For Federal Employees: Request Your Pension Benefit
Even If You Don’t Plan to Retire Any Time Soon
With reports continuing about the tens of thousands of federal employees scheduled to retire over the next few years the workload of OPM is expanding rapidly. Federal employees and their planner are beholden to the OPM’s pension calculations when making important financial, retirement or job decisions. Whether it is a health event, change of mind, real estate transaction, or private sector job opportunity there can be a variety of reasons to move on from federal employment without as much notice as anticipated. To stay on top of important benefits for both accuracy and planning purposes it is recommended to get a pension estimate for your files. This calculation allows you to verify all of your service credits are accounted for and to get an idea of how you stand regarding retirement. You might be surprised how much income you can count on based on your work record, especially when combined with Social Security.
When requesting this annuity calculation, there are a few items to keep in mind. First, ask for an estimate of future benefits when you plan to retire, and a few years prior for reference to its growth for deferring. There are scenarios other than retirement you may consider. What would the income payment be should you become disabled tomorrow? Or what would your spouse receive if you were to pass away? Can you purchase service credits for prior employment related to your federal job? What is the special retirement supplement and does it apply to you? Keep in mind this FERS pension income stream is separate from what you withdraw from your TSP balance, and Social Security if you are eligible. What all of this amounts to, especially when accounting for a spouse’s payments if present, and what tax environment this may cause, require quite a bit of planning. OPM is available at email@example.com or 888-767-6738 or through your accustomed human resources contact. If you want to discuss a financial scenario, have a question or are looking to see if you are on track for your retirement, give us a call and we would be happy to meet without obligation to see how we can help.