FERS retirement at 62?

[PessOptimist]

20 years or more time and 62 years old or more get you a 1.1% multiplier of the high three basic salary.


That is mainly why I am sticking around.

Thanks for that info; that's good to know!


A word to the wise, though, you don't get a medical retirement if you already qualify for a regular retirement. We had a guy in the office get a medical last July when he could of retired in August. The way the dates on the paperwork lined up had them retract his medical retirement in September in favor of a standard 30 year FERS retirement. He also had to pay back the difference he'd received so far.

Absolutely true. It's all on the OPM web site.

Computation

You just need to search around to find the info applicable to you.

PO

 

[alevin]

alevin, the way I look at the 1% vs 1.1% is it's a 10% bonus for sticking around another couple of years. In my case it's going to pay for the 10% reduction I take for survivor benefits. I can do two more years for that. Plus with my TSP performance I need the time.

for me, I'll probably stay at least until after my 60th, which would be an additional 6 months, add in the 100% SL for another 7 months worth of credit... hmm. I might have to stay long enough to get the other 11 months. hmmm, hadn't thought about it that way til now. oth, 10hrs worked on the weekend, long day yesterday, worked til 830 tonight, hmmm. aged parents 1000 miles away. yep, I will probably make decisions month by month once I get the 30 in and get another birthday under my belt after that. the tsp and outside accounts can't afford a megadive in the meantime or I can throw all these calculations out the window.

 

[ripper]

My retirement plan keeps changing.

I was always going to retire when first eligible, which is the end of this month. I'll be 60 in March and had my 30-year anniversary three days ago.

But last year I thought maybe it would be better if I used my accumulated AL rather than cashing it out, so I decided I'd work one more year while using up most of my AL. I'll have up to 16 weeks to use and I thought it would be kind of enjoyable working my final year kind of like I was part-time.

But that puts me 15 months from being 62, when I would get the 1.1%/year. Gotta admit I'm considering that now.

I just don't want to fall into the mind-set of thinking, "Well, if I work one more year, I'll have x-amount more money". I've seen others do that who ended up working until they weren't able to enjoy their retirement.

 

[konakathy]

My retirement plan keeps changing.

I was always going to retire when first eligible, which is the end of this month. I'll be 60 in March and had my 30-year anniversary three days ago.

But last year I thought maybe it would be better if I used my accumulated AL rather than cashing it out, so I decided I'd work one more year while using up most of my AL. I'll have up to 16 weeks to use and I thought it would be kind of enjoyable working my final year kind of like I was part-time.

But that puts me 15 months from being 62, when I would get the 1.1%/year. Gotta admit I'm considering that now.

I just don't want to fall into the mind-set of thinking, "Well, if I work one more year, I'll have x-amount more money". I've seen others do that who ended up working until they weren't able to enjoy their retirement.

Ripper...

If you enjoy your job then stay the 15 months, but if not.....put the pedal to the metal and get on with enjoying the rest of your life. Who knows how much time each of us have left on earth. How much more a month will that .1% give you if you wait it out until 62? Enough to want to stay another 15 months?

I'm punching the clock for the last time when I turn 60 and will not look back. I plan on taking that first year of retirement and travel around the U.S. If after the first year I think I need to make some more mad money...I'll get a part time job. No biggy. I want the freedom to come and go, and not punch a clock anymore.

Don't keep second guessing yourself...go with your gut feeling, it's always the right choice.

Aloha

 

[Scout333]

Hello Ripper, Just one thought re the AL cash payout, it really comes in handy since OPM can take 5-9 months to finalize your retirement. I retired 1-2-14 and was finalized by OPM in late May, 2014. That AL payout really came in handy! It eventually sorted itself out but cash flowing expenses could have been a real problem. Good luck with your decision.

 

[Cactus]

Be careful in applying accrued SL to your retirement projections. It does count, as time added in monthly increments, towards your annuity, but it doesn't count as time towards qualifying for retirement. You must meet the time/age requirements for retirement without the SL factored in. In particular you must be 62 or older to get the extra .1%. The whole reason you are getting that, after all, is because now they don't have to pay you the social security supplement.

 

[alevin]

Be careful in applying accrued SL to your retirement projections. It does count, as time added in monthly increments, towards your annuity, but it doesn't count as time towards qualifying for retirement. You must meet the time/age requirements for retirement without the SL factored in. In particular you must be 62 or older to get the extra .1%. The whole reason you are getting that, after all, is because now they don't have to pay you the social security supplement.

Thanks Cactus. I wondered about that (whether could get to the 1.1 through combo of actual years in plus S/L time credits). Rats. For me, I'll have 30 yrs, 6 months actual years in at 60, plus 7 months S/L credit to add to the annuity, as things stand right now. I really don't want to hang around another 2 years after 60, even for the 1.1. Only reason to stick around would be to keep pumping up the TSP account with maxed out contributions for another 2 years. I'm feeling more and more ready for a major life change in next couple years. Conserving S/L to extent feasible to boost annuity makes total sense to help me reach that goal financially.

The 1.1 at 62 (and required years in) is definitely a carrot to keep the agencies from having to pay the supplement out of agency budgets, you're absolutely right.

