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William  
#41 Posted : Wednesday, January 08, 2014 11:56:35 PM(UTC)
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Unless you are making a huge salary or getting an exceptionally small retired pay, this is not a good idea. Simply put, FERS employees get 1% for each year, so 20 additional years is an additional 20%. The military gives you 50% of your base pay at 20 years. Using my own case as an example: I receive $3,340. in military retired pay each month. I would need to have as my high three over $200,000/yr just to make up that amount. $200k x .20 = $40k/12 = $3,333/mo

Also you don't keep getting your retired military pay once you do the conversion. It ends forever. However, if you are a reservist, and have completed enough time for reserve retirement, then you can take whatever active time you have and convert that, and you're still going to get your reserve retired pay at age 62.
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BootnGrind on 1/19/2018(UTC)
Pick  
#42 Posted : Thursday, January 09, 2014 12:40:06 AM(UTC)

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Your military retired pay does not stop when you buy back, it stops at the point you start drawing your civil service retirement. As stated, for many retirees, it doesn't make sense. Folks who took REDUX may want to do a very detailed analysis, as they may realize some added benefit over other military retirees, especially if they are GS13 and above.
edalder  
#43 Posted : Thursday, January 09, 2014 1:46:40 AM(UTC)

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Folks need to do the math on this one. Someone mentioned the FERS supplement. However, the military time is not used in the computation of the supplement, even if you do buy it back. Moreover the supplement ends at age 62.

Most military retirees probably start in Government service in their late thirties or early forties, so they do not qualify for a "full" FERS retirement, including supplement until age 60. The appeal of the buy back is the ability to retire with a "full" retirement earlier than age 60. For most folks, however, that would be, at most, between three and four years (depending upon date of birth). You would need to weigh how much you truly wish to retire at your MRA (to include the supplement) versus what you give up on a long term basis, including the cost of that deposit, the earlier loss of your military retirement pension, etc., when you do retire.

For many folks in FERS, I doubt that this one makes long term financial sense, even if it might mean more monthly money at retirement on a short term basis.

If a civil service military retiree really want to leave at MRA (probably 56 or 57 for most folks these days), that military retirees probably would have enough service time to retire under an MRA + 10 upon reaching MRA. Some might have to work a little longer if they did not start Federal service immediately after retiring from the military so as to reach those ten years.


Kivi
FatHappyCat  
#44 Posted : Thursday, January 09, 2014 2:19:00 AM(UTC)

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Cause that happens a lot...that E5 retiring then getting an SES.
martyb  
#45 Posted : Thursday, January 09, 2014 10:27:44 AM(UTC)

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MFFJM2 wrote:

However, if you are a reservist, and have completed enough time for reserve retirement, then you can take whatever active time you have and convert that, and you're still going to get your reserve retired pay at age 62.


Age 60martyb2014-01-09 18:34:20
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Pick  
#46 Posted : Thursday, January 09, 2014 10:33:17 AM(UTC)

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Or younger with deployment time.
martyb  
#47 Posted : Thursday, January 09, 2014 10:34:54 AM(UTC)

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Pick wrote:
Or younger with deployment time.


True - forgot
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Not retiring yet  
#48 Posted : Thursday, June 01, 2017 10:03:21 AM(UTC)
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Originally Posted by: IT-Fed Go to Quoted Post
GYSGTJORDAN wrote:
Wow! I had no idea this topic still had legs. I had decided to talk to an experience HR lady here and ask about Special Retirement Supplementunder FERS, as this is another wrinkle to this saga.I must say that yourvery simple break down of the factswere very impressive IT-Fed. Thanks everyone for yourhelp and more importantlyyour service.

Gods Speed.....


Glad to assist. My information is based on years of research and ferreting out facts from fiction.

I just submitted my military deposit. Assuming it's still there (given the latest banter on the hill about potentially doing away with the supplement), being able to retire early (before 60 or later) is important to me. The FERS supplement will be around 60K, so this amount will more than pay for the military deposit.


AMAZING, if this was posted 5 years ago, and talking about the supplement going away, well it is full circle again. Because that is what is in the budget. I was looking for info, and found it here, but, Supplement 60 K Again amazing. Was that a total of annuity? and supplement ? If I could have retired at that figure, it would have been nice.
IT-Fed  
#49 Posted : Friday, June 02, 2017 1:02:10 PM(UTC)
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re: GYSGT Jordan's post (from yesterday)

The $60K was the FERS Supplement alone, based on (then) retiring at my MRA (56) and receiving the supplement for 6 total years. Since I'm still working, the supplement will be much less.

I am closely watching the potential to eliminate the supplement, as well as the proposal to change the "High 3" (to "high 5") years of salary computation and increase contribution amounts to our pension...

These three items will directly influence when I "go."

Edited by user Friday, June 02, 2017 1:04:30 PM(UTC)  | Reason: Not specified

burnedout  
#50 Posted : Thursday, January 04, 2018 12:08:20 PM(UTC)
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Originally Posted by: street walker Go to Quoted Post
Wow,I bought back my 4 year's of active duty and I am also a retired air force reservist and am 50 years old.when I turn 60 I expect to receive my retirement pay.I work at the USPS with 28 years of service,I will have 34 years at the age of 56 at which time I plan on retiring for good.I also receive va disability,do I get all three?


yes,you get all three as I do.Your va disability rating must be 50% or higher.
thanks 1 user thanked burnedout for this useful post.
BootnGrind on 1/19/2018(UTC)
0018 Hopeful  
#51 Posted : Tuesday, March 20, 2018 3:40:34 AM(UTC)
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I am a retired E6 with 20 years.

I got hurt at 16 years, had multiple surgeries and some how (mostly because I was overseas) got to retire at 20.

I took the Career Status Bonus to save my clearance and pay off the residuals of a nasty divorce at the 15 year mark. So I am not sure how this affects my overall number.

Because of CSB I do not get increases in retired pay. I retired 5 years ago and have yet to get any more than $1456.23 or something like that monthly since I retired. Allegedly at 62 I am supposed to get more money. I am not sure what that number will be. The number I was quoted when I retired is $3600 per month. But it is based on what all the non-CSB kids get for a retirement.

So does this math work. I am guessing GS-13 at $120,000 (very conservative number, I guess).

GS-13 at $120,000 at 62 is 23 years of service at .011x23 years is .253% is $30,360 plus $18,000 military retirement.

Versus buying out my 20 years same scenario.

GS-13 at $120,000 at 62 is 43 years of service at .011x43 years is .473% is $56,760 about $8000 per year over my current scenario.

Versus getting into the FS in my series

FS-2 at $140,000 at 62 is 43 years of service. only about 18 at .022 and the other 25 at .010 is $90,440 I think with the Foreign Service only FS times counts for .20 or .22 if you make it to 62.



Versus
frankgonzalez  
#52 Posted : Wednesday, March 21, 2018 4:15:24 AM(UTC)
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Originally Posted by: 0018 Hopeful Go to Quoted Post
I am a retired E6 with 20 years.

I got hurt at 16 years, had multiple surgeries and some how (mostly because I was overseas) got to retire at 20.

I took the Career Status Bonus to save my clearance and pay off the residuals of a nasty divorce at the 15 year mark. So I am not sure how this affects my overall number.

Because of CSB I do not get increases in retired pay. I retired 5 years ago and have yