Will Federal Retirement Benefits Be Affected By Government Downsizing?
With so much going on in the world lately, having one more thing to worry about can be the straw that breaks the camel’s back. The recent news of government downsizing can be that tipping point for many. Feel like you’re drowning in problems? We’re here to help you relieve one less worry. This guide will prepare you for what’s to come by laying out what will happen to your federal government retirement benefits if you’re caught up in the downsizing and what you can do to protect yourself.
For more advice on handling your federal employee benefits, schedule a consultation with Federal Educators St. Petersburg today.
Navigating Schedule F
If this is your first time hearing about government downsizing, let us bring you up to speed. Back in 2020, an executive order called Schedule F was set in motion in an attempt to regulate government spending. Schedule F resulted in the release of at least 50,000 federal employees from the workforce, and is expected to make a comeback in 2025. You could be next, and you need to know how your government employee benefits may be impacted. Having the foresight of what could happen is the first step in creating a backup plan with your trusted retirement planners in St. Petersburg.
I’ve Been Grouped In With the Job Cuts. What Are My Options?
Once you have confirmation that your job is subject to government downsizing, you have a few routes you can take.
Here are the paths set before you when you’re laid off in St. Petersburg:
- Sign up for voluntary early retirement
- Opt for insurance coverage extensions
- Accept severance pay (if you qualify)
Retiring early is possible, but it may have financial or tax consequences that you need to consider. If you choose to extend your health insurance coverage, certain programs will allow extensions of up to 18 months, which should give you enough time to re-evaluate your career in the meantime. Federal employees affected by government job cuts are also likely to qualify for severance pay that’s based on their pay rate before they were let go.
When to Consider Early Retirement
Depending on your age or financial situation, being affected by government downsizing can present a great opportunity for an early retirement. Retiring early will grant you immediate federal retirement annuity payouts from programs like Social Security or the Thrift Savings Plan. The decision to go for early retirement in St. Petersburg should be made with incredible consideration and a second opinion from your trusted federal benefits planners near you.
Why You Should Meet With a Federal Retirement Consultant
Any decision you make in response to government downsizing should be run by federal benefits advisors you can rely on. Meeting with retirement planners in St. Petersburg will have you going over critical aspects that you need to know:
- Available fed pensions
- Severance pay eligibility
- Changes to health and federal employee life insurance benefits
Your retirement benefits advisor will go into detail with your free benefits analysis. Your review may pull up your years of service, average salary, projected FERS retirement benefits, and anything else that can help you adjust your federal retirement plan for maximum federal employee retirement benefits.
Federal Educators St. Petersburg Is Here to Help You With Your Retirement Benefits
Worried about losing your federal retirement benefits to government downsizing? Contact Federal Educators St. Petersburg today to schedule a meeting so we can get started on your FERS basic benefit plan!