What Is The Best Federal Retirement System?

One of the biggest perks of the Federal Employees Retirement System (FERS) is having access to so many ways to save for retirement. It can be easy to feel lost in a sea of possibilities, but we’re here to help you find the best plan for you so you can save smart and save big. Take a look at your FERS retirement options before reaching out to Federal Educators Tampa for tailored advice from expert retirement planners near you.

An Overview of FERS Retirement Benefits Programs

Federal FERS employees get to enjoy federal annuities and a federal pension in retirement, but how? There are a few viable sources of retirement income between federal employee retirement programs in Tampa, including:

The FERS Basic Benefit Plan

As a FERS government employee, you’re entitled to a certain amount of federal pension benefits in retirement. Rather than a savings account that you contribute to during your career, the FERS basic benefit plan calculates your qualified income amount using a specific formula. Contributing factors that make up your FERS basic annuity include the number of years you have worked and the average between your 3 highest-earning years in employment (also known as the “High-3”).

The Thrift Savings Plan

For a more controllable source of retirement income in Tampa, many FERS employees look into the Thrift Savings Plan (TSP). Your TSP is funded by a certain percentage of your regular pay as an active federal employee. The default percentage is typically 1%, but you can choose to make additional contributions for maximum savings. Employers may match your contribution amounts by up to 5%.

Check out the Federal Educators Thrift Savings Plan overview to learn more about your federal retirement benefits!

Social Security Pension Plan

Similar to the FERS retirement pension, Social Security is a federal employee pension plan available for most federal government employees in Tampa. Federal employee retirement annuity payouts are based on the number of years worked, average annual income, and the age of retirement.

There is no right or wrong FERS retirement plan, just whichever one works best for you. Those with extra income may want to contribute their leftover earnings to a TSP, while others may simply rely on FERS payment or Social Security.

Your Short Guide to Types of FERS Retirement

The way you retire also has a great impact on how much you receive from your federal retirement plan. Take a moment to observe the different ways federal employees retire in Tampa so you don’t make any irreversible mistakes:

• Voluntary retirement is the “normal” way to retire, which grants you the full amount of retirement benefits.
• Early retirement takes into account your minimum retirement age and your reason for retiring early to determine the amount you qualify for in fed pensions.
• Deferred retirement is reserved for retirees who previously worked as a FERS employee and may still qualify for certain FERS benefits.
• Disability retirement ensures that disabled individuals can still qualify for a FERS pension as long as they have worked in the position for at least 18 months.

Read more > First Steps: How Do I Plan Out My Federal Retirement Plans?

Federal Educators Tampa Helps You Find the Right Federal Retirement Plan For You!

Not sure which federal government retirement system is best? Meet with your reputable Federal Educators benefits advisors in Tampa! Federal Educators Tampa is here to help you explore your options so you can make the most of your FERS basic benefit plan. Attend our educational workshops to learn more about how the federal retirement system works and how to navigate your federal government employee benefits. Call (813) 568-1212 to get started!