PessOptimist's Retirement Story

[PessOptimist]

Hi PO. I'm in a bit different situation than you being retired CSRS. However, we contacted SS a while back and were told that both my wife and I can collect our individual SS benefits at the same time. However, in my case I have elected to defer my SS benefits until after I'm 67 because of the CSRS offset which has a rather negative impact for CSRSers. My wife receives her benefits and I am entitled to receive my benefits (subject to the CSRS offset). All I have to do is contact SS. Hope it is as simple as that for you also.

Now, on to a more important issue. Please be very cautious when posting incendiary knowledge that the unenlightened might read. If the SO's in our world become aware that they get 1.1% times your high three if you work until 62....NO ONE gets out of the salt mines. Dangerous stuff.

Best of luck to you as you and your SO prepare for retirement. It is beyond great.

FS

I know what you mean about that 62yo info. To me it was a nice fact to find out since I was planning to work until 65 anyway. It coincided with 20 years federal service so seemed like a reasonable place to stop. My situation is different from many of my fellow feds. I was aware of the MRA+10 and 62+5 rules but think it is going to be worth waiting for 62+20. For most, that rule is best not mentioned.

Now about that SS question. I looked in to it and both myself and my wife can receive SS retirement payments. She receives her own payments plus enough to equal spouse benefits from my SS if it is a higher amount. Spouse benefits are computed using common fractions like [SUP]25[/SUP]⁄[SUB]36[/SUB] and [SUP]5[/SUP]⁄[SUB]12[/SUB] of ½ of my base amount at my full retirement age.

Bottom line is her own SS retirement at 62 is more than spouse benefits would be until she turns 65 and 1 month. Even if she waits until her full SS retirement age the difference is only $120 per month.

The plan is I will apply at full SS retirement age. SO will apply whenever she decides after turning 62. That is her money and does not figure in to my retirement calculations.

Now a question about the actual nuts and bolts. I know that my first payment will be the fourth Wednesday of the month following the month I first start receiving benefits. What seems uncertain is what month that is. If I apply in May will I receive the payment in June or July?

PO

 

[FogSailing]

I know what you mean about that 62yo info. To me it was a nice fact to find out since I was planning to work until 65 anyway. It coincided with 20 years federal service so seemed like a reasonable place to stop. My situation is different from many of my fellow feds. I was aware of the MRA+10 and 62+5 rules but think it is going to be worth waiting for 62+20. For most, that rule is best not mentioned.

Now about that SS question. I looked in to it and both myself and my wife can receive SS retirement payments. She receives her own payments plus enough to equal spouse benefits from my SS if it is a higher amount. Spouse benefits are computed using common fractions like [SUP]25[/SUP]⁄[SUB]36[/SUB] and [SUP]5[/SUP]⁄[SUB]12[/SUB] of ½ of my base amount at my full retirement age.

Bottom line is her own SS retirement at 62 is more than spouse benefits would be until she turns 65 and 1 month. Even if she waits until her full SS retirement age the difference is only $120 per month.

The plan is I will apply at full SS retirement age. SO will apply whenever she decides after turning 62. That is her money and does not figure in to my retirement calculations.

Now a question about the actual nuts and bolts. I know that my first payment will be the fourth Wednesday of the month following the month I first start receiving benefits. What seems uncertain is what month that is. If I apply in May will I receive the payment in June or July?

PO

PO I knew you were going to ask me a question that would trip me up. Now I have to confess to the dreaded "brain fade" that occurs about this time in our lives. Where is that Focus Factor? :nuts:


View attachment 33903

If my memory serves me correct, also known as having a Brain Fart.......

View attachment 33904

....My wife became eligible to collect her benefit in December 2012. However I don't think she received her first check until February 2013. When it came it also included the January benefit. It's been a while but I believe that's how it worked. We had no problems with SS. They have done a fine job from our perspective. I will say that once in a while we've talked to someone that wasn't as well qualified as many in that agency are. When that happens we just find a nice way to defer and call back in a day or two. Our experience is that most of the SS employees are competent people.

Best of luck to you. Hang in there. I read your other post and definitely agree that there are way too many egos in the service these days (military, career, or political...almost doesn't matter). But at the end of the day I always go home to my wonderful family and good friends and remember that is why I did work and that they are really the most important thing. All the best.

