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Should You Retire At Age 62?

One of the most frequent questions we’re asked is “what’s the right age for me to retire?”

Unfortunately, there’s not a one size fits all answer to this question.

There are many factors you should take into consideration when making this decision.

In today’s blog, we’ll discuss why many federal employees use 62 as the age that makes the most sense for them.

FERS Retirement

Age 62 is huge milestone as it relates to the FERS retirement calculation (assuming you have at least 20 years of service).

This calculation determines your annual FERS pension amount in retirement.

Prior to turning age 62, the pension formula is below.

High-3 Average Salary x 1% x Years of Service

However, when an employee turns 62 and has 20 years of service, the factor used in the calculation changes from 1% to 1.1%.

High-3 Average Salary x 1.1% x Years of Service

It might not look like a huge deal at first, but it makes quite a difference.

Essentially, it’s a 10% raise — for the rest of your life!

Social Security

Most federal employees are eligible to receive Social Security benefits at age 62.

There are important planning considerations when deciding to receive Social Security distributions.

Start too soon, and you receive a smaller benefit for the rest of your life.

Start too late, and you receive a larger benefit for a shorter time span.

An important side: if you retire from federal service at 62, or any age, you are not obligated to begin receiving Social Security at the same time. They are separate programs.

You can wait all the way until age 70.

And each year you wait, your benefit amount increases.

According to SSA.gov, in 2021, if you start receiving benefits at 62, your benefit will be around 29% lower than your full retirement age amount.

It makes sense to work with a financial professional and run a break-even analysis for your benefits.

Also be sure to take into consideration your spouse and their benefits.

COLA Adjustments

A COLA stands for “Cost of Living Adjustment” in retirement.

Over time, the prices of goods and services tend to rise.

The COLA attempts to keep pace with these rising costs by increasing your pension amount each year.

FERS and CSRS employees receive these adjustments each year — once they hit age 62.

For example, if you retired at age 59, you wouldn’t receive a COLA for the 3 years (ages 59, 60 and 61).

You would start receiving any COLA adjustment once age 62 is reached and every year thereafter.

At 62 and moving forward, your pension would be increased with each annual COLA adjustment, assuming the COLA for the year is not “0”.

Other Considerations

Each year you continue working, you keep receiving your annual salary and bi-weekly paycheck.

As a result, this will increase your Social Security benefit and often your FERS pension amount.

Typically, your highest earnings year are at the end of your career.

If you remember the formula from earlier (High-3 Average Salary x 1% or 1.1% x Years of Service) your High-3 will go up and you’ll receive an additional year of service.

All these contribute to a higher FERS pension — for life.

Conclusion

Like mentioned previously, everyone’s situation is unique.

We encourage you to sit down with a financial professional and go through your numbers.

The more you know, the more educated and informed decisions you can make.

Schedule your complimentary federal benefits review and retirement analysis here with a licensed insurance professional.

For additional information, you can also contact your friends at GPIS by calling 866-201-7829 or by sending an e-mail to info@gpis4u.org.

-Sam Wiss, RICP

By responding to this offer, you may be contacted by a licensed insurance and financial professional regarding life insurance and/or annuity products. Not affiliated with, or endorsed by, the federal government or any government agency.

TSP Online Calculators

The Thrift Savings Plan has some great online calculators to help you make informed decisions regarding your retirement balances inside the plan.

We’ll go through an overview of the TSP initially, and then talk through some of the more popular calculators online and how they work.

DISCLAIMER: The calculators are for informational purposes only and not meant to be the sole factor in determining retirement savings needs.

What’s the TSP?

The Thrift Savings Plan (TSP) is a tax-deferred retirement savings plan designed for federal employees and uniformed service members.

This defined contribution plan was first established by Congress in 1986.

It behaves like a private sector 401(k) plan.

The plan allows federal employees to save a percentage of their salary each pay-period.

How Do TSP Contributions Work?

TSP contributions are deducted from your paycheck each pay-period.

If you recently started working, enrollment is automatic.

Contributions will start at 5% of your salary.

You can work with your agency’s payroll to start, change or stop TSP contributions at any time.

Contributors to the TSP receive matching amounts from their respective agency.

The current matching percentage is the first 3% matches dollar for dollar.

