Stoplight's Retirement Story (FERS, Gap in Service, Military Buy-Back)

[Stoplight]

All,

Okay, so I've gotten so much useful information, and entertainment, from this Board...I figure it's time to give back a little, if I can... Now that I've decided to retire, I'm going to follow other smart people's lead, and post my experiences on this thread, in the hope that others might benefit from my experiences...we can share some good points and "gotcha's" with those coming up...

While the "Great Unwashed Public" lumps all of us Feds into the same box, it strikes me how different each and every one of us is...so many variations on being a "Fed", and our personal situations ! I remember an incident, several years ago...a neighbor asked me if I knew a friend of hers...said she worked for Social Security. It didn't matter that I worked for DOT...in her mind, all us Feds know each other !

To start off my "Voyage", here's the basics :

- Retirement date 30 Apr 2012
- FERS
- 30 years credit a/o Nov 2011, with 4 years military (USAF) deposit in 2005
- MRA is 56 ; I’ll turn 57 in April
- A few different agencies as a civilian (Army, DOT, Navy)
- A gap in service between 2007 and 2009 ; left the Feds in 2007, returned in 2009

- Wife already retired ; public school Teacher with a pitiful pension, and a 403(b)

So that's my "starting point"...will post my thoughts and experiences as I move through the pipeline !

Stoplight...

 

[PessOptimist]

Good luck Stoplight. You may be the first FERS person to post your retirement story here. With the different agencies involved and a gap in service this could be interesting.

I get what you mean about lumping us all together. When I was on active duty people used to ask me why the Chief of Staff or any spokesperson on the news said what they did. After a while I just told them, "they never listen to me". Lot's of "do you know him/her?" questions too about anyone in uniform in the news.

As a Fed civilian, I am often asked about why I allowed something to happen that is seen on the news. I also get asked if I know cabinet level people. Most of the "Great Unwashed Public" do not realize that congresscritters are also Feds. It never occurs to them that federal level elected/appointed officials are federal employees.

 

[clester]

- Wife already retired ; public school Teacher with a pitiful pension, and a 403(b)

Stoplight...

I'm in a similar position, as my wife is a public school teacher. Although, I'm retire and she isn't. I wonder what you two think of all the teacher bashing going on. They made a big deal in Wisconsin about the great benefits including pensions that teachers get. My wife would like to be able to retire, mainly because of this stuff, but she is too young (50).

Good luck to you.

 

[nasa1974]

Stoplight, What did you do in the Air Force? My experience was minuteman missiles, stationed at F.E. Warren AFB in Cheyenne , Wyoming. 8/70 to 4/74. Basic training at Lakeland, 9 months at Chanute for tech school and then FEW. I was told by my HR rep at NSSC that OPM has added more personnel and the turn around times will be getting shorter. We can only hope. Good luck and congrats.

 

[Stoplight]

Good luck Stoplight. You may be the first FERS person to post your retirement story here. With the different agencies involved and a gap in service this could be interesting.

Thanks, PessOptimist ! Although I don't WANT my retirement journey to be TOO interesting :worried:

Actually, my experience does have some twists to it...that's why I thought I'd share !

Stoplight...

 

[Stoplight]

I wonder what you two think of all the teacher bashing going on.

Oh man, clester...don't get us started on THAT ! That's a whole new thread

Just like us Feds, there are "good" Teachers, and there are "bad" Teachers...my Wife was a "good" Teacher. It's the "bad" ones that cause us all to get tarred with the same brush.

Some observations ? When my Wife started teaching, she could paddle a kid...didn't like to do it ; would come home and cry afterwards, but it was a tool in the toolbox. Now, you can't touch a kid, even to give them a hug that so many desperately need...times have changed...

She taught public schools for 34 years...special ed, and elementary school grades 1 and 4. When she retired in 2009 at age 57, she was just burned out...the paperwork, the "structured" curriculum/standardized tests, the things she was expected to teach, that WE learned from our parents and family ! She just didn't have the energy to do it anymore...

In her State, she made good money as a Teacher, but the pension isn't much...we understand, in other States, the take home pay ain't great, but the retirement pension is outstanding. I don't know where Wisconsin falls on that scale...