FS

 

[PessOptimist]

Thanks for the reply FS and thanks for two more images to include in my collection.

There is only one person in the household and I have no idea how many external to the household that are concerned about which month the payment arrives. I believe it will arrive and be the proper amount for payments owed and I also believe that no one will want for things during those months.

I was going to end this with an agreement of your reminder of where you went at the end of the day and who you did it for. While writing this I was told that the air filtration needs attention because the air stinks and the fire extinguishers need replacing right now. A stark reminder of my place here. Sitting on the patio typing in to a computer is not a productive activity. I was asked if I could take tomorrow off. No reason offered. I replied no and the conversation ended.

Deep breathly, the grass is brown, the sky is green. There is very little doubt the universe is unfolding as intended. Carry on with the retirement plans and make arrangements for life after 12/31/17 but only with funds you can legally prove are yours and yours only.

Thanks again for your reply FS.

PO

 

[FogSailing]

Thanks for the reply FS and thanks for two more images to include in my collection.

There is only one person in the household and I have no idea how many external to the household that are concerned about which month the payment arrives. I believe it will arrive and be the proper amount for payments owed and I also believe that no one will want for things during those months.

I was going to end this with an agreement of your reminder of where you went at the end of the day and who you did it for. While writing this I was told that the air filtration needs attention because the air stinks and the fire extinguishers need replacing right now. A stark reminder of my place here. Sitting on the patio typing in to a computer is not a productive activity. I was asked if I could take tomorrow off. No reason offered. I replied no and the conversation ended.

Deep breathly, the grass is brown, the sky is green. There is very little doubt the universe is unfolding as intended. Carry on with the retirement plans and make arrangements for life after 12/31/17 but only with funds you can legally prove are yours and yours only.

Thanks again for your reply FS.

PO

I hear you PO. All SO's are tyrants....but I still love her..

FS

 

[exnavyew]

Get What's Yours - read this before making any decisions.
Amazon.com: get what's yours

 

[Scout333]

"Now a question about the actual nuts and bolts. I know that my first payment will be the fourth Wednesday of the month following the month I first start receiving benefits. What seems uncertain is what month that is. If I apply in May will I receive the payment in June or July?"



Hello PO, In response to your question, my BD is in December, I retired 1-2-2014. I received my first SS check fourth Weds of Feb., 2014 which I believe was for Jan. 2014. Hope this helps!

 

[Scout333]

"Now a question about the actual nuts and bolts. I know that my first payment will be the fourth Wednesday of the month following the month I first start receiving benefits. What seems uncertain is what month that is. If I apply in May will I receive the payment in June or July?"



Hello PO, In response to your question, my BD is in December, I retired 1-2-2014. I received my first SS check fourth Weds of Feb., 2014 which I believe was for Jan. 2014. Hope this helps!

Sorry I didn't really answer your question. My guess is July if you applied in May. June would be your first full month of retirement. SS payments are made for retirement months in arrears.

 

[PessOptimist]

Nothing has really changed in my plans. End of 2017. Take no annual leave in 2017. Sell back 448 hours.

I was recently reminded of one individual who figured it all out and extended his initial retirement date to take his annual leave while still employed. His rationale was he accrued annual leave while on annual leave, still had the same FEHB and “other benefits”. I think the plan was he carried over 240 hours at the end of the leave year and while on “terminal leave” he would accrue 24 hours of annual leave to use (extending retirement date by three days) or sell back. Check my math 240/80=3 pay periods*8 hours=24 hours annual. Plus he backed up from the end of the leave year to use the 208 he earned the prior year so was on about 11 weeks of terminal leave while still employed. He was CSRS so maybe something else influenced it. Sounds like it was a lot of work to figure it out. Comments please?

My MAIN reason for posting is that in the last couple of weeks three people in my chain have asked about my projected retirement date. I have previously made this known to them. They all stated they were just confirming and two of them said something like “we would love to have you stay longer”. Must have been something that came up in a meeting they had. Why would they want me to stay longer and why mention it more than two years out?

These people WERE NOT my supervisor who has to be a GS-whatever manager. It might be interesting to hear what my supervisor has to say during my annual review. I made my plans known to my previous supervisor and current one when that supervisor was acting for my old supervisor. Confused yet?