The next 2% matches at 50 cents per dollar.

Contributions above 5% are not matched.

For 2021, the max contribution amount is $19,500 annually, or $26,000 annually if over age 50.

TSP contributions can be made with either Traditional (pre-tax) or Roth (post-tax) dollars.

TSP Calculator: How Much Will My Savings Grow?

Have you ever wondered how much your TSP balance will grow by the time you retire?

TSP’s website has a great estimator tool you can use to narrow down that amount.

Your inputs include:

• Your retirement system (FERS, CSRS, Uniformed Services, etc)
• Your existing balance and/or future contributions
• Your pay period and contributions
• Annual pay increases
• Expected rate of return

The results will show your estimated TSP balance at retirement.

Although it won’t be 100% accurate, this a great planning tool to help give you an idea of how much you might have to draw from when you hit your golden years.

TSP Calculator: How Much Can You Contribute To The TSP?

The IRS determines the maximum amount you can contribute to plans like the TSP each year.

This is referred to as the IRS elective deferral limit.

After reaching age 50, you’re also entitled to what are called “catch-up contributions.”

Like we said previously, for 2021, the max contribution amount is $19,500 annually, or $26,000 annually if over age 50.

Knowing this information, you can determine how much you might want to deduct each pay period to max out your contributions.

It’s a good idea to make sure you don’t miss out on any agency matching contributions.

The inputs on TSP’s website include:

• The year you’re contributing towards
• If you’ve reached age 50
• Any dollar amounts already contributed for the year

The results will show the amount you’ll want to contribute for each remaining pay period if you’d like to maximize your contributions.

Other Calculators on TSP’s Website

The other available calculators to you include…

Contribution Comparison Calculator: estimates how your paycheck is affected between Traditional or Roth TSP contribution amounts.

Annuity Payment Calculator: estimates the amounts you would receive if purchasing a life annuity using your TSP account balance.

Estimate Loan Payments: estimates the amount your loan payment would be if you borrowed from your TSP account balance.

Conclusion

As we said previously, the TSP is one leg, of the 3-legged stool of retirement for many federal employees.

The other two include your FERS or CSRS pension and Social Security amounts.

It’s important to take all these income sources into consideration as you look at your upcoming retirement.

Our financial professionals can help you build a retirement income plan today.

Schedule your complimentary federal benefits review and retirement analysis here with a licensed insurance professional.

For additional information, you can also contact your friends at GPIS by calling 866-201-7829 or by sending an e-mail to info@gpis4u.org.

-Sam Wiss, RICP

By responding to this offer, you may be contacted by a licensed insurance and financial professional regarding life insurance and/or annuity products. Not affiliated with, or endorsed by, the federal government or any government agency. This information is being provided only as a general source of information and is not intended to be the primary basis for financial decisions. It should not be construed as advice designed to meet the needs of an individual situation.

Market Volatility

Have you ever found yourself wondering if you should re-allocate your investments during periods of market volatility?

Maybe you think the market’s too high.

“It can only go down from here” you say to yourself.

Or maybe the market’s been down for a few days in a row.

You think it’s obvious.

You watch the news every night and the experts say “It’s only going to get worse.”

So – does it make sense to make changes to your allocations?

Investing For The Long-Term

Imagine you had to drive from New York City to Los Angeles.

At the beginning of your journey, you’re in downtown Manhattan.

And you find yourself stuck in traffic.

It’s bumper to bumper.

Inching along.

Bicyclists are whizzing by you.

You find yourself frustrated.

So you jump out of your car, and you decide to sell it on the spot.

And you sell it at a ridiculously low price.

Then you buy a bicycle to continue your trip to the West coast.

As crazy as this sounds, people do it every day.

They let emotions get involved.

And they make short-term decisions when they’re on a long-term journey.

Keep your time horizon in mind.

And stick with the vehicle that will take you to your destination — whatever that might be.

There might be times along the way when other vehicles might look like the better choice.

But remember to keep your eye on the prize.

Summary

We aim to take emotions out of the equation and help you make smarter, educated and more informed decisions when it comes to your retirement.

Contact us today to learn other tips and strategies to make sure your money lasts in retirement.

Schedule your complimentary federal benefits review and retirement analysis here with a licensed insurance professional.

