FERS

Narayan

New Member
I have some family in the civil service, but they are under the old CSRS, so i was wondering what you could tell me about FERS. Is it crap like i hear, and also is it dependent upon the markets. Anything you could tell me would be helpful, thanks.
 

Raydon

New Member
if you rely on everyone else's opinions to construct your own without looking at the cold hard facts.. well.. look at what the stock market's doing..

I'm not saying this in an insulting way.. but.. you'll never really KNOW what to say for or against without having looked at both sides yourself.

taking the time to do that, however.. is boring. (Ask me if I actually googled it to do research.. (the answer is no) so I can't really say bashing you is justifiable.. as much as I would like to (purely out of fun and humor of course)

I'm just making note of the irony of trying to convene a council of ordinary folks to get a general consensus as to whether or not it's good because.. well.. $$ and job security will always = good in our book. Anything that limits that? bad.

needless to say I'd bet 10,000 Indian Rupees that the new guidelines are stipulated and contorted beyond recognition.. but keep in mind I haven't even looked at anything myself.

but now that we're on the topic and I'm interested.. I think i'll start looking at it.

furthermore.. and more importantly at that.. keep in mind that there are going to be a LOT of changes after the bush administration is gone.. so it may not even be worth worrying about all too much right now..
I already know of some AWESOME future changes to veteran care and benefits that'll make any vet goo his pants. (I work at a veteran service office) yay free stuff!

opinion threads = attention threads = flame threads = bunk anyway

so... WHOOOOOOOHOOOOOO
 

K-Dog

New Member
I was checking out a FERS calculator assuming 30 years of employment, and if it is accurate, it actually kind of blows. The way it reads you will only get about 30% or 1% per year of service, compare that with the average cop in California and a lot of them get 3% at 50 so after 30 years they would get 90% retirement. Major difference.
 

wve_iii

New Member
You get 1.7% for every year actually working traffic for the first 20 years and then 1% per year thereafter. so if you are hired at say 26 and work to 56 you would get.

1.7% * 20 = 34% ; 1% * 10 = 10% ; 34% + 10% = 44%

Your final percentage will be of your high three and it will increase annually for inflation.

You also get a Special Social Security Supplement to supplement your social security until you reach minimum age, mine is like 62.

You also get matched 5% that goes into TSP (aka 401k). Average rates of return are very competitive.

www.tsp.gov

www.fedcalc.gov

http://www.opm.gov/RETIRE/html/library/fers.asp

So all total you will retire at well above 50% with all three of these added together. True the market will determine what your TSP outcome will be but if you wanted to be secure you could put it all in the "Gfund" which I think is guaranteed to get like 4-5% per year.
 

K-Dog

New Member
Well that actually sounds really good. I am glad to hear that the calculators were off, as they were more like 30% as opposed to 44%. that is a big difference. Also the TSP sounds great. Nothing like working for the government with a government pension and getting a "401k" type investment as well. Also, being adjusted for inflation is way better than a few extra percent up front.
 

coops2k

New Member
it can be very good.

At the min, put in the amount that gives you the gov matching.

If I had to do it over again, I would put as much as I could into the the plan (did that) and then I would take another 5% or more and invest outside of the FERS system. That way, when you retire at 56 or earlier, you have a nice bit of money you can get to, without any worries, and then at 59.5 when everything else kicks in, you should have a very nice income.

This is just an overview and there is a lot more too this, but it is my $0.02
 

ATC RET 2003

No More Vectors
TSP is one of the few truly "good deals" that I encountered during my FFA career... I don't know all the particular differences between FERS and CSRS (which I was) as it relates to TSP, but I started making the maximum allowable contributions from the git go. It turned into a nice chunk of change.
 

