When Federal employees retire, they start getting “interim” payments, almost immediately. These payments are approximately 60% of the final, fully annuity. For FERS employees under age 62, there is also an annuity supplement of hundreds of dollars. The author offers details on these annuity payments.
The author says that the chained CPI which the president recently dropped from his budget proposal would actually have been a good thing because of its potential to help with reducing the national debt. He notes that the actual cost to federal retirees from the chained CPI would have been less than the cost of a pizza each month and illustrates its financial impact for federal pensioners.
The author discusses a strategy for maximizing Social Security benefits known as “file and suspend.” In addition to detailing who can use this strategy, he outlines some examples of how it might work.
The Windfall Elimination Provision (WEP) means if you are getting a Social Security benefit as well as a pension where you did not pay into Social Security, your Social Security benefit is reduced. The author provides examples of the financial impact this can have on your earnings.
Would you like to get a 32% higher Social Security benefit? How about being able to collect ½ of your spouse’s Social Security benefit while you are still working; with no earnings test? The author explains a technique called “restricting your benefits” that can work for many FERS or CSRS employees to boost Social Security benefits.
You may be able to acquire more FEGLI coverage by providing medical evidence of insurability or by experiencing a “qualifying life event” (QLE).