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Federal Employment Retirement Benefit Formula

Benefit Formula How your benefit is calculated as follows. Your benefit is based on your “high-3 average pay.” This is figured by averaging your highest basic pay over any 3 consecutive years of creditable service. Generally, your benefit is calculated according to this formula: 1% of your high-3 average pay  X  years of creditable service If you retire at age 62 or later with at least 20 years of service, a factor of 1.1% is used rather than 1%. To determine your length of service for computation,...

Newly Hired Federal Employees Must Contribute More to Retirement

Congress finally came together on a budget deal without resorting to shutdown threats again. Federal retirement benefits have increased by 1.5 percent for those retired under CSRS and those under FERS who are eligible for COLAS. The increase also applies to Social Security, military retirement and survivor benefits. However, the budget deal also imposed a different kind of increase. Starting January 1, new federal employees' mandatory retirement contributions have risen an additional 1.3 percent of salary—bringing the total...

2014 Federal Handbooks Now Available

ARLINGTON, VA - Federal Handbooks has released their FREE 2014 handbooks for federal employees. These handbooks, written specifically for federal agency employees, include a variety of information about pay, benefits, education, travel, healthcare and retirement. Download any of the handbooks for FREE or purchase a printed copy. Don't forget to tell all of your federal colleagues about these free handbooks too! 2014 Federal Handbooks - Now Available - 2014 FEDERAL RETIREMENT HANDBOOK - 2014 FEDERAL HEALTH BENEFITS...

FERS and Accumulated Sick Leave

The 2013 leave year doesn’t end until Jan. 11, 2014, so if you are planning a retirement date and have accumulated annual leave and sick leave, you need to factor how you can make the most of your benefits. If you retire before Jan. 1, 2014, you’ll only get half credit for your unused sick leave in the computation of your annuity. After Jan. 1, 2014, unused sick leave is credited at 100 percent to the employee at retirement. However, it has no cash value. Instead those hours are added to any actual service...

1.5 Percent COLA for Federal Employee Retirees in 2014

Federal civilian retirees will receive a 1.5 percent cost-of-living adjustment (COLA) in 2014.  Retirees covered under the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) will see the increase starting in their January 2014 payment. The COLA will also apply to tens of millions of recipients of Social Security and veterans benefits. Despite the increase being smaller than previous years Joseph Beaudoin, president of the National Active and Retired Federal Employees Association,...

Requirements for Keeping Life Insurance in Federal Retirement

You can keep your basic life insurance in retirement if all of the following conditions are met: 1. You have coverage when you retire; 2. You have not converted coverage to an individual policy; 3. Your annuity must begin within 30 days or, if you are retiring under the Minimum Retirement Age (MRA) plus 10 provision of the Federal Employees Retirement System (FERS), health and life insurance coverages are suspended until your annuity begins, even if it is postponed; and 4. You were insured for life insurance for the five...

Health Insurance Coverage After Federal Retirement

Health Insurance Benefits After Retirement You may continue your heath insurance coverage after retirement if you meet the following conditions: 1. Your annuity must begin within 30 days or, if you are retiring under the Minimum Retirement Age (MRA) plus 10 provision of the Federal Employees Retirement System (FERS), health and life insurance coverages are suspended until your annuity begins, even if it is postponed. 2. You must be covered for health insurance when you retire. 3. You must have been continuously covered...

Civil Service Retirement System Basics

The Civil Service Retirement System (CSRS) originated in 1920 and since then has provided retirement, disability and survivor benefits for most civilian employees in the federal government. Prior to that time, many civilian employees in the federal government simply worked until they died because there was no means of support for them if they were to quit their jobs. Over time, the Civil Service Retirement System has become a progressive element in the personnel management system. Benefits have continued to evolve. They...

The Federal Employees Retirement System

The Federal Employees Retirement System, or FERS, became effective January 1, 1987. Almost all new employees hired after December 31, 1983, are automatically covered by FERS. Certain other Federal employees not covered by FERS have the option to transfer into the plan. FERS is a three-tiered retirement plan including the following components: 1. Social Security Benefits 2. Basic Benefit Plan 3. Thrift Savings Plan   You pay full Social Security taxes and a small contribution to the Basic Benefit Plan. In addition,...

Eligibility for Health Benefits after Federal Employment Retirement

When you retire, you are eligible to continue health benefits coverage if you meet all of the following requirements: •  you are entitled to retire on an immediate annuity under a retirement system for civilian employees (including FERS MRA + 10 retirements); and •  you have been continuously enrolled (or covered as a family member) in any FEHB plan(s) for the 5 years of service immediately before the date your annuity starts, or for the full period(s) of service since your first opportunity...

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