 

[weatherweenie]

Be careful in applying accrued SL to your retirement projections. It does count, as time added in monthly increments, towards your annuity, but it doesn't count as time towards qualifying for retirement. You must meet the time/age requirements for retirement without the SL factored in. In particular you must be 62 or older to get the extra .1%. The whole reason you are getting that, after all, is because now they don't have to pay you the social security supplement.

Personally, I think it's more advantageous to use the sick leave you have versus rolling it into the annuity.

 

[ripper]

Hello Ripper, Just one thought re the AL cash payout, it really comes in handy since OPM can take 5-9 months to finalize your retirement. I retired 1-2-14 and was finalized by OPM in late May, 2014. That AL payout really came in handy! It eventually sorted itself out but cash flowing expenses could have been a real problem. Good luck with your decision.

Thanks for the info. I've heard that from others, as well. But waiting nine months wouldn't be a major issue for me. Just as long as I eventually receive it.

 

[PessOptimist]

Great thread with lot's of good info. It is a personal choice but one more factor to think about among the many we all have to consider. For myself going now at 17 years v going at 20 years and 62 yo means 17% v 22% or a 5% difference. A couple thou a year at best. I wonder after pay periods like this one if it is really worth it.

Happy planning everyone. Looking forward to not having to get up at 0dark30 and driving down the interstate at 15 mph (on a "good" morning). In three short years that is.

PO

 

[ripper]

Ripper...

If you enjoy your job then stay the 15 months, but if not.....put the pedal to the metal and get on with enjoying the rest of your life. Who knows how much time each of us have left on earth. How much more a month will that .1% give you if you wait it out until 62? Enough to want to stay another 15 months?

I'm punching the clock for the last time when I turn 60 and will not look back. I plan on taking that first year of retirement and travel around the U.S. If after the first year I think I need to make some more mad money...I'll get a part time job. No biggy. I want the freedom to come and go, and not punch a clock anymore.

Don't keep second guessing yourself...go with your gut feeling, it's always the right choice.

Aloha

I don't hate my job. But then, I don't look forward to going to work each day.

Staying the extra 15 months would increase my pension by about $3k/yr (before taxes). Nothing huge, but obviously a bigger increase than any other 15-month period in my career.

I'll probably still leave before 62. I guess I just considered it because it was a way of receiving a higher return over that time.

 

[ripper]

On a side note, I wish they could provide us with a decent estimate of what our Social Security supplement will be. I have a real good idea what my SS will be at 62, but I know that my supplement will be somewhat less than 3/4 of that for 30 yrs since I've worked quite a bit of overtime and I also worked full-time in the private sector for 10 years before becoming FERS.
I'm guessing mine will be somewhere around $1k/mo., but not sure.

 

[Frixxxx]

Federal Employee CSRS and FERS Retirement Resources has a supplement calculator you want to try.

 

[wheeble]

I retired last Month at 56 with 35 years. Working for the Government changed from a job i loved for 25 years to something else over the last few years. Management dysfunction, rampant absenteeism, nepotism, bullying, constant downsizing, the list goes on and on. It was time to go. Anyone waiting to retire for the tiny bit of extra money, it is just not worth it in my book.

 

[Kaufmanrider]

Don't want to change the topic too much, but on a related note I see from Kaufmanrider's link that ATCs get 1.7% for the first 20 years. Are there any controllers out there? The link sounds like you actually have to retire as a controller. Is that correct? If you go on and do something else for the government and then retire do you lose the 1.7% for the years you were an ATC?

After 20 the 1.7% is kept. The special retirement group reverts to the same 1% per year as other Feds (after 20). Also, if the person moved to another position after 20 they would still qualify for the 20 at 50 eligibility retirement. I retired at 49 with 25.5 years (25 years LEO at any age) and with military and SL had 32 years credited. My calculation was 34% for the first 20, 12% for the other 12. I recieve 46% of my high three, with the FERS COLA, and the special supplement (not COLA'd).

 

[Cactus]

Thanks for the feedback, Kaufmanrider.

 

[bmcar]

As of January 1, 2014 FERS folks can apply 100% of accrued SL towards their years. I won't have zip. I always followed the old philosophy "use it or lose it."

accrued SL only counts towards your annuity calculation, not years of service.

 

[alevin]

I'm just glad they changed the rules. Used to be all that sick leave we FERS folk stored up, just simply went away at retirement. No retirement value whatsoever to holding onto it. The value for me was that it served as an insurance policy in case there was ever a situation where I couldn't work for a very long time due to accident or illness or somesuch. Keep me afloat til disability insurance kicked into gear, or I was able to come back to work, or medical retirement kicked in. Longterm care insurance was not available til not too long ago. That is for my much later years. I hope never to need it-insurance is for the just in case situations, not the expected. In terms of LTC, they're betting I'll kick off before I need what I've paid for. I'm betting I may live long enough to need it. Just in case. A big game of generational statistics vs family history of longevity.

 

[konakathy]

accrued SL only counts towards your annuity calculation, not years of service.

Yes, you're right. Thanks for clarifying. I won't have enough banked to make a difference in my annuity when I retire. I wish they had changed this rule years ago I may not of had so many headaches or hang nails. :toung:

 

[Valkyrie]

Yes, you're right. Thanks for clarifying. I won't have enough banked to make a difference in my annuity when I retire. I wish they had changed this rule years ago I may not of had so many headaches or hang nails. :toung:

and I believe only full weeks of SL are used, any days left over get tossed.