For additional information, you can also contact your friends at GPIS by calling 866-201-7829 or by sending an e-mail to info@gpis4u.org.

-Sam Wiss, RICP

By responding to this offer, you may be contacted by a licensed insurance and financial professional regarding life insurance and/or annuity products. Not affiliated with, or endorsed by, the federal government or any government agency.

Do us a favor…

Think back.

When was the last time you had a question about one of your federal benefits?

Did you know who to ask?

Your manager?

Your co-worker?

Your HR department?

OPM?

Look no further, we’re here to help.

We work with federal employees like you every day.

That means we see mistakes relating to federal benefits & retirement every day.

We want to help you avoid some of the most common ones.

Mistake #1: Expecting A Pension Right When You Retire

During your working career as a federal employee, you received a paycheck every two weeks.

You might assume your first full pension check will come two weeks after the day you retire.

Unfortunately, that generally isn’t the case.

OPM’s processing times vary, depending on the time of year.

Especially early in the year (January – March) OPM can get back-logged with paperwork.

Approximately two weeks after you retire, you’ll receive what’s called an “interim check.”

These checks are typically around 80% of your estimated pension amount.

Included in this “interim check” will also be a one-time payment for your annual leave.

Once OPM finishes your file, you’ll starting to receive the full pension you’ve earned.

At this time, you should also receive a “catch-up check” included with your first pension payment.

This “catch-up” check includes the difference between your interim checks and what your full pension checks would’ve been.

How to Plan Ahead

It might be a good idea to keep cash on hand to cover the difference between your interim checks and your full pension amount.

Consider letting your HR or supervisor know you plan to retire a year in advance — it’s possible they’ll use this time to start auditing your file and get the ball rolling, which can help speed up the process.

Plan to start the actual retirement process & paperwork at least 3 months in advance.

This will help allow OPM enough time to process everything.

Mistake #2: Spouses Losing Health Insurance

Your health insurance is one of the benefits you have as a federal employee.

As you know, health insurance can be expensive.

And historically, costs have continued to rise.

There’s good news, though.

You can keep your Federal health insurance in retirement as long as you had coverage for at least five years immediately preceding retirement AND you’re retiring with an immediate pension.

You must also have FEHB coverage the day you retire.

Your spouse can also remain on your Federal health insurance.

On this topic, there’s one extremely important item many federal employees overlook.

If you pre-decease your spouse, they can continue coverage only if you elected a survivor benefit with your FERS pension.

You’ll make this decision as part of the retirement process.

How To Plan Ahead

Make sure you understand this rule!

Be aware of the five-year rule for federal employee health care coverage in retirement.

And, if you want your spouse to continue coverage after your death, ensure you have either the Minimum or Maximum Survivor Benefit elected for your FERS pension.

Mistake #3: Not Creating A Retirement Budget

As you near retirement, you should have a good idea on the amount you’ll receive from your pension, Social Security, TSP and other income sources.

You should also know exactly how much you’re spending each month.

Unfortunately, many people don’t stick to a strict budget.

They have a vague idea of their income and spending habits.

If you haven’t already, we suggest listing out all of your expenses.

This would include things like your house payment, car payment, cable & internet, grocery bills, cell phone bill, etc.

By knowing your expenses, or outflows, you’ll gain an understanding of how much you need every month to live.

This becomes important, because one of the main objectives to consider in retirement is making sure your money lasts.

How To Plan Ahead

Create a retirement budget with your income sources and all your expenses.

Then, consider trying to live off your retirement budget during the year before you actually retire.

This will give you a good idea on whether or not your current income sources and withdrawals will provide you with enough money each month.

Continue looking forward and think of ways you can adjust your spending habits if needed based on factors that could affect your retirement income.

Summary

Contact us today to learn other tips and strategies to help make sure your money lasts in retirement.

Schedule your complimentary federal benefits review and retirement analysis here with a licensed insurance professional.

For additional information, you can also contact your friends at GPIS by calling 866-201-7829 or by sending an e-mail to info@gpis4u.org.

-Sam Wiss, RICP

By responding to this offer, you may be contacted by a licensed insurance and financial professional regarding life insurance and/or annuity products. Not affiliated with, or endorsed by, the federal government or any government agency.

How The Cost of A Postage Stamp Affects Your Retirement

Think about the last time you bought a book of stamps.

