72(t) and other stuff: 1811 with 9 years to go...

[n4866b]

Me: GS-1811-13-07 with 25 year retirement at age 48.

Hi everybody. A question to the FERS 6(c) and ATC folks, especially those retired...

can you post your FERS Annuity Supplement calculations/actual amounts.

Discussed here

http://www.opm.gov/retire/pre/fers/annuitysupp.asp

This is not the Metlife annuity we typically associate to "annuity" stuff.

I have tried to calculate mine but I am either retarded or the complication is beyond my skill level. This is why I am not employed at NASA....

The amount should be 10,000-12,000 a year I am told.

But I wanted "real world" amounts from the field....

Also, what % of pre-retirement income/salary are you guys seeing once retired ?

Reason I ask is that I have "other things to do" such as kids baseball games, fishing, etc and plan on pulling the plug once I am eligible.

I am considering TSP to IRA transfer then 72(t) payments once I retire. Comments ?

Thank you

 

[Kaufmanrider]

Me: GS-1811-13-07 with 25 year retirement at age 48.

Hi everybody. A question to the FERS 6(c) and ATC folks, especially those retired...

can you post your FERS Annuity Supplement calculations/actual amounts.

Discussed here

http://www.opm.gov/retire/pre/fers/annuitysupp.asp

This is not the Metlife annuity we typically associate to "annuity" stuff.

I have tried to calculate mine but I am either retarded or the complication is beyond my skill level. This is why I am not employed at NASA....

The amount should be 10,000-12,000 a year I am told.

But I wanted "real world" amounts from the field....

Also, what % of pre-retirement income/salary are you guys seeing once retired ?

Reason I ask is that I have "other things to do" such as kids baseball games, fishing, etc and plan on pulling the plug once I am eligible.

I am considering TSP to IRA transfer then 72(t) payments once I retire. Comments ?

Thank you

Not retired, but close (LEO) to my 25 years. That is if I decide to go.

You are talking the Social Security Supplement. I can give you a rough gestimate formula. It was given to me at a retirement seminar recently.

Take your annual statement you get from Social Security and look at the dollar amount you will get if you worked to age 63.

Then take your number of years worked-25, and divide by 40. I am told 40 is the anticipated number of working years a person will have.

Take that percentage 0.625 or 62.5% and that is the percentage of your age 63 Social Security amount you will receive annually from OPM until you turn 63 and Social Security pays you your full amount.

As to your other question, I am guessing I will get about 46% of my base pay when I go. 25 years LEO, (20 years at 1.7%, 5 years at 1%) 6 years military (6%) and a year of sick leave (1%) to cash in (full value January 1, 2014).

Hope this helps.

 

[Texarkandy]

Me: GS-1811-13-07 with 25 year retirement at age 48.

Hi everybody. A question to the FERS 6(c) and ATC folks, especially those retired...

can you post your FERS Annuity Supplement calculations/actual amounts.

Discussed here

http://www.opm.gov/retire/pre/fers/annuitysupp.asp

This is not the Metlife annuity we typically associate to "annuity" stuff.

I have tried to calculate mine but I am either retarded or the complication is beyond my skill level. This is why I am not employed at NASA....

The amount should be 10,000-12,000 a year I am told.

But I wanted "real world" amounts from the field....

Also, what % of pre-retirement income/salary are you guys seeing once retired ?

Reason I ask is that I have "other things to do" such as kids baseball games, fishing, etc and plan on pulling the plug once I am eligible.

I am considering TSP to IRA transfer then 72(t) payments once I retire. Comments ?

Thank you

I retired as a FERS "6c" (technically it's 12d for FERS) 1811-13 with 25 years LEO time + 4 years of bought back military. My supplement is $997.

Nobody at my agency knew exactly how it is calculated either, so after I retired I asked OPM for a copy of the actual calculation & found out it's quite a bit more complicated than the other poster suggested trying to figure it off of your annual SS statement. (note: they only use your SS contributions during your FERS years in the calculation - SS contributions from any military or civilian employments are not counted - there are other factors in the calculation as well)

I think it would be very difficult to figure out for yourself & I never found any online retirement calculator that will figure it for you.

 

[jpcavin]

See if the below link is of any help..
http://federalretirement.net/fers_annuity.htm

 

[Texarkandy]

...
As to your other question, I am guessing I will get about 46% of my base pay when I go. 25 years LEO, (20 years at 1.7%, 5 years at 1%) 6 years military (6%) and a year of sick leave (1%) to cash in (full value January 1, 2014). ...

When comparing your retirement income to your working pay there are other things you need to look at.

First deduct your TSP contribution you will no longer be making (should be 16.5k) as you will no longer be contributing to base pay.
Then deduct 6.2% of your first 106k in working pay (you won't pay SS on your annuity)
Then deduct the 1.45% Medicare deducted from your working pay.
Then deduct the 1.7% FERS contribution deducted from your working pay.

Example:
Working Pay w/LEAP (or AUO) = 120k
subtract -16.5k TSP = 104k
subtract 7.65% FICA (-8k) = 96k
subtract 1.7% FERS Contribution -$1768) = $94,232

Retirement Annuity
46% of 120k Hi-3 = 55,200
FERS Supplement = 12,000
Total Annuity = 67,200
TSP withdrawal = ?

So your annuity is now approximately 27k less than your working take-home pay. Consider that you will pay probably $3200 additional federal income tax (if, like most, your effective tax rate is about 12%) on that additional 27k working income makes it only about 24k. So your take-home of 94,232 is now approx $91,000

So now compare your annuity of 67k to your working take-home of 91k and you will find it's your annuity + supplement is approximately 74% of your working take-home - and that's before you consider any TSP withdrawals you elect to make.

(of course those calculations are discounting the 16.5k you are putting in TSP out of your working pay each year - so that's cheating a bit, but if you're just looking at how retiring will affect your spendable income .....) Feel better?

 

[goforit]

good explanation. i always tell people look at your(FERS) bi weekly TAKE HOME pay now and add about $500 to it (offsets all the things you said to consider below) and that is what you could see for retirement pay for the month. i also tell them that this is most likely low-balled so do not go to the bank on it.