LES Mystery

[LongRun]

Hi all, I've been trying to decipher the "RETIRE FERS" line in the "Benefits paid by the government for you" on my DOD LES.

Does this figure represent the amount paid to the TSP? The sum of the three components (Basic 1%, Matching, and Savings) does not always match the figure in the aforementioned line. It doesn't match the amount on my quarterly statement either.

Does anyone know what this line is supposed to represent?

I'm growing weary of pecking on the calculator.

TIA and Merry Christmas

 

[tsptalk]

That's probably your "3rd leg" of your FERS retirement plan. There's the TSP, social security, then your retirement. You contribute $x amount each month to that retirement fund, and your agency puts in $x amount also - usually a lot more than you put in.

That's what I think you are referring to. See page 5 of this pdf doc.... http://www.opm.gov/forms/pdfimage/RI90-1.pdf

 

[LongRun]

That's what I was thinking. It gets confusing when the amount going into TSP and the amount the gov't pays into my FERS are equal to the penny. (14%)

If this is so, this means that each pay period, 28% of my salary is going into retirement funds.

Never would have thunk it...

 

[tsptalk]

That doesn't sound right. It should be MUCH less than your TSP contribution. Maybe it's not what we think??

By the way, welcome to the site!

 

[nnuut]

Welcome to the Message Board Longrun. I really don't know because I'm CSRS, mine is the total I've contributed to retirement over my career. Last time I looked it was $104,900 or there abouts. I think it would be the amount you contributed, but it surely couldn't be 28% unless they are counting your TSP, the 5% matching and Social Security along with your contributions.

 

[James48843]

Hi all, I've been trying to decipher the "RETIRE FERS" line in the "Benefits paid by the government for you" on my DOD LES.

Does this figure represent the amount paid to the TSP? The sum of the three components (Basic 1%, Matching, and Savings) does not always match the figure in the aforementioned line. It doesn't match the amount on my quarterly statement either.

Does anyone know what this line is supposed to represent?

I'm growing weary of pecking on the calculator.

TIA and Merry Christmas

I don't know what DoD is doing these days, but at one time, way back when, the government issued a yearly "benefits statement", in which there was a line called "Benefits paid by the government for you".

In that line, they totaled up the government's share of :

1. The medical premium they paid for their share;
2. FEGLI insurance part that they paid- i.e. the first part that came with the job.
3. The employer's contribution to Social Security (remember, you pay half- 7.65%, the employer pays half-7.65%)
4. Anything else they thought to put in there.
5. under FERS, you pay 0.8% into FERS, while the government puts in 11.2% of your salary into FERS.
6. Also, don't forget medicare funding as well. Your empoyer pays a chunk into that.

And yes, it ended up being somewhere around 25% of your salary was what they paid in additional benefits for employing you.

Does that sound more like what your DoD LES is saying?

Or could it be that it is only showing the 11.2% of the FERS contribution that the government pays is what you are seeing?

 

[LongRun]

I think the gov't is paying 14% to FERS on my behalf because of the "RETIRE FERS" line.

I know that I was contributing 9% and the govt matched 5% for a total of 14% to TSP.
There is also a "TSP MATCHING" and "TSP BASIC" line in the "BENEFITS PAID BY THE GOVERNMENT FOR YOU" on the LES as well.

I recently changed my TSP contributions and the "RETIRE FERS" line didn't change. It raised a question with me because the amount had previously been 14% and I thought it was a reflection of the combined total paid into the TSP. After checking the TSP site for contribution amounts, I decided it isn't what I had presumed.

James, the DOD has added the benefits paid section to the LES. Started 2Q07. I suppose it's to remind us how good we have it and confuse us about our retirement.

Maybe I'm making sense...

 

[LongRun]

Thanks for your responses!!