life.
