The Ultimate FERS Retirement Planning Resource Page

Jason Parker, RICP is the founder of Parker Financial LLC, an independent, fee based financial advisor and investment firm who operates as a fiduciary and serves clients nationwide. Jason helps FERS make the transition into retirement with comprehensive analysis of their FERS benefits and integrates those benefits into a retirement cash-flow plan. To learn more about Jason and his team visit Parker-Financial.net

Retiring from the Federal Government requires a thorough understanding of your federal benefits, and how those benefits will work in the context of an comprehensive retirement cash-flow plan.

We have conducted webinars, podcasts and collected resources from the web that you may find helpful as you prepare for retirement from federal service.

Podcast Episode:

Guest: Dan Jamison, CPA & Author of the FERS Guide
Topics Covered:
Should you take a survivor annuity? If so which option is right for you?
Deferred vs Postponed FERS Annuity
MRA +10
FEHB
Electing a FERS Survivor Annuity
Consideration for Federal Employees who are getting a divorce
FERS Retirement Eligibility
Premium conversion and paying FEHB with Pre Tax dollars
Special Category Employees

Podcast Episode:

Guest: Chris Kowalik – Founder of ProFeds
Topics covered:
Formula for estimating the Special Retirement Supplement or social security supplement
Use sick leave toward retirement pension
Buy back temporary time
qualifying for FEHB in retirement
Taxation of FEHB before and after retirement
FERS COLA’s vs FEHB Premium increases
FEHB & Medicare work together
Federal Long Term Care Plan
TSP Modernization and access to your money in retirement
Survivor Annuity considerations

Podcast Episode

Guest: Chris Barfield, CPA BarfieldFinancial.com
Topics covered:
Barbell Strategy
Inflation on medical expense vs COLA’s
TSP Pros & Cons
FEGLI cost savings considerations
FEHB & Medicare
Survivor Annuity Spousal Benefits

Previous Podcast Episodes:

148 FERS Updates with Dan Jamison
087 FERS Retirement Planning With Dan Jamison
059 FERS Guide with Dan Jamison

FERS Retirement Webinar Replay:

Links To Resources:

FEGLI:  Good article reminder for what is the difference between FEGLI Basic, A, B & C:

FEGLI: Rates increasing at 50 but double at 60:
https://www.fedweek.com/taxes-insurance/fegli-optional-coverage-gets-costly-after-age-50/

FEGLI Calculator: Use this calculator to show current cost and how they will change at age 60:

https://www.opm.gov/retirement-services/calculators/fegli-calculator/check-sheet/

https://militarypay.defense.gov/Benefits/Survivor-Benefit-Program/Costs-and-Benefits/Spouse-Coverage/

Reasons to keep money in the TSP vs Moving to an IRA:

https://www.barfieldfinancial.com/new-blog/should-i-transfer-my-tsp

Special provisions LEO, FF, ATC – Reduction in FERS Supplement

https://plan-your-federal-retirement.com/fers-supplement-for-special-provisions/

A great resource for answering many of your questions about retirement from FERS
https://www.usgs.gov/about/organization/science-support/human-capital/planning-retirement


POSTPONED vs DEFERRED Annuity

Postponed retirement means you have years of service plus minimum age and can qualify under MRA +10.  This allows you to postpone FERS Pension and still be eligible for FEHB and FEGLI when you start your retirement annuity.

Deferred retirement means you may have years of service.  Possibly 20 years of service but you have not met the minimum retirement age.  With a deferred retirement you are not eligible for FEHB or FEGLI when starting your retirement annuity.
https://www.opm.gov/retirement-services/fers-information/eligibility/
https://www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c042.pdf

Premium conversion means paying premium pre tax vs post tax.  This is default.  This comes into play when you have two Federal Employees and one will retire early.  The retired person could switch to the the person who is still working FEHB so that they continue to enjoy the tax benefits of paying health insurance we pre-tax dollars.  Here is a link to OPM that explains Premium Conversion.
Click Here

Currently, for duel federal employees, two self only FEHB policies are usually less expensive than self plus one.

Here is a great article by Chris Barfield, CPA where he explores if you should take a FERS survivor benefit.
https://www.barfieldfinancial.com/new-blog/fers-survivor-benefit-to-take-or-not-to-take

TSP Pros & ConsTSPIRA
Low FeesYesYes
Protected from LawsuitsYesNo
ROTH Conversion’sNoYes
Investment ChoicesLimitedAbundant
G FundYesNo
Fund Specific DistributionsNo Yes
Penalty Free Withdrawals for qualified retirees before age 59.5YesMaybe*
Qualified Charitable DistributionsNoYes
Mandatory 20% tax withholding on payments expected to last less than than 10 years.YesNo
SIPC InsuredNoMaybe**
Only withdrawal every 30 days with a $1,000 minimum. Yes***No
RMD Required from the ROTHYesNo
Spousal consent and notarized signature needed on withdrawals.YesNo
Limited trading window on interfund transfers – 12 noon EST cutoff time generally processed at close of business the same day.YesNo
Limited two interfund transfers per monthYesNo
* See information about Rule 72t
**What SIPC protects
*** You can get 24 withdrawals a year from the TSP. If you start a monthly installment plan, you get one payment a month. In addition to the installment, you can request a single payment, no more frequently than every 30 days, so technically, that can get you 24 payments a year with 12 of them scheduled as monthly payments.