I'll have more to say on our "Plans", and how we're managing them, in a future post about our experiences.

Thanks for your post, and best of luck to you and your Wife as she moves closer to retirement !

Stoplight...

 

[Stoplight]

Stoplight, What did you do in the Air Force? My experience was minuteman missiles, stationed at F.E. Warren AFB in Cheyenne , Wyoming. 8/70 to 4/74. Basic training at Lakeland, 9 months at Chanute for tech school and then FEW. I was told by my HR rep at NSSC that OPM has added more personnel and the turn around times will be getting shorter. We can only hope. Good luck and congrats.

Thanks, Nasa...I was a non-rated Civil Engineer Guy...not a "Pocket Rocket" Guy like you Let's just hope OPM gets their "stuff" together !

Stoplight...

 

[Stoplight]

So why did I decide to retire now ?

Well, for various reasons, many of which you all have noted on this Board, and have concerned me, too ! But for me, it boils down to the following :

- Because I recently learned that I can ! This involves my gap in service, but I’ll discuss that in a post by itself...a critical issue for me...

- The Wife and I have looked at our situation, and crunched the numbers, and it looks like we can survive

- In my current Navy job, I’m involved in the construction side of the house. Right now, I don’t see a lot of new projects in the pipeline for the next 3 years, with budget cuts, etc. They’re saying no RIFs or “early outs”, but possibly reassignments...

- I took a downgrade to come back to the Feds and this job ; thus, I earned my “high-3" a while ago, and the potential to go to a “high-5" would screw me. Again...I’ll address this whole issue in more detail by itself later...another critical issue !

We based our decision to go now on the above...more to follow !

Stoplight...

 

[Stoplight]

So, why the 30 April date ?

Well, for us FERS Folks, you gotta go by the end of the month, IF you want the pension to begin 1 June ! Since it’s mid-pay period, I won’t get credit for that last 8 hours annual leave, because I won’t retire at the end of the full pay period to get credit. However, the 30th is a Monday, and the previous Friday is my RDO under our “Alternative Work Schedule”, so I’ll take the 30th as annual leave, and technically, my last work day will be Thursday, the 26th.

That Friday, my RDO, is also our pay day...that should put my final (shortened) paycheck on 11 May. If I don’t get my annual leave lump sum then, it’s supposed to come on the 25 May pay date. In either case, I’ll have a little income hitting the bank in May ! I’ll have ~ 200 hours of a/l to sell back...

Stoplight...

 

[uscfanhawaii]

Congrats on your upcoming retirement, Stop! I am also FERS, having switched from CSRS back when FERS came out! I am eligible Nov 12, and will be 58 then. So I will be following your thread closely! I may not go in Nov, altho.....we are still Young!! What will you do in retirement? Are you thinking about starting another career? I was thinking about teaching as a second career, but your wife's story makes me think twice!! :worried:

Enjoy your retirement!

 

[nasa1974]

That Friday, my RDO, is also our pay day...that should put my final (shortened) paycheck on 11 May. If I don’t get my annual leave lump sum then, it’s supposed to come on the 25 May pay date. In either case, I’ll have a little income hitting the bank in May ! I’ll have ~ 200 hours of a/l to sell back...

Stoplight...

Stoplight, Sure hope you're correct on the AL lump sum. I was told it could take up to 3 pay periods to get the check. I'm not sure if they meant 3 two week periods or 3 retirement periods. I guess I should ask again. I should be selling back about 300 hours. Keeping a close eye on my SL as well. I don't want to give to many days back.

 

[Stoplight]

What will you do in retirement? Are you thinking about starting another career? I was thinking about teaching as a second career, but your wife's story makes me think twice!! :worried:

Enjoy your retirement!

Many thanks for the well-wishes, USC Fan !

The post-retirement work question is a whole 'nother "issue", isn't it ? I've started a list of things I'd like to do (not a "Bucket List", but I have one of them started, too !) Rather, I'm looking at what I like to do now, and what I liked to do in my previous life ! I have some thoughts on what might work for me, and I've started exploring those options, but you have to balance the income you might receive from those activities, against the limitations that exist before you start losing the annuity supplement, which I'll qualify for, initially. I'm an facilities engineer with Federal Acquisition experience (DAWIA Level II, for you Acquisition Folks !), and my sense is that there's a lot of companies out there that would love/need some "advice" on securing Government jobs...times are tough, and I might have some knowledge that would be helpful...

