Will Changes to Federal Employee Benefits Provide a Financial Windfall (or Disaster)? The Joy and Pain of the Rumor Mill
Real proposed changes to federal employee pay and benefits always lead to rumors about how some will benefit and some will be harmed. The internet gives rumors a credible life of their own. Here are some of the latest rumors and the often less dramatic reality.
OPM says that Service Credit System corrections are complete and the agency is providing a letter with your current account balance information to minimize the additional impact of interest accruing. The letter also tells you about the grace period so you about can maximize the flexibility of paying down your current account balance without the accrual of additional interest.
The deficit commission has proposed changing federal retirement to use the highest five years of earnings to calculate civil service pension benefits for new retirees (CSRS and FERS) rather than the highest three years. How much of a difference would this make in a retirement annuity? It depends. Here are several scenarios.
Federal Employee Re-Deposits: Federal Employees Who Return to Work After Withdrawing Retirement Contributions
This article looks at your retirement annuity when you left federal service, withdrew your contributions and did not re-deposit the money when you returned to work for Uncle Sam. What should you do?
Will You Receive Extra Social Security Credit as a Federal Employee for Your Prior Military Service?
Were you in the military prior to 2002? Are you going to qualify for Social Security? If you answered “yes” to both questions, I have good news for you! You are going to receive extra earnings credits, which will result in a higher Social Security benefit. Hereâ€™s how it works.
Do you have questions about the CSRS Voluntary Contributions Program? You are not alone. The CSRS Voluntary Contributions Program (VCP) is an excellent benefit for CSRS and CSRS Offset federal employees. One of the great ways to use this program is to max-fund an IRA. Here is an exclusive excerpt from a new book that explains how this process works.
Every year various agencies update numbers (generally dollar amounts) for benefits that impact federal employees and retirees. Not every agency has issued all their 2011 updates, but many of them have. Here are some of the more important financial numbers for the federal workforce in 2011.
Many people are curious about the best day to retire in 2011. Well, the best day to retire in 2011 is the same as it was in 2010; that is December 31st. This is especially important for those who are planning on receiving a large annual leave payment, as the leave year ends on December 31, 2011 and anyone who retires after that date will lose any excess use-or-lose leave they have accrued.