Bottom line-why did these questions and comments come out of the blue? Am I really valuable or does my FTE go away when I retire and they are wanting to keep it while negotiating? It’s more than two years out. Are they trying to plan FY 2018?

Sticking around for an additional year if I can health wise (including mental health) would put me over my SS retirement age before I start collecting SS. That might get me a whopping $180 per month. Plus an extra years income. Plus TSP matching. Plus the FERS multiplier increases. Plus my high three might increase.

Comments needed.

Happy retirement planning everyone.

PO

 

[FogSailing]

Hi PO:

Nothing has really changed in my plans. End of 2017. Take no annual leave in 2017. Sell back 448 hours.

COMMENT: SUPER. You have a date and a plan.

I was recently reminded of one individual who figured it all out and extended his initial retirement date to take his annual leave while still employed. His rationale was he accrued annual leave while on annual leave, still had the same FEHB and “other benefits”. I think the plan was he carried over 240 hours at the end of the leave year and while on “terminal leave” he would accrue 24 hours of annual leave to use (extending retirement date by three days) or sell back. Check my math 240/80=3 pay periods*8 hours=24 hours annual. Plus he backed up from the end of the leave year to use the 208 he earned the prior year so was on about 11 weeks of terminal leave while still employed. He was CSRS so maybe something else influenced it. Sounds like it was a lot of work to figure it out. Comments please?

COMMENT: I retired CSRS in 2006 and noted that many federal workers under CSRS did similar things during their last quarter to use leave they would otherwise lose. If you are CSRS, and planning to leave at the end of the fiscal year or calendar year, your scenario sounds like a good use of annual leave if you will otherwise lose those benefits. If you are somehow able to treat them as leave that can add to your Time In Service, I'd calculate the benefits under that scenario before making a decision. For example, I don't believe FERS employees were able to make use of SL in their calculations like the CSRS folks. In some cases, I think annual leave was somehow converted to leave for purposes of retirement computation; but it's been a long time and I don't remember the details.

My MAIN reason for posting is that in the last couple of weeks three people in my chain have asked about my projected retirement date. I have previously made this known to them. They all stated they were just confirming and two of them said something like “we would love to have you stay longer”. Must have been something that came up in a meeting they had. Why would they want me to stay longer and why mention it more than two years out?

COMMENT: If they are preparing the OMB Budget for 2017, they may also be cushioning their FTE count for the outyears (2018-2021). If you are staying, they get to use your salary and benefits for budget projections, which are likely higher than a replacement with fewer years service and less time in grade. Just a thought. And, while your management may be screwy, there are probably some rationale fair minded types in the bunch (budgets are made by the bunch) that recognize good employees and are concerned about losing staff of high value.

These people WERE NOT my supervisor who has to be a GS-whatever manager. It might be interesting to hear what my supervisor has to say during my annual review. I made my plans known to my previous supervisor and current one when that supervisor was acting for my old supervisor. Confused yet?

COMMENT: Nope. If gets a bit crazy as you near retirement day. I remember how everyone told me how much they would miss me, and how it would be crazy hard to fill my position when I left. Loved hearing it. It did great things for my ego. But my retirement day came and I retired and they did just fine without me and found a good person to replace me and I moved on to a better life...enjoying life..

Bottom line-why did these questions and comments come out of the blue? Am I really valuable or does my FTE go away when I retire and they are wanting to keep it while negotiating? It’s more than two years out. Are they trying to plan FY 2018?

COMMENT: See above.

Sticking around for an additional year if I can health wise (including mental health) would put me over my SS retirement age before I start collecting SS. That might get me a whopping $180 per month. Plus an extra years income. Plus TSP matching. Plus the FERS multiplier increases. Plus my high three might increase.

COMMENT: It's worth running those numbers. Increasing your retirement in a "significant way" is worth the time and effort to check out with your personnel department, but define significant before you start the analysis. That way you know if it's a good decision or not; and in any case, I strongly recommend having a date set in your mind. It's one of the great accomplishments of our lives. But also realize, if you want to work after retirement, there's a whole world of opportunity out there. I enjoyed the private sector for 3 years before I hung it up for good. Nice way to help out the SS check. Not sure any of this helps you but I wish you the best. Have fun during this time. As I've told you before, you're in a great place in your career.

All the best,

FS

 

[GUCHI]

Just my opinion and observation of the gubmint and for that matter private sector also. I retired in 2014 May and noticed that I was one of the last of the big move out baby boomers. I noticed my agency and probably others seeing a big void with boomers leaving and what I call an fng (------- new guys/girls) coming on board. With the boomers a lot of valuable experience and work knowledge was walking out the door. My agency has considered a mentor program where potential retirees would stay on part time and train the newbies before leaving their jobs. Well good plan but very poor timing about 10-15 yrs too late since most are gone already. Will gubmint continue to move on, yes but it will be a different gubmint with newbies and their perspective of how things should be. The newbies that came on with my agency were book smart but could not function in the field. We worked with farmers and ranchers to protect our natural resources thru conservation and water quality projects. You will be missed like I,but I hate to tell you but you will be replaced by an FNG heehee

 

[PessOptimist]

Since I started this so early and it has been dormant for several months I thought an update was due FWIW. Plans for the actual retirement date may change. Two thing happened.

My SO has had health problems for about six months and during that time I have used almost all my accrued sick and annual leave under family medical leave act.

My boss retired. I always figured I would beat him out the door but things changed.

I was encouraged by many to apply for his job under the MP announcement. I did and was offered it and accepted it. Now my job owns me a little more. So retirement date is slid until June 18 or later. Life changes. Better high three and will be full (66) SS retirement age.

I have a birthday coming up. From now on birth anniversaries are expressed in hexadecimal. I will be 40.

Things to try to remember

Enroll in Medicare next year. Buy part B. Try to figure out how to pay for part B since it usually is deducted from SS payments which I will not be receiving.

Renew driver’s license next year and try to pass eye test without glasses.

Try to convince people at UHC Veterans and Retirees and at TriCare that yes, I DO need to keep paying them so my wife can continue to get coverage. It is their rule but no one seems to understand it.

Enrolling in Medicare when you are 41(h) is a given. Buying part B is required to remain in TriCare. Requesting SS payments is a different deal.

I will post occasionally as things change.

PO

 

[PessOptimist]

A little bit about my health insurance cluster.

Elsewhere someone has made me aware I will have to pay my health insurance premium for retiree FEHB in the interim between retiring and actually getting money from OPM. Hell what’s $360 for a couple months when you have no income?

There is a big uproar at Luke AFB (LAFB) amongst the retired military members. The 56[SUP]th[/SUP] Medical Group has announced that all old farts reaching 65 will no longer be seen at the clinic. Previously they had stated everything would be the same as before except Medicare would be the prime insurer instead of TriCare which here is recently United Health Care Veterans and Retired Military. Something called TriCare for Life takes over as a “wraparound” insurance. Provided under contract by Wisconsin Physicians Service. You have to get Medicare Part B to be eligible. Premiums jump over 200%. Part B v TriCare Prime premiums.

I was aware of this change in insurance due to research since my primary insurer has been FEHB BCBS for years with TriCare Prime secondary. That has had its own issues. I suspected that LAFB would no longer service those over 65 a couple years ago since talking to my Primary Care Manager (PCM) who was a retired O-5 and was getting his 20 years FERS in. He has since moved on to a local hospital. I asked what he thought I should do and he said look for a doctor.

FWIW since that PCM moved on I was assigned a contracted doctor who could not access my records and has also moved on. Now I have no PCM and am assigned to whoever is available. Whatever.

The main dilemma is that when I turn 65 and get thrown out of TriCare Prime, my spouse will be 61. NO ONE seems to be able to tell me how to keep her TriCare Prime coverage as they won’t accept my payments after I turn 65. They all assure me that if her Tricare coverage lapses she will NOT be eligible for TriCare for Life when she applies for Medicare four years later.

To add to the confusion, I will still be working when I turn 65 and still be enrolled in FEHB. But I have to enroll in Medicare and buy part B to keep my military health insurance.

Anyone else out there who has dealt with this? Fortunately I have about a year to try to figure it out.

PO

 

[evilanne]

A little bit about my health insurance cluster.

Elsewhere someone has made me aware I will have to pay my health insurance premium for retiree FEHB in the interim between retiring and actually getting money from OPM. Hell what’s $360 for a couple months when you have no income?