In 1983, it used to cost to you 20 cents to mail something.

In 1999 it was 33 cents.

In 2011 it was 44 cents.

In 2021, the cost of a postage stamp is 55 cents.

That’s a 25% increase in the last ten years alone.

Think about that.

And now apply it to every aspect of your day-to-day life.

The cost of goods and services 30 years ago is a lot different (and more expensive!) compared to what they cost today.

What’s one of the reasons?

Inflation.

Inflation’s Effect On Your Retirement

The cost of every-day goods and services tend to rise over time.

In fact, some inflation can actually be positive since it can drive economic growth,

But, if the economy sees too much inflation, your purchasing power can be lowered.

When you think about your upcoming retirement, you might have enough saved to retire today, at today’s prices.

It’s important to also consider how your retirement savings will last throughout retirement.

Some federal employees may not consider inflation when planning for retirement.

Sure, you want to try and protect what you’ve saved.

And you want to ensure your retirement savings are keeping pace with inflation.

You also want to make sure you’re considering keeping up with the cost of every-day life.

Fortunately, your FERS or CSRS pension and Social Security have cost of living adjustments built-in.

How to Manage Inflation’s Negative Impact

Now, while you can’t directly influence inflation, there are steps you can consider to help combat the negative effects.

First, you can try to reduce your daily living expenses.

Examples could include downsizing your residence to switching to a less expensive cable and internet package.

By living in a smaller home, you could reduce your energy costs (and hopefully the mortgage, insurance and property taxes).

According to the US Bureau of Labor Statistics, the cost of energy saw the largest percentage increase over the last twelve months, as of March 2021.

Bottom Line: any expenses you can reduce is likely more money in your pocket for the long-term.

You also want to ensure you’re keeping pace with inflation with the money you’ve saved.

It might be a good idea to think about inflation and how it may impact your retirement strategy.

Contact us today to learn other tips and strategies to make sure your money lasts in retirement.

Schedule your complimentary federal benefits review and retirement analysis here with a licensed insurance professional.

For additional information, you can also contact your friends at GPIS by calling 866-201-7829 or by sending an e-mail to info@gpis4u.org.

-Sam Wiss, RICP

By responding to this offer, you may be contacted by a licensed insurance and financial professional regarding life insurance and/or annuity products. Not affiliated with, or endorsed by, the federal government or any government agency.

Congratulations!

You’re one year away from every day being Saturday.

Here’s a few steps to consider at this point.

Review Your Income Streams and Withdrawal Strategies

Our “5-Year Out” blog post covered income streams and withdrawal strategies.

Please re-read that if you haven’t already.

At this point you’ll want to consider reviewing your income streams.

Ensure the amounts you calculated are still accurate.

This will help alleviate any surprises after separating from service.

You can request an annuity estimated, or work with one of our dedicated professionals for assistance on your personal situation.

Try Living On Your Retirement Budget

We’ll assume you already created your retirement budget. If you need a good budgeting worksheet, you can use ours here.

And you should have a good idea of the income amounts you’ll receive monthly.

Now, it could be helpful to try and live on your new budget for a few months.

You’ll soon realize if the budget you’ve set is realistic or not.

If it isn’t, consider how you can adjust to better meet your spending habits.

Research Medicare and Start Planning Ahead

It’s important to sign up for Medicare when you’re eligible to avoid the late enrollment fees.

Make sure you review your current health coverages and any associated costs.

Try to identify any gaps in coverage.

A large medical expenses could derail your retirement budget.

Order Your Retirement Packet

Three months before you retire make sure you complete your retirement packet.

It takes OPM between two and three months, on average, to process your paperwork.

You might avoid delays by staying ahead of this and getting your paperwork in on time.

If you know you’re going to retire ahead of time, you can also let your HR know in advance.

A good HR team will help speed along the process.

Consider Required Minimum Distributions

Required minimum distributions are amounts you must withdraw from any qualified accounts you have, beginning at age 72.

Long story, short…

You’lve been deferring taxes on these accounts, but will need to begin paying them on withdrawals (the withdrawals are required by law).

If you don’t take your RMD, you could face steep penalties.

If required withdrawal amounts are not met, it’s taxed at 50%.

