Tailored Plans for Federal Employees
Federal Employee Retirement Planning
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Free Federal Employee Retirement Analysis
Federal Benefits
FERS Retirement Plan
TSP Investment Options
TSP Investment Options
The FERS retirement plan is a comprehensive retirement strategy that provides benefits from three different sources: a Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP). Two components of FERS, namely Social Security and TSP management, can transition with you to your next job if you decide to leave the Federal Government before retirement. To fund the Basic Benefit and Social Security portions of FERS, you are required to contribute your share each pay period. Your agency will withhold the cost of the Basic Benefit and Social Security through payroll deductions. Additionally, your agency contributes its portion as well. After you retire, you will receive monthly annuity payments for the remainder of your life.
TSP Investment Options
TSP Investment Options
TSP Investment Options
The TSP management component of the FERS retirement plan is an account that your agency automatically establishes for you. Each pay period, your agency contributes an amount equal to 1% of your basic pay into your TSP account. Additionally, you can make your own contributions, and your agency will provide a matching contribution. These contributions are tax-deferred, making them a valuable part of your Federal Employee benefits. The Thrift Savings Plan is overseen by the Federal Retirement Thrift Investment Board.
FEHB Coverage Details
TSP Investment Options
FEHB Coverage Details
As a Federal employee, you are eligible to elect Federal Employee benefits, including Federal Employee Health Benefits (FEHB) coverage, unless your position is excluded by law or regulation. Your agency applies these rules and determines your eligibility. All FEHB plans qualify as minimum essential coverage (MEC) and meet the Affordable Care Act's individual shared responsibility requirement for the covered individual. Additionally, all FEHB health plans are eligible employer-sponsored plans and align with the benefits provided under the FERS retirement plan. The health coverage of all the plans in the FEHB Program meets the Affordable Care Act’s minimum value standard, ensuring comprehensive benefits for each FEHB plan, while also supporting TSP management for your retirement savings.
FEGLI Insurance Info
Military Time Credits
FEHB Coverage Details
The FEGLI Basic insurance premium is a level rate per one thousand dollars of coverage, an important aspect of Federal Employee benefits. This level premium feature ensures that the enrollee's premium rates remain consistent throughout the coverage period. The rate for an individual enrollee does not change as they age, even though the overall rate structure for all enrollees may be periodically adjusted based on claims experience. Consequently, a younger employee pays the same cost for Basic coverage as a 64-year-old retiree, which is a crucial consideration for those planning for their FERS retirement plan and TSP management.
Military Time Credits
Military Time Credits
Military Time Credits
The Military Buy Back Program (Military Service Deposit) allows federal employees to leverage their active military time for civil service retirement under the FERS retirement plan by making a deposit. This program can enhance their pension and potentially enable them to retire sooner. Typically, it requires an honorable discharge and a payment of 3% of military base pay plus interest, along with a possible 3-year interest-free grace period from the start of civilian employment. While it is a valuable federal employee benefit, individuals must carefully consider the costs against long-term gains. Additionally, most military retirees need to waive military retired pay to receive civilian credit, which is an important aspect in TSP management.
Retirement Prep: 5 Years Out
Review your service history: Confirm that all civilian and military service time (if applicable) is accurately recorded in your Official Personnel Folder (OPF). This is also the time to verify if a deposit or redeposit for service credit is required, which can impact your Federal Employee benefits. Confirm health and life insurance eligibility: Verify that you will meet the continuous five-year enrollment rule for both the Federal Employees Health Benefits (FEHB) and Federal Employees' Group Life Insurance (FEGLI) programs. Check your Social Security statement: Request an earnings and benefits estimate from the Social Security Administration (SSA). This helps determine eligibility and potential benefits, while also identifying any needed corrections to your earnings record. Review TSP investment strategy: Assess your current TSP management and decide if any changes are necessary to align with your FERS retirement plan timeline and risk tolerance. Start estimating retirement expenses: Create a realistic retirement budget based on your desired lifestyle. Review your last 12 months of expenses to use as a baseline.
Retirement Prep: 2-3 Years Out
Review your service history: Confirm that all civilian and military service time (if applicable) is accurately recorded in your Official Personnel Folder (OPF). This is also the time to verify if a deposit or redeposit for service credit is required, which can impact your Federal Employee benefits. Confirm health and life insurance eligibility: Verify that you will meet the continuous five-year enrollment rule for both the Federal Employees Health Benefits (FEHB) and Federal Employees' Group Life Insurance (FEGLI) programs. Check your Social Security statement: Request an earnings and benefits estimate from the Social Security Administration (SSA). This helps determine eligibility and potential benefits, while also identifying any needed corrections to your earnings record. Review TSP investment strategy: Assess your current TSP management and decide if any changes are necessary to align with your FERS retirement plan timeline and risk tolerance. Start estimating retirement expenses: Create a realistic retirement budget based on your desired lifestyle. Review your last 12 months of expenses to use as a baseline.
Retirement Countdown
Review your service history: Confirm that all civilian and military service time (if applicable) is accurately recorded in your Official Personnel Folder (OPF). This is also the time to verify if a deposit or redeposit for service credit is required, which can impact your Federal Employee benefits. Confirm health and life insurance eligibility: Verify that you will meet the continuous five-year enrollment rule for both the Federal Employees Health Benefits (FEHB) and Federal Employees' Group Life Insurance (FEGLI) programs. Check your Social Security statement: Request an earnings and benefits estimate from the Social Security Administration (SSA). This helps determine eligibility and potential benefits, while also identifying any needed corrections to your earnings record. Review TSP investment strategy: Assess your current TSP management and decide if any changes are necessary to align with your FERS retirement plan timeline and risk tolerance. Start estimating retirement expenses: Create a realistic retirement budget based on your desired lifestyle. Review your last 12 months of expenses to use as a baseline.
Retirement Checklist: 6 Months Out
Review your service history: Confirm that all civilian and military service time (if applicable) is accurately recorded in your Official Personnel Folder (OPF). This is also the time to verify if a deposit or redeposit for service credit is required, which can impact your Federal Employee benefits. Confirm health and life insurance eligibility: Verify that you will meet the continuous five-year enrollment rule for both the Federal Employees Health Benefits (FEHB) and Federal Employees' Group Life Insurance (FEGLI) programs. Check your Social Security statement: Request an earnings and benefits estimate from the Social Security Administration (SSA). This helps determine eligibility and potential benefits, while also identifying any needed corrections to your earnings record. Review TSP investment strategy: Assess your current TSP management and decide if any changes are necessary to align with your FERS retirement plan timeline and risk tolerance. Start estimating retirement expenses: Create a realistic retirement budget based on your desired lifestyle. Review your last 12 months of expenses to use as a baseline.
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Martin Hearn Investment Advisor Representative DBA Hearn Wealth Management LLC
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