The Wife has chosen to pursue volunteer work with the USO...she's loving her new "role" !

I look forward to any questions you or others might have of my "Retirement Voyage"...we're all in this together !

Stoplight...

 

[Stoplight]

Stoplight, Sure hope you're correct on the AL lump sum. I was told it could take up to 3 pay periods to get the check. I'm not sure if they meant 3 two week periods or 3 retirement periods. I guess I should ask again. I should be selling back about 300 hours. Keeping a close eye on my SL as well. I don't want to give to many days back.

Nasa,

I'm just relaying what my HR Folks told me...the lump sum estimate for a/l was by "current" pay period...My Brother retired from DOD in Dec 2011, and he got his lump sum payout right away, so I suspect my info is good...at least, for DOD !

Stoplight...

 

[nnuut]

Nasa,

I'm just relaying what my HR Folks told me...the lump sum estimate for a/l was by "current" pay period...My Brother retired from DOD in Dec 2011, and he got his lump sum payout right away, so I suspect my info is good...at least, for DOD !

Stoplight...

NASA I got mine in 4 days!!!

 

[Stoplight]

The Gap

Having a gap in Federal service introduced a whole series of other issues to my retirement decision. To recap, I left the Feds in 2007, and returned in 2009. In hindsight, it was both one of the smartest, and dumbest, things I ever did !

Dumbest, because the gap invoked a bunch of rules I wouldn’t have had to deal with, had I stayed in my cushy Fed job. Smartest, because leaving maintained my sanity, and worked out, in the end. I’m not going to get into the specifics, but suffice to say, it was the right move for me, at the time !

So what did “The Gap” do to me ? First, although I got paid for my annual leave on the books, I lost a large chunk of sick leave. At that time, there was no provision for us FERS Guys to get any credit for sick leave. Now, there is ½ credit...I suppose I could apply for reinstatement of my sick leave, but I chalk it up to “life lessons learned”...

When I came back to the Feds, it was to a position with a different Agency, and 2 grades lower than what I left...However, it was in an area with a much lower cost of living, and the new Agency paid my moving expenses, and offered me a wage that topped me out on the GS pay band...after crunching the numbers, it made sense, so I took it ! I’m living where we want to be, and my “high-3" pension is based on my previous salary, way back when !

That's one of the scary things on the horizon that made me decide to bail...in my situation, if the Feds go to a "High-5" plan, that would mean ~$2,000 per year LESS on my pension...

The other major factor was the “5 year rule” for maintaining health insurance into retirement. The Wife’s health insurance was carried for her into retirement (we both carried “Self-Only” ; cheaper !), but we didn’t trust the School Board to maintain that coverage. Until just recently, I was under the impression that the 5 year clock started ticking when I came back. That meant that I needed to work until 2014 to carry that benefit into retirement, for me, and possibly her, if the School Board bailed out ! However, I recently discovered that the 5 year rule can span a break in service such as mine. The “rule” is...you have to have a minimum of 5 years service, counting before and after the gap, PROVIDED that you signed up immediately when you came back (which I did).

I found this out by fooling around on the OPM web site...once I learned this, I realized “Well, Heck ! I am FERS, and I have 30 years and the MRA (56 for me) as of Nov 2011...so I can go NOW !!!” I called our HR people, and confirmed this was the case....and made the decision to go !

Stoplight...

 

[Stoplight]

Retirement Benefit Estimate

I haven't seen this mentioned much, so I'll throw this out there. My Agency (Navy) has a service where you give them a proposed retirement date or dates, and they send you a pretty detailed estimate of your monthly retirement benefits as of those date(s). The estimate is based on info in your OPF, and includes your basic pension, with deductions you specify (survivor benefit, etc) as well as estimated deductions for your health care benefits and taxes.

In my case, it also included a correct calculation of my "high-3" (which occurred several years ago), and an estimate of the annuity supplement (which I'm eligible for). I was surprised at the level of detail provided...a great planning tool, and the folks were very helpful in answering any questions you might have on the estimate.

