ATC FERS retirement

[clester]

For the FERS ATC people out there. Here are some things to think about. (I have!)
1) Your FERS pension will have a cola.
2) Your supplement will not.
3) Your retirement will (for most of us whose pay is frozen) only go up by the 1% increase for years of service and no increase in high

An example, if you make $100,000/yr (for easy calculations) your retirement will go up 1% per year (compounded). Say you retire at 25 years at age 50. That gives you 39% or 39,000 in FERS retirement. The cola will be say 2%. in the second year of retirement your FERS ret. cola will be $780 (39000 * .02) If you didn't retire your retirement will go up by the 1% for years of service or $1,000 and so on. So your basic retirement will be close to the same whether you retire early or not. Your supplement will be higher also if you stay but you'll get it for fewer years. You TSP will be the biggest difference. You can continue to contribute and get the match, plus your not drawing from it.
4) If you get another job you will lose some or all of the supplement after age 56. (.50 c for every $1 over about $12,000). If you make more that about $36,000/yr you will lose it all. But, at age 56 you get social security and it will be higher because you contributed for an additional 6 years.

5) intangibles - Less stress, freedom (from imposed contract and pay freeze) and freedom to start another career if you want. You may get a pay raise figuring retirement plus new job salary.
6) Lump sum for sick leave (40 %) and annual leave

My plan - retire at 49 1/2 with 25 years. 39% retirement + supplement plus TSP funds using amoritization method. I will have a M.ED in education and begin teaching high school math at $36,000/yr. My wife is a teacher, so summers off! This will be a nice pay raise for me. Plus a second pension.

Anyone else want to share their plans?

 

[Rick]

You are right on Clester!!!!!!!!!!
The point that I like to make is the FAA is shocked that the ATC folks are retiring in mass and can not figure out why. I like you will leave this h--l hole ASAP.
There is nothing the FAA can do that can take the bad taste that they have been shoveing down our throat.
Only the sweet taste of retirement will do.

 

[Hallatauer]

Great plan Clester... so few people plan ahead to decide when to retire or what to do or how their finances will work.

Rick, I have to disagree with you. The FAA knows full well why there is mass retirements and it's what they want. Clean out the experienced, but higher paid, controllers and replace them with fewer, lower paid, greenhorns. It's a business and they are doing anything to cut costs... safety be damned!

Myself, I'm leaving at age 50 with 24 years. Selling the house and moving south. I figure that I will be mortgage/HELOC free and that we can live on my pension and supplement. I still haven't decided on the second career but any money from that is gravy for fun and travel. And that doesn't include any income from my wife. TSP I'm not touching until I'm 60.

 

[luv2read]

Didn't FAA do that during the Reagan Administration? I seem to remember something about a strike and they replaced all the ATC's. That would make YOU guys those replacements, right? Looks like FAA has established a pattern....:blink:

 

[Buster]

Yeah..I watched them poor saps walk off the job and get fired after 20 some years and left with nothing..Thanks to them however, we in the counter part of the FAA earned a 5% thank you bonus from President Reagan for sticking it out through all the turmoil....And we're still getting it..that is what I contribute, plus some to my TSP....No, I'm not in Core Comp. either.

 

[The HalfBreed]

I may as well chime in. I'm in AF, now known as ATO, and have been in since 1978, + 4 years military = SCD of 1974, so I'm CSRS for sure.

What the FAA did to NATCA was a complete and utter disgrace and hopefully, S1300 will change all that, but I won't hold my breath. PASS avoided that conundrum, and our contract is still intact. The FAA is still trying to implement 'their' version, but have failed on two appeals to the FLRA, and they're still trying to implement on the 3rd level of appeal.

I served coffee to those in PATCO who walked the picket lines in 1981, and would do so today if NATCA went the same route, for divided we fall.

There were 5 of us in our unit, and we were together for over 25 years, saw each others kids grow up, knew wives names and all. They got tired of the BS and retired, averaging 38-42 years of service. In 2 years, I'll be 55, with 36 years, and will not hesitate to bail on them, just like you guys.
I'm fortunate enough to be able to live on 38% of my income, so, if I retire, I imagine I'll be able to live on 70% of my income.

Enough of this madness....

BUT.....like anything else, I understand that, it was here before we arrived, and will be here after we're gone. Live life to it's fullest, as our families are the ONLY ones that will truly matter in the long run.

 

[Buster]

.

I served coffee to those in PATCO who walked the picket lines in 1981, and would do so today if NATCA went the same route, for divided we fall.

.

You served coffee and support to those that wanted a $10k/year bonus on top of everything else they got???..a 32 hour work week, but be paid for 40??? a paid medical..and you say you are AF???? Are you sh!tting me???...That is pathetic and also the most stupid thing you have said so far...I'm glad Reagan slapped the arrogant snot out of them...They deserved every bit of it....Served them coffee...Jesus, I heard it all now..

 

[clester]

Back to the subject. Taking 72t payments.

I was talking with some coworkers about transferring your TSP into an IRA and taking funds from there as needed (vacation, car, etc.). Just pay the 10% penalty as you go until age 59 1/2. I like the ability to have control over my money. I'll be 50 when I would start 72t type withdrawals and be stuck with that choice until 591/2 or pay penalty and interest.

10% is not that steep to have control. I would probably take $20,000/yr or so. My penalty would be $2,000. I may not take any.

Just thinking..... I have 1 year to go!!! Yippie!

 

[BULLonPARADE]

First time caller, long time listener. Thought I would use this thread to ask my question. Does anybody know anything about the "Century of Aviation Act of 2006"? Especially the part where ATCS FERS employee's get 1.7% for every year if they get to thirty years service. I want to know if the military time counts. In every other law "Government Service" is defined as total government service including military time but it has not been determined if it is to be included in this circumstance as far as I know. I don't know if any ATCS has retired yet that qualifies; if so, a determination has to have been made.

 

[TRAFFIC_DOG]

Does anybody know anything about the "Century of Aviation Act of 2006"? Especially the part where ATCS FERS employee's get 1.7% for every year if they get to thirty years service. I want to know if the military time counts.

Military time does not count.

You only get 1.7% for "good time".

If you have 30yrs ATC but 3 yrs staff time, you get 27 times 1.7% plus 3 times 1%.

Don't forget you must retire at your MRA exactly...... strange.
(that's the month of your IRS MRA, not ATC)

 

[Guest2]

First time caller, long time listener. Thought I would use this thread to ask my question. Does anybody know anything about the "Century of Aviation Act of 2006"? Especially the part where ATCS FERS employee's get 1.7% for every year if they get to thirty years service. I want to know if the military time counts. In every other law "Government Service" is defined as total government service including military time but it has not been determined if it is to be included in this circumstance as far as I know. I don't know if any ATCS has retired yet that qualifies; if so, a determination has to have been made.

Welcome BoP !

 

[Show-me]

BULLonPARADE,

Welcome to the message board and I hope your fellow FAA folks can help you.

 

[clester]

Military time does not count.

You only get 1.7% for "good time".

If you have 30yrs ATC but 3 yrs staff time, you get 27 times 1.7% plus 3 times 1%.

Don't forget you must retire at your MRA exactly...... strange.
(that's the month of your IRS MRA, not ATC)

Also I hear you do not get a COLA between 56 and 62 because this retirement fall under a different category. Not many have a MRA of 56. You would have to be born before 1964 I think. It goes up from there.

Has anyone ATC FERS retired? If so, what was the timing on getting your first checks? sick and annual leave? Fers retirement? The OPM site say 6 weeks i think. Is that accurate? Thanks for the replies.

 

[BULLonPARADE]

Thanks for the welcome guy's.

I'm 44 and can retire in 4 years with 30 years including the military time I bought back. No raises in the last two years as I'm at the top of the pay band. Why would I stay 12 more years at the same pay when I could get raises in retirement? From what I calculate, that and the loss of COLA would make the Century of Aviation act worthless.

Thanks

 

[clester]

Thanks for the welcome guy's.

I'm 44 and can retire in 4 years with 30 years including the military time I bought back. No raises in the last two years as I'm at the top of the pay band. Why would I stay 12 more years at the same pay when I could get raises in retirement? From what I calculate, that and the loss of COLA would make the Century of Aviation act worthless.

Thanks

Exactly!, I'm in same position but can retire in 6 months with 25 years FERS no military. With the pay freeze it makes the decision pretty easy.

 

[BULLonPARADE]

DUH... I would actually have to stay an additional eight years. Shows you how much thought I've actually given to sticking around to age 56!

 

[Hallatauer]

No thought there. the month I turn 50 I expect to hand in my papers. The only thing that can hold me back is selling the house. Two years for the credit markets and economy to turn around. <praying daily>

 

[hessian]

Under FERS, my understanding is that you CAN retire anytime, with your 401k intact/72t,/whatever, but to continue recieving your Fed Heatlth Benefits you must at least be your MRA (+10), AND retire under an immediate annuity - therefore reduced (but this is the small portion under FERS, anyway). Your 401k is the REAL benefit. (Other than Social Security at 62 min.)
My main driver is staying in until my MRA - to ensure I get to keep my FEHB intact!!!
Anyone, please respond if I got any of this incorrect.
VR .
(3 years, 8 mo, & counting)

 

[clester]

Under FERS, my understanding is that you CAN retire anytime, with your 401k intact/72t,/whatever, but to continue recieving your Fed Heatlth Benefits you must at least be your MRA (+10), AND retire under an immediate annuity - therefore reduced (but this is the small portion under FERS, anyway). Your 401k is the REAL benefit. (Other than Social Security at 62 min.)
My main driver is staying in until my MRA - to ensure I get to keep my FEHB intact!!!
Anyone, please respond if I got any of this incorrect.
VR .
(3 years, 8 mo, & counting)

I believe in ATC FERS you get it whenever eligible. Not sure about regular FERS