Other Items

Now is a good time to meet with your personnel office once again to review your OPF folder; double check all the records are accurate and complete.

You can also take a few minutes to ensure your beneficiary designations are up to date.

Stay In Touch With Your Financial Professional

Make sure you’re staying in touch with your financial professional.

They’ve been there, and they can help guide you in the process.

We recommend semi-annual meetings, at least.

Ensure you keep them informed of any changes to your situation and circumstances.

Schedule your complimentary federal benefits review and retirement analysis here with a licensed insurance professional.

For additional information, you can also contact your friends at GPIS by calling 866-201-7829 or by sending an e-mail to info@gpis4u.org.

-Sam Wiss, RICP

By responding to this offer, you may be contacted by a licensed insurance and financial professional regarding life insurance and/or annuity products. Not affiliated with, or endorsed by, the federal government or any government agency.

Preparing For Retirement 5 Years Out

When you’re five years from retirement, it becomes even more important to take the appropriate steps to ensure your retirement strategy is successful.

Determine your retirement income streams

At this time, you should start piecing together your income streams. For most Federal employees, the three components of retirement income will be your FERS or CSRS pension, Social Security payments and Thrift Savings Plan.

Reach out to OPM to receive your estimated FERS pension amounts or work with us to calculate what it will be — we can also point you in the right direction for an estimated amount.

You can find estimated Social Security amounts by visiting Social Security’s website. Your statement will show your estimated benefits at age 62, Full Retirement Age, and age 70.

Your Thrift Savings Plan will also serve as an additional source of income.

Your options at retirement include cashing out your full amount, leaving the funds in TSP, transferring to an IRA, or selling your account value for an income stream.

Determine your retirement income withdrawal strategy

There are three main types of retirement withdrawal strategies.

There is no right or wrong answer, and each method has pros/cons.

We want to be clear – we are not making and recommendations here, simply discussing potential strategies.

• Systematic withdrawal method

This first we’ll discuss uses systematic withdrawals for retirement income.

With this method, you use a safe withdrawal rate you determine.

Typically it’s anywhere from 2-6%.

Many experts agree on 4% being ideal.

Your specific withdrawal percentage depends on your risk tolerance, time horizon and investment returns.

You sell off a diverse mix of your investments to generate necessary income from your portfolio.

Then, annually, you can rebalance your portfolio and adjust your withdrawals for inflation, taxes, market movements and other factors.

It’s important to take into consideration other income sources (Social Security amounts and your FERS pension) to determine the correct withdrawal percentage.

• Bucketing method

Bucketing for income uses buckets, or groups of investments that are set aside at different time horizon for spending needs.

The first bucket includes investment that are safe, conservative, and easy to liquidate.

The second bucket includes investments that are slightly longer term, and they don’t typically have full market exposure.

The third bucket is any long-term investment that you, ideally, won’t touch for at least ten years.

Below is an overview of the types of investments you might see in each bucket.

1^st bucket = 0-5 Years

Cash, Money Market, Short-term annuities, Bonds, CDs, Social Security, FERS pension amounts

2^nd bucket = 5-10 Years

Bonds, Fixed Indexed Annuities, Balanced Mutual Funds

3^rd bucket = 10+ Years

Mutual Funds, Growth Stocks, Real Estate, Commodities, Long Term Investments

• Flooring method

The flooring method breaks down your retirement spending into “needs” and “wants.”

For all “needs” you should have a guaranteed income source, or floor, to cover this amount.

Guaranteed income streams would include your FERS pension, Social Security and external annuities or pensions.

For all “wants” or discretionary expenses, most people choose to invest into riskier securities and investments.

The flooring method is simple.

And it ensures all necessary items are covered by a guaranteed income source.

Conduct a Life Insurance Needs Analysis

If you already have life insurance, such as FEGLI or group life insurance with the Federal system, make sure you understand how the costs may vary as you age.

Consider doing a needs-analysis to determine the amount of life insurance cover you’d like to have.

We have a calculator that’s extremely simple to use — and it’ll help you determine how much coverage you should have.

FEHB Health Insurance

Arguably one of the best benefits you have as a federal employee is health insurance.

If you’d like to continue the coverage in retirement, you need to be in the federal system for at least five continuous years.

