Retire at age 55?

[Wheels]

Thanks Dave: I did check into that and it does not count for us FEDS. Typical I guess since they leave us so little options for ous LEO'S that retire "early".

Ron

Bummer. I wish it did because then we could lobby Congress to include ATC.

 

[VegasTSP]

Hey experts...
Wife is ATC and wants to retire at min age of 49 with 25 years service thats about 6 years away. She has about 360K in the TSP. We differ on when she should retire. I thinks she should retire at 52 when the kid is done with college. What do you guys think? Is she on a good track to retire at 49?

 

[vol46]

Would be nice if all of FERS got that 40% payout.
Have over $13,000 in sick leave. 40% better than nothing.
Later, Vol46

 

[jayhawker]

Would be nice if all of FERS got that 40% payout.
Have over $13,000 in sick leave. 40% better than nothing.
Later, Vol46

I'm FERS and I have over $47k in sick leave! :blink:

 

[Wheels]

Hey experts...
Wife is ATC and wants to retire at min age of 49 with 25 years service thats about 6 years away. She has about 360K in the TSP. We differ on when she should retire. I thinks she should retire at 52 when the kid is done with college. What do you guys think? Is she on a good track to retire at 49?

I would need a lot more info to make that call but I'll give you a couple of thoughts.

-Keep in mind that she will get a SS supplement. I can walk you through how to figure out how much if you like.
-If she stays until 52, I would be tempted to stay until 55, to get the TSP payments without penalty.
-If she stays until 55, then I would be tempted to stay until 56 to get the 1.7% per year (of course they could always yank that carrot after you put the time in). That would be a sizeable jump in pension.

 

[Ed]

Could someone walk me through the SS supplemental calculation. I'm FERS and have 17 months to hit magic MRA with 30 years of fed/postal service. I'd would have 21.5 years of FERS (plus 9 years of SS from private sector) and 8.5 years of CSRS.

Thanks.

 

[Wheels]

Could someone walk me through the SS supplemental calculation. I'm FERS and have 17 months to hit magic MRA with 30 years of fed/postal service. I'd would have 21.5 years of FERS (plus 9 years of SS from private sector) and 8.5 years of CSRS.

Thanks.

I'm better at this for ATC who are all FERS but I'll give it a try. Keep in mind that I did not sleep in a Holiday Inn Express last night.

Unfortunately only your FERS years will impact you SS supplement.

First you have to figure out what you SS payment is going to be when you turn 62. A lot of people mistakenly think this is the number printed on their statement that they get from SS each year. That number only applies if you work until you are 62. To get your age 62 number go to www.ssa.gov. Under "Retirement" there will be a link that says calculate your benefits. Click on this and then choose the middle calculator titled "Online Calculator". This page will be a questionaire. You'll need your most recent annual statement to fill out the annual earnings portion. This calculator will give your age 62 benefit..... THEN, to figure out what your supplement will be (the supplement is paid by OPM, not SSA) you need to multiply the age 62 amount by your number of FERS years over forty, 21.5/40 or 53.75%. You will get your supplement and your pension in the same check each month. There are no annual increases to your supplement. When you turn 62, OPM will stop paying the supplement. You'll have to decide whether you want SSA to immediately start making payments or if you want to wait for a few years to get a higher amount. Without going into the details, most experts feel that getting the reduced payment at age 62 is the way to go. There is another calculator on the SSA website to help you make this decision.

Hope this wasn't too much to follow.

 

[Wheels]

Hey experts...
Wife is ATC and wants to retire at min age of 49 with 25 years service thats about 6 years away. She has about 360K in the TSP. We differ on when she should retire. I thinks she should retire at 52 when the kid is done with college. What do you guys think? Is she on a good track to retire at 49?

I love these people who post questions and then never seem to return to read the answers.

 

[Wheels]

Could someone walk me through the SS supplemental calculation. I'm FERS and have 17 months to hit magic MRA with 30 years of fed/postal service. I'd would have 21.5 years of FERS (plus 9 years of SS from private sector) and 8.5 years of CSRS.

Thanks.

Is this another example of someone else asking a question and then never returning for the answer?

 

[Scout333]

Thanks for your explanation! There are lots of us out here interested in how these calculations work.

 

[Wheels]

Thanks for your explanation! There are lots of us out here interested in how these calculations work.

Your welcome.

 

[Ed]

Thanks for the reply which is the assumption that I believe is accurate.

The only difference that I'd add is that the fraction in my case 21.5 over 40 would be 21/40 if I retire anytime before Dec. 31st. It seems FERS employees have to work a full year under FERS to be computed in the Retirement Supplement.

Ed

 

[Ed]

Is this another example of someone else asking a question and then never returning for the answer?

I'm still trying to navigate through www.tsptalk.com and never sure to whom I'm replying. I've responded to this inquire which I think may show up on the original thread. In any case, I do appreciate all the input that everyone shares on this web site.

Many thanks.

Ed

 

[Show-me]

Sick leave, don't get me started!

Air Traffic controllers (not management) get 40% payout of sick leave, so I hope everyone else will get it soon. It only makes good financial sense. Pay 40% or 100% (people will use all they can).