ATC Hopeful

New Member
The only downfall for me is that my current employer matches 100% up to 6% of my salary(including overtime). I read somewhere that the FAA matches 100% up to the first 3%, and 50% for the next 2%. Someone correct me if i am wrong, but over a 33 year career, that can make a pretty big difference in the total amount invested.
 

uva212

New Member
The FAA will actually match you dollar for dollar up to 4%...the federal government will match you dollar for dollar 1%...so total you get matched 5% total.
 

esw2005

Well-Known Member
The FAA will actually match you dollar for dollar up to 4%...the federal government will match you dollar for dollar 1%...so total you get matched 5% total.

That is not what http://www.tsp.gov/features/chapter04.html says.

First, when you become eligible for agency contributions, your agency will automatically contribute to your TSP account an amount equal to 1 percent of your basic pay each pay period. These are your Agency Automatic (1%) Contributions. You will receive these contributions whether or not you contribute your own money to your TSP account.

Second, if you are contributing to your TSP account, your agency also makes Agency Matching Contributionsonce you are eligible for them. If you do not contribute your own money, you will not receive Agency Matching Contributions. Matching contributions apply to the first five percent of pay that you contribute each pay period. Your contributions are matched dollar-for-dollar on the first three percent of pay you contribute each pay period and 50 cents on the dollar for the next two percent of pay. Your agency will not match the contributions that you make above five percent of your pay. However, you will still benefit from before-tax savings and tax-deferred earnings on those contributions
 

HiDef

New Member
That is not what http://www.tsp.gov/features/chapter04.html says.

First, when you become eligible for agency contributions, your agency will automatically contribute to your TSP account an amount equal to 1 percent of your basic pay each pay period. These are your Agency Automatic (1%) Contributions. You will receive these contributions whether or not you contribute your own money to your TSP account.

Second, if you are contributing to your TSP account, your agency also makes Agency Matching Contributionsonce you are eligible for them. If you do not contribute your own money, you will not receive Agency Matching Contributions. Matching contributions apply to the first five percent of pay that you contribute each pay period. Your contributions are matched dollar-for-dollar on the first three percent of pay you contribute each pay period and 50 cents on the dollar for the next two percent of pay. Your agency will not match the contributions that you make above five percent of your pay. However, you will still benefit from before-tax savings and tax-deferred earnings on those contributions
Here is how it comes out on my LES,

Under deductions:

Thrift Savings Plan---------------$87.64 (This is 5% of my base that I contribute)

Under Benefits Paid By Gov't:

TSP Matching--------------------$70.11
TSP Basic------------------------$17.53

Does that help?

HD
 

Barty

Well-Known Member
The FAA will actually match you dollar for dollar up to 4%...the federal government will match you dollar for dollar 1%...so total you get matched 5% total.
I've had some companies that do better, but not by much. My current company only matches 50% for the first 3 years of employment and only goes up to 75-80% if you stick around long enough. Even then, it is only the first 6% of your income invested in the 401k. All things said, that's really not a bad deal, particularly if you get that on day one.
 

bosox1207

New Member
Here is how it comes out on my LES,

Under deductions:

Thrift Savings Plan---------------$87.64 (This is 5% of my base that I contribute)

Under Benefits Paid By Gov't:

TSP Matching--------------------$70.11
TSP Basic------------------------$17.53

Does that help?

HD
When does the Gov't start contributing? I'm a student at the Academy and I contribute 5% to the TSP, and I don't see anything on the bottom of my LES under "Agency Contributions".
 

HiDef

New Member
When does the Gov't start contributing? I'm a student at the Academy and I contribute 5% to the TSP, and I don't see anything on the bottom of my LES under "Agency Contributions".
Wala!
If you were hired:
Your Agency Contributions
will begin the first
full pay period in:

June 1, 2006 — November 30, 2006

June 2007

December 1, 2006 — May 31, 2007

December 2007

June 1, 2007 — November 30, 2007

June 2008

December 1, 2007 — May 31, 2008

December 2008

June 1, 2008 — November 30, 2008

June 2009
 
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