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17 Years Later--Former Fed Learns Expensive Lesson
Total Comments: 17
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December 2, 2008
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Lesson Learned to All
CBP
Sun Mar 9, 2008 12:05 PM
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I feel that this is a lesson we should all learn from. I am not yet retired however researching this information related to both retirements, CSRS and FERS is equally important. Common knowledge should dictate that you are the one that needs to save and follow-up for the future, especially in this unstable day and age--make sure to double check all information that is given you you. Getting in writing! I have learned from asking, reading and then reasking as a system of checks and balances, since in government service you can't always rely on one specific person our individuals. This article was good and very informative to me in considering what's good/not-good for retirement.
Expensive Lesson
US Army
Mon Mar 10, 2008 9:45 AM
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Three comments -
The HR field is very good at is ensuring that employees leaving who want to withdraw their retirement funds understand the consequences of their actions. But when employees leave, all they care about is getting the money now and not about retirement later.
Two - The litigant would have saved himself a ton of trouble and expense if he had just applied for and accepted a federal position. Since he was prior CSRS, the rules would have allowed him to pay back the money and get the credit for 17 years under CSRS, though he would be placed into FERS. If he was at least age 62, then he could put in for CSRS retirement. Note: No payback credit is allowed if you withdraw the money from FERS.
Third - Staying five years would be even better. He would get both CSRS and FERS PLUS qualify to take his health insurance into retirement. That is the best deal federal employment offers for retiring.
All the way around this guy blew it. I have no pity for him.
Will a bank pay interest after you close your acct
Navy
Thu Mar 13, 2008 2:25 PM
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As a former retirement counselor, I always advised individuals exiting but not eligible for an immediate annuity (Even those FERS employees) to leave the money where it was. You never know when you may need that miniscule pension. Yes, it is a sorry concern for some who have not heeded my advice. Now in the FECA arena, I have a older gentleman who filed for workers comp in the 1960's - his salary wasn't very much - so his comp payments are small, even with COLAs. Not too long ago he decided that perhaps he could get more $$ from his civil service pension than from workers comp! However, he had withdrawn his contributions...thus, in same situation as this article states, no contributions -- no pension. The only option he could explore would be returning to govt service and paying his redeposit along with interest, (I'm sure by now the interest amount exceeds what he withdrew.)