You might want to consider electing coverage if you’re not already covered, which could be beneficial in your retirement strategy.

Put Together A Will, Trust Or Estate Plan

At this time, it makes sense to get together with an estate planning attorney.

You want to ensure you have everything in place should the unexpected happen.

Questions To Ask Yourself

Are my beneficiaries updated?

Who do I want to manage my affairs?

Do the right individuals have access to my important papers and do they have the passwords for my individual accounts? (we’ve linked our simple document you can use).

Has my living situation changed and does it make sense to make changes to my retirement strategy?

All of this can feel overwhelming to you.

And the earlier you get started, the better.

Schedule your complimentary federal benefits review and retirement analysis here with a licensed insurance professional.

For additional information, you can also contact your friends at GPIS by calling 866-201-7829 or by sending an e-mail to info@gpis4u.org

-Sam Wiss, RICP ®

By responding to this offer, you may be contacted by a licensed insurance and financial professional regarding life insurance and/or annuity products.

Why Dave Ramsey Is Wrong About The TSP

Think back to the last time you needed a new car.

Did you consider buying or leasing?

If you did, you probably went through the pros and cons in your head.

How long am I going to keep this car?

Am I going to put a lot of miles on the car?

Do I want to buy brand-new or something used?

Am I going to pay cash or will I finance?

Do I have a car I’m going to trade in?

Every person who goes out and gets a new car is in a unique situation, specific to only them.

What works for you might not work for someone else.

It doesn’t always make sense for someone to buy a two year-old car with low miles.

That’s why we have an issue with a one-size fits all approach to any finance related area in your life.

Ramsey’s Thoughts On The TSP

Have you ever heard of Dave Ramsey?

He’s one of the most popular figures in personal finance today.

Awhile back on his radio show, Dave spoke about the Thrift Savings Plan.

And he gives some TSP guidance on his website.

If you don’t know Dave, he hosts a radio show and takes listener questions.

So as you can imagine, the advice he gives is blanketed.

Dave tries to give the best advice “in general” or the advice that would work well for the majority of his listeners.

Ramsey’s Recommended TSP Allocations

On Dave’s website, he lists the following recommendations for your TSP allocations.

80% – C Fund (Common Stock)

10% – S Fund (Small Cap Stocks)

10% – I Fund (International Stocks)

First, we want to say, that might be great advice… if you’re a younger employee and you have time on your side.

However, it’s an aggressive allocation.

You have the potential for higher returns, but also the potential for larger losses.

What if you’re a year or two away from retiring?

Does this still make sense for you?

Can you afford a 30% loss to your portfolio if that market corrects?

Unlikely.

You might not have time on your side to make up what you’ve lost.

How Much It Takes To Recover From Portfolio Loss

Most federal employees don’t realize what it takes to recover from a large loss close to retirement.

From 2007 to 2009 the S&P 500 Index lost 57% of its value.

Do you know what it would take to recover from that loss and get back to even?

Most people say a 57% return the following year.

Not quite.

It would actually take a 133% return to get back to where you started.

If you’re close to retirement, often times it makes sense to shift your allocations and investments to a more conservative strategy.

Or at least something that’s in-line with your personal risk tolerance.

Final Thoughts

Make sure the advice you read about is tailored to you and your situation.

Don’t always take blanketed advice from some “guru” on the internet.

It might not be right for you.

If you’d like to learn more about your TSP options in retirement, contact us today.

Schedule your FREE federal benefits review and retirement analysis here.

For more information, you can contact your friends at GPIS by calling 866-201-7829 or by sending an e-mail to info@gpis4u.org

When’s the right time to retire for you?

One of the most important decisions you’ll make as a federal employee is when to retire.

You’re probably familiar with the standard guidelines for retirement eligibility.

1. Minimum Retirement Age + 30 years.
2. Age 60 + 20 years.
3. Age 62 + 5 years.

But what if you wanted to retire under a VERA?

What if you wanted to retire before meeting the eligibility guidelines?

Do you know how much your numbers are reduced?

Do you lose any of your benefits?

These are all valid questions.

And once you decide it’s time to retire…

Do you know what to expect?

Do you know how your benefits change when you hit retirement?

There’s tons of information available online.

And you’ve probably talked to your co-workers.

But how can you be sure the answers you receive are the right ones?