I don't know if ALL Agencies provide the same service, but if yours does, and you're nearing retirement, take advantage of it !

Stoplight...

 

[Stoplight]

Missing Paperwork

I Fed Ex’d my retirement package (SF-3107) to the HR Folks March 5th. Right on schedule (Mar 8th), I got a call from the HR Retirement Counselor, concerning my package.

She went over many of the issues that have been discussed on this Board, before...percentage of pay (60-80%) ; no annuity supplement until OPM does their thing ; wait 30 days after you retire before contacting TSP concerning your withdrawal ; make sure you have enough money to live on for several months !

She asked me for 2 things that were missing...first, was a copy of my marriage license ! Now, I have no idea where this was coming from...there’s a question and answer block on the -3107 that asks you some questions about your current and previous marriages, but I didn’t see anything about submitting a license.

Second, she needed something to prove I had bought back my military service. I thought that was curious, because the Navy did have my service computation date correct, which included the buy-back, as well as the adjustment for my gap in service. If I had worked for the Navy my entire career, it would be shown on my Leave and Earnings Statement (LES). However, as a guy who had come from another Agency, where I had made the deposit, they wanted proof !

The marriage license was no problem, but I had to find paperwork from 2005 to show I made the deposit. Fortunately, I was able to put my hands on an old LES that showed it. I was tickled to tell the Wife : “See ??? There’s a REASON I kept all these old pay stubs !!!”

The missing documents were emailed to HR on Mar 12...so far, no further communication from them, so I guess everything is moving !


Stoplight...

 

[Kaufmanrider]

I had been warned about the "proof of buyback of military time." My Agency has the online EOPF system. While reviewing it I noticed the paid in full receipt I had received back in 2003 was missing. I made a copy and sent it to my Agency. It has been included. I keep a copy at home and sent one to my parents, and I saved a couple scanned copies on computers at home.

Marriage license? Were you remarried during your government service?

 

[bjean]

Retirement Benefit Estimate

I haven't seen this mentioned much, so I'll throw this out there. My Agency (Navy) has a service where you give them a proposed retirement date or dates, and they send you a pretty detailed estimate of your monthly retirement benefits as of those date(s). The estimate is based on info in your OPF, and includes your basic pension, with deductions you specify (survivor benefit, etc) as well as estimated deductions for your health care benefits and taxes.

In my case, it also included a correct calculation of my "high-3" (which occurred several years ago), and an estimate of the annuity supplement (which I'm eligible for). I was surprised at the level of detail provided...a great planning tool, and the folks were very helpful in answering any questions you might have on the estimate.

I don't know if ALL Agencies provide the same service, but if yours does, and you're nearing retirement, take advantage of it !

Stoplight...

Not all agencies have great HR personnel for retirement, I have witnessed our retirement unit erode over the last few years. I too requested the retirement estimation which took 4 weeks to deliver. The FERS annuity is exactly the same as the automated self-query an employee can figure themselves. The estimation has written OPF not reviewed? I am questioning the FERS supplement, I have figured the estimation myself and also on a calculation tool on the internet and the HR person's estimate was $150 lower than my estimation! I have called and emailed the HR person wanting to know how this was calculated and still no answer. I am a FERS transfer from 1999, really regret that transfer but it will all work out. I have been watching this deal play that congress is pushing for the Part-time program for feds eligible to retire and starting to think it doesnt look that bad. Work two 10 days for the same pay same, might not be a bad idea!

 

[Stoplight]

Smart move, K !

I vaguely remember getting a letter/receipt when I wrote the check in 2005, but like an idiot, I didn't file that away in the lock box, like my DD-214, marriage license, etc :embarrest: It's probably packed in some box around here somewhere...

RE: the license...yes, I did get remarried while I was a Fed. I guess they're really concerned about an ex-wife's claim against your retirement benefits. I DO have a Separation Agreement from my ex, where she gave up any future claims, but they didn't ask for that. Now, THAT paperwork IS locked up !

The counselor mentioned that the license was something "OPM will want..." when they get the package.


Stoplight...