Retiring Soon? Here Are Answers to Some Common Questions

[tsptalk]

Retiring Soon? Here Are Answers to Some Common Questions
By Sno-Cap Agency
5/13/2007


When will I get my first payment?

As soon as OPM gets all your retirement records, OPM will provide “interim” payments. These payments are usually made in four days or less, on the first business day of each month. OPM tries to provide you with income until they finish processing your application.

More ... http://www.fedsmith.com/articles/articles.showarticle.db.php?intArticleID=1245

 

[Spaf]

Here is the crux of the matter!

Your personnel office has to prepare a retirement packet to send to OPM.

There are a lot of forms and stuff that make up your retirement packet. All the "i's" have to be dotted and all the "t's" crossed. So...you have to be working with your personnel folks prior to your retirement.

When OPM gets the packet they process it through. They are pretty quick, but imagine if they run into a bunch of boo-boo's.

So a big crux is ensuring that your agency personnel office has your packet all set up for processing!

Well that takes care of OPM, you still have to negotiate TSP and Social Security.

PS: Make an appointment to visit SS ahead of time. You want to talk to them 1 on 1.

 

[Wolverine]

Thanks......Tom and Spaf for this info.

One can never have enough of this stuff in order to keep current and get ready years ahead of time for hopfully a smooth transition with it all.

Thanks again.

 

[rokid]

FYI.

I retired on 4/1/2007. I got my first interim check on 5/1 ~ 76% of my regular annuity.

I just received a customized OPM booklet in the mail today. The booklet outlines all of my retirement benefits including the final amount of my annuity and the amount of my survivor benefit. It also provided the total amount of my career CSRS contributions. The latter is important because a portion of my monthly annuity is tax free - 1/360th of my total CSRS contributions.

I'm scheduled to receive my regular/full annuity check on 6/1.

DFAS and OPM are really on the ball!

 

[Spaf]

The IRS!

Prior to retirement you need to set up your financial plan with a reputable accountant familiar with tax deductions.

The older you get the more medical bills you have. Sorry, teeth and hair are gonners. But ED is correctable, so s_x is still on the bills! You need a small mortgage to ensure that you can itemize, and get the maximum deductions!

See your accountant, or you might give GeorgiaGirl a buzz, cuz she is a CPA (She posted that!).

I wish we had a list of retirees, doctors, lawyers, accountants, etc. But I don't know how to respect their confidentiallity.

Maybe one of the computer guru's can come up with a solution?......

 

[rokid]

FYI.

Under CSRS you can provide your spouse with a maximum lifetime survivor's benefit of 55% of your annuity. The maximum survivor's benefit costs 10% of the annuity to which you are entitled. I'm assuming that FERS provides a similar deal.

However, two aspects of this benefit surprised me:

1.) The 55% is calculated against the full annuity. For example, if you are entitled to $60,000 and take the full survivor's benefit, your reduced annuity is $54,000. However, your spouse's survivor benefit is $33,000 (.55 X 60,000). I was assuming it was 55% of $54,000. My wife sure was happy! I'll have to watch my back!:laugh:

2.) If you take the survivor's benefit and your spouse dies, your annuity reverts back to the full amount. In the case of the example above, from $54,000 to $60,000. Again, I assumed it would stay at $54,000.

Uncle is taking care of us, so far.....:nuts: