Retirement Planning FAQ For Federal Employees
Retirement Questions Every Federal Employee Needs to Be Asking
Federal employees may feel like they are playing Twenty Questions when they start exploring retirement options. Sometimes ending up with more questions than answers can cause frustration and an overwhelming sense of dread when it comes to retirement planning. Federal Educators is committed to giving you the knowledge needed for a well-balanced retirement plan by shining a spotlight on these popular retirement questions.
- When am I eligible to retire?
Under CSRS, an employee can retire at age 55 with 30 years of service, age 60 with 20 years of service or age 62 with 5 years of service. If you are a FERS employee, retirement is available at your minimum retirement age (MRA) with 30 years of service, age 60 with 20 years of service or age 62 with 5 years of service. There is an option to retire at your MRA with only 10 years of service, but your annuity is reduced by 5% for every year you are under age 62.
- What documents are needed for my Official Personnel Folder (OPF)?
All the documents listed below are critical for retirement approval. If any of these are missing, your personnel officer should be able to assist.
- Beginning and end dates for each employment period (used for benefit computation)
- Effective dates for any promotions or within-grade increases (used to compute your high-3 average salary)
- Dates of any pay changes or earnings along with pay rate
- Tour of duty during any part time employment
- When actually employed service or a record of time actually worked
- Military service dates
- How long does it take to process my retirement application?
In most cases, OPA will complete retirement claims within 60 days. However, if questions arise it will take longer to process. That’s why it’s critical to review all documentation before submitting for final approval. You can read more about the OPM Trap and how to avoid it in this blog post.
- Will I be able to carry my Federal Employees Health Benefits (FEHB) and/or Federal Employees’ Group Life Insurance (FEGLI) into retirement?
If you were enrolled in the FEGLI program for 5 consecutive years before retirement, you qualify! Under FEHB, you must be enrolled or covered by the program.
- Are my premiums the same as they were while I was employed?
Under FEGLI and FEHB, yes. But there is one condition for FEHB if you are a Postal Service retiree. The Postal Service pays a higher percentage of its employees’ premiums until retirement. Upon that time, the subsidy ends and both employees and retirees pay the same premiums.
There’s much more to cover when it comes to retirement planning. Our dedicated team at Federal Educators is here to help you wade through the jargon so you can reap your hard-earned benefits. Schedule your complimentary virtual meeting here or give our Palm Harbor office a call at 813-285-4692 to get started today.