Are you taking full advantage of the benefits available to you as a federal employee under the Federal Employees Retirement System (FERS)? In his final article in this three part series, the author discusses actions federal employees in the FERS system should take to best utilize the benefits available to them to prepare for a successful retirement.
The outlook for federal retirees and Social Security recipients for an increase in income in 2017 is bleak. For the average Social Security recipient, next year’s COLA increase is unlikely to be over $5.00 per month.
A series of actions are leading probable declines in the take home pay of federal retirees in 2017. Current federal employees, however, are on pace to see their largest pay increase since 2010.
The House Ways and Means Committee has not advanced a bill that would have reformed the Windfall Elimination Provision as it applies to Social Security benefits of federal employees.
Federal employees covered under CSRS Offset have special considerations when it comes to collecting Social Security in retirement. The author describes how this works and provides some real life examples based on a hypothetical scenario.
The latest annual report from the Social Security Board of Trustees estimates that there may be a 0.2% COLA for retirees in 2017.
The Social Security earnings test will affect any Social Security recipient from the age of 62 until they reach their Social Security Full Retirement Age (FRA). For every dollar earned above the earnings test amount, there is a reduction to an individual’s FERS Supplement or Social Security.
The author says that the discussion of Social Security has degenerated into a battle over the control of the meaning of words in which one person’s myth is the next person’s fact.