OPM is a great resource, and they do a great job.

But they aren’t licensed to give you advice.

They simply inform you of how your options work.

Our specialists work with thousands of federal employees just like you every year.

In our virtual reviews, we cover all the topics you have questions about.

There is rarely anything that stumps our team.

Contact us today to schedule your complimentary federal benefits review.

We will work with you to find the best time that fits your schedule.

Even if it’s during the evening or on the weekend.

In the review, you can remain in the comfort of your living room.

And afterwards, you will get your own personalized benefits workbook you can keep.

During your review we’ll cover the following topics:

-The dates an employee becomes eligible to retire & the different types of retirement options.

-The best days of the month to retire and why.

-TSP options in retirement and how the plan works.

-How survivor benefits work and things to consider when selecting the benefit.

-How much you’ll receive in retirement for your pension and how it’s calculated (FERS & CSRS).

-If you’re eligible for a FERS special supplement and how the benefit is calculated.

-How CSRS Offset works and how the benefit is calculated.

-How military buy-backs work and how they affect retirement eligibility.

-All your retirement income sources combined

But don’t take our word for it.

You can read our reviews from the Better Business Bureau and Google.

We look forward to working with you soon!

Click here to schedule your free benefits review.

Or, sign up for our next online webinar.

You can also call us at 866-201-7829 or send an email to info@gpis4u.org.

-Your Friends at GPIS Employee Benefits Specialists

Annual Leave

An employee can use annual leave for vacations, relaxation, personal business use and emergencies. Annual leave must be scheduled and approved by a supervisor prior to commencing. Employees should always request annual leave in a timely manner to ensure proper planning and scheduling with their supervisor.

Annual Leave Accrual Rates for Employees

Annual leave accrual is based on time of service within the federal government. A new, full-time employee will earn 4 hours per 80 hours (two-weeks) worked. This is approximately 13 days of paid annual leave per year. After gaining tenure, the amount of leave earned increases. You can see the table below, per OPM, on years of service and leave amounts granted per year.

Annual Leave Carryover

For most federal employees, 30 days is the maximum amount of annual leave that can be carried over into the new leave year. There is a “use or lose” provision. Any leave that hasn’t been used, and is above and beyond the ceiling allowed, will be forfeited.

Annual Leave Payouts at End of Career

At the end of their career, federal employees will receive a lump-sum payment for any accumlulated leave time. Typcailly, they are paid out at the employees’ hourly salary rate.

Transfer of Annual Leave

On OPM’s website, “a covered employee may donate annual leave directly to another employee who has a personal or family medical emergency and who has exhausted his or her available paid leave. Each Agency must administer a voluntary leave transfer program for its employees.”

Typically, there is not limit on the amount.

If you would like to inquire about either receiving or donating leave time, check with your supervisor and/or agency on the specific details for the program. Ultimately, your employing agency will approve or deny the application.

Sick Leave for Federal Employees

Federal employees are entitled to use sick leave for personal medical needs, family care or bereavement, care of a family member with a serious health condition, and adoption related purposes.

Sick Leave Accrual Rates for Employees

Per OPM’s website, the following accrual rates are applicable for full time, part time and tours of duty.

Sick Leave Carryover

There is no limit to the amount of sick leave a federal employee can accumulate.

Sick Leave Use at End of Career

At the end of a federal employees working career, sick leave can be used towards year and months of service purposes. However, it’s important to note that sick leave cannot qualify employees for retirement eligibility based on years of service. Only after the thresholds have been reached can sick leave add to years of service computation time.

Make sure you don’t lose those sick days. Work with one of our specialists to determine how to maximize your sick leave, while also not leaving and days on the table.

COVID Leave

Due to COVID-19, check with your agency on your leave options. Due to COVID-19, if you have been unable to work due to circumstances resulting from COVID, you may have additional leave time available. Also, if you’ve been unable to take time off due to working long hours (being short-staffed due to COVID) you may have additional leave carried over.

Interested in learning more about YOUR leave numbers?

Schedule your FREE federal benefits review and retirement analysis here.

For more information, you can contact your friends at GPIS by calling 866-201-7829 or by sending an e-mail to info@gpis4u.org

-Sam Wiss, Retirement Income Certified Professional (RICP ®)