My FEHB payments were paid by OPM when they finalized my retirement, I didn't get any bills. (Dental & Vision Premiums you do have to pay for in interim) I switched from BCBS Standard to Foreign Service Benefit Plan prior to retirement, which saved me about $175/month for family plan. It is a FFS Plan, similar to BCBS, but only available if you are current civilian employee working for DoD or specific agencies https://www.opm.gov/healthcare-insu...ormation/plan-codes/2016/brochures/72-001.pdf. You may want to check out the different plans available during next open season.


My mother has Medicare, FEHB and Tricare for Life (overinsured). When you are covered under Medicare, I think your spouse would enroll as single vs family in Tricare, but I’m not sure why you wouldn’t just rely on the FEHB that you are already paying for. Tricare website: http://www.tricare.mil/Plans/SwitchingPlans

 

[PessOptimist]

My FEHB payments were paid by OPM when they finalized my retirement, I didn't get any bills. (Dental & Vision Premiums you do have to pay for in interim) I switched from BCBS Standard to Foreign Service Benefit Plan prior to retirement, which saved me about $175/month for family plan. It is a FFS Plan, similar to BCBS, but only available if you are current civilian employee working for DoD or specific agencies https://www.opm.gov/healthcare-insu...ormation/plan-codes/2016/brochures/72-001.pdf. You may want to check out the different plans available during next open season.


My mother has Medicare, FEHB and Tricare for Life (overinsured). When you are covered under Medicare, I think your spouse would enroll as single vs family in Tricare, but I’m not sure why you wouldn’t just rely on the FEHB that you are already paying for. Tricare website: Switching Plans | TRICARE

Spouse has no basis to enroll as single in tri care as she is "just a dependent". BCBS Standard does not cover everything for several extended inpatient "experiences". Been to the tri care web site and they just do not understand other than to state spouse can continue tri care prime. Tri care prime is not free. So pay the premiums until spouse is Medicare eligible. Or drop her from eligibility. Yes, I have called them and the UHC people just read from the web site. Typical contractor.

Once again I will state the "free healthcare for life" from military service is not free.

PO

 

[evilanne]

Spouse has no basis to enroll as single in tri care as she is "just a dependent". BCBS Standard does not cover everything for several extended inpatient "experiences". Been to the tri care web site and they just do not understand other than to state spouse can continue tri care prime. Tri care prime is not free. So pay the premiums until spouse is Medicare eligible. Or drop her from eligibility. Yes, I have called them and the UHC people just read from the web site. Typical contractor.

You may have better luck with DMDC Support Office (DSO) since they code DEERS eligibility. If a surviving spouses & even some divorced spouses are eligible, I am sure your current wife would be eligible. see https://www.dmdc.osd.mil/milconnect...l-state=ouu4smsni_4&_afrLoop=8017633789590437 (select FAQ tab, then "DEERS" & "DEERS: TRICARE and DEERS")

 

[jpcavin]

Box is full. Will follow up discussion tomorrow. Nite

 

[jpcavin]

PO

Tricare 4 Life is free to you. You dont have to pay tricare premiums for yourself. You only pay medicare premiums. Nobody is eligible for Tricare 4 Life unless they are medicare eligible...so this eligibility does not extend to spouse or other dependents. Unfortunately, that means that you need to continue paying Tricare Prime premiums for your spouse until she is eligible for medicare. However, I am assuming (don't quote me) that your premiums for Tricare Prime should be reduced to single rate vice dual or family rate, whatever the case may be. Your TRICARE Regional Office (TRO) can tell you what your new premiums should be. TRO-West | Health.mil

I've spoken with Tricare as well as several other co-workers with the same scenario as you and they all had to continue paying Tricare premiums on behalf of their spouse until such time as their spouse became eligible for medicare.

Hope this helps.

 

[jpcavin]

Also, look at the very last paragraph here : Becoming Medicare-Eligible | TRICARE

What about my family members?

If you’re turning 65, but you still have family members under age 65, they can continue to use TRICARE Prime, TRICARE Standard and Extra, or whatever plan they're using now until they also become eligible for Medicare Part A & B

You can also just call DMDC like evilanne pointed out.