Would be nice if all of FERS got that 40% payout.
Have over $13,000 in sick leave. 40% better than nothing.
Later, Vol46

I'm FERS and I have over $47k in sick leave! :blink:

Hum, 2080 hrs. of sick leave equals 1% more for your retirement if your CSRS. Base that on a nice round number of $50k it is an extra, get ready...........$500 a year. Whoohooo!!!!! Taking a year of sick leave is, get ready...........$50,000 and all of the Holiday you don't have to use sick leave so you will have 10 days of sick leave left over.

Lets see $500 X 100 years equals $50,000 :blink: If you don't feel well stay home and don't make me sick. :nuts:

FERS..........you get nada, nothing, zip. All lost and never to return. What a deal!!!

ATC folk: Did your union negotiate the 40% pay out? I know the answer because management did not get it and you did.

My feeling is until more sick leave is used/abused, no agency will willingly and voluntarily offer 40% cash back for unused S/L. Too many old timers are getting ready to retire and have nice fat S/L balances and they loose it automatically. Come on baby boomers, get those hips and knees replaced!

 

[Wheels]

Re: Sick leave, don't get me started!

ATC folk: Did your union negotiate the 40% pay out? I know the answer because management did not get it and you did.

Originally yes. However the agency recently nullified the contract and imposed a new set of work rules. They surprisingly kept the 40% pay out in there. Hopefully it'll still be there when I'm ready to go. Not that I have very much to sell. I was out for 7 months about nine years ago and have had trouble re-stocking since.

There are many controllers who take the attitude, "I'd rather use it at 100% than sell it back at 40%". This is very short sighted. Maybe some day I'll spell out why it is a good deal.

 

[Wheels]

Thanks for the reply which is the assumption that I believe is accurate.

The only difference that I'd add is that the fraction in my case 21.5 over 40 would be 21/40 if I retire anytime before Dec. 31st. It seems FERS employees have to work a full year under FERS to be computed in the Retirement Supplement.
Ed

I'm still trying to navigate through www.tsptalk.com and never sure to whom I'm replying. I've responded to this inquire which I think may show up on the original thread. In any case, I do appreciate all the input that everyone shares on this web site.
Ed

You are correct. I obviously didn't think that through.

And your welcome. I know it can be heard to find a thread you posted in if you wait for more than a day or so. I often wonder if that's what happens to people who ask a question and then never seem to return for the answer. Perhaps they just can't find their answers.

 

[bwolv]

Thanks for the information on the way the SS Supplement is calculated, But I'm still confused on one point. You say the SS Statement recieved in the mail is the wrong value, (as it assumes you'll work to age 62), But the online calculator makes the same assumption. Could you clarify for me what data I should put in the online calculator to reach the correct value? Is it only my FERS income years, (none prior to FERS employment) with the assumption that I'd retire at age 50 (ATC)??

Would it be fair to use the mailed SS statement (age 62) value multiplied by my FERS years/40?

Thanks
Bwolv ZAN

I'm better at this for ATC who are all FERS but I'll give it a try. Keep in mind that I did not sleep in a Holiday Inn Express last night.

Unfortunately only your FERS years will impact you SS supplement.

First you have to figure out what you SS payment is going to be when you turn 62. A lot of people mistakenly think this is the number printed on their statement that they get from SS each year. That number only applies if you work until you are 62. To get your age 62 number go to www.ssa.gov. Under "Retirement" there will be a link that says calculate your benefits. Click on this and then choose the middle calculator titled "Online Calculator". This page will be a questionaire. You'll need your most recent annual statement to fill out the annual earnings portion. This calculator will give your age 62 benefit..... THEN, to figure out what your supplement will be (the supplement is paid by OPM, not SSA) you need to multiply the age 62 amount by your number of FERS years over forty, 21.5/40 or 53.75%. You will get your supplement and your pension in the same check each month. There are no annual increases to your supplement. When you turn 62, OPM will stop paying the supplement. You'll have to decide whether you want SSA to immediately start making payments or if you want to wait for a few years to get a higher amount. Without going into the details, most experts feel that getting the reduced payment at age 62 is the way to go. There is another calculator on the SSA website to help you make this decision.

Hope this wasn't too much to follow.

 

[Wheels]

Thanks for the information on the way the SS Supplement is calculated, But I'm still confused on one point. You say the SS Statement recieved in the mail is the wrong value, (as it assumes you'll work to age 62), But the online calculator makes the same assumption. Could you clarify for me what data I should put in the online calculator to reach the correct value? Is it only my FERS income years, (none prior to FERS employment) with the assumption that I'd retire at age 50 (ATC)??

Would it be fair to use the mailed SS statement (age 62) value multiplied by my FERS years/40?

Thanks
Bwolv ZAN

The online calculator does not make that assumption. I think you are misreading the note that says if you put in an age prior to 62, it uses the 62 benefit. But all this is saying is that it assumes you will want to start collecting at 62 rather than waiting till later.

To prove my point, fill in all your data and use age 50, then age 55, then age 60. You will get different benefits each time.

If you use the mailed statement instead of the calculator, you will get a figure that is too high, but I do not think it is by all that much.

 

[bwolv]

OK, I think I got it....
Thanks Dave!