DMDC Support Office Toll-free: 1-800-538-9552
TTY/TTD: 1-866-363-2883
Fax: 1-831-655-8317

 

[PessOptimist]

Thought it was time to post something as to retirement plans. Thank you everyone for your input about health insurance.

Still planning to retire from fed service at the end of next year. That was a statement I made a few years ago, to a manager who is no longer a fed and others who are no longer in my chain of command. Some co-workers know this as well. Whatever, it all comes down to me and what I want at this point. I am sorry to say that I am looking at me first and agency second.

A few weeks ago I requested a retirement estimate from HR for 31 Dec 16. I had it taped to my office door for a while but my #2 convincedme to take it down. It is now posted inside the office. Not going to happen and it was just something I did because it was that kind of a day.

For all of you contemplating retirement, these estimate seem to be easy for your HR section to create once they have the info entered in to whatever program they use. I request several per year lately.

Open season for FEHP is closing tomorrow. No changes for me in spite of all the discussion in previous posts. EvilAnne is correct I am overinsured. Not only that but having a primary insurer breaks some links to TriCare when claims are submitted. Things normally covered by UHCWest under TriCare are not because BCBS won’t cover them. So by saving TriCare money by having FEHP coverage you apparently relieve TriCare of the responsibility of picking up what would normally be covered under TriCare. We are still fighting but the TriCare rep at my primary health care provider agency says we would be better off dropping the primary. SO does not agree. I do not know and am a little scared.

It is the end of 2016 and big milestones coming up as I turn 65 in May 17. Got to get my driver’s license renewed in April. Should be OK there. Just another thing to remember. Got to apply for MediCare in February or March and buy part B. Why? To keep TriCare. I will still be working so that may confuse SS administration, plus how to pay for part B since I have no SS payments coming in. Still will have to pay for TriCare Prime for the wife, no obvious way to get family only and not me on that. I will figure it out or keep paying the premiums for family. Got to go by the ID section of Luke AFB by 30 Apr 17 to get the ID card changed. The back part is what changes, where it says stuff about medical care. Who knew that when you turn 65 you are turned over to MediCare? Yeah, I know, TriCare for Life blablahblah.

Another biggie is I must find a new primary care manager(doctor) by 30 Apr 17 as TriCare, as managed by 56MG at LAFB, no longer cares for retirees over 65. Adding to that my PCM at the base no longer works there as of a year ago and I have not been assigned a new PCM. I still get encounters with whoever is available but no PCM in the system and therefore no medical records available. I will likely work that out too.

2017 is full of challenges as you can see and medical care was one of the lowest on the radar at first as I figured TriCare would be there. Silly me. Thanks for my service.

Plan now is to enroll in MediCare in February or March, enroll in part B, continue to work for my agency, continue FEHP, continue to contribute max in to TSP and go to work every day doing the best I can.

Back to the Fed retirement thing. I continue to want to hangout until at least the end of June next year for the 62+20=1.1% factor on the annuity. I want to keep my promise to stick around until the end of next year. Every month I stay adds to the high three average. I think about sticking around until May 2018 so I get “full” SS annuity.

For me that’s age 66. “full” SS annuity is just a benchmarkSS administration created. An amount to add or subtract from.

Where I am now is the same place I was at the end of my military career. It isn’t fun anymore and I am not engaged to give it my best effort. I am not sure what “my best effort” is.

Depending on your age and circumstance, retiring from Fedservice is a big step. You have to get a job to survive if you are doing the MRA thing or you have to figure out what money you will have coming in if you are not planning on ever working again.

Me, I think I might be OK as my estimations do not include withdrawing from TSP. I try to keep that out of the discussions. It is still going to be an emergency fund I hope until I have to take minimum withdrawals at age whatever. Still my federal annuity will only be 22% of my high three. Adding my SS to that is a 40% or so pay cut. Life style adjustments are needed.

PO

 

[evilanne]

PessOptimist,

It is much better to have too much rather than too little insurance. The self +1 option, which all FEHB plans have, is less expensive than the family option. Good luck with figuring out Medicare.

Pay cut hasn't been that difficult to adjust to. When you figure out how much you are contributing to TSP, Retirement, Taxes (decreases), SS/Medicare you might be surprised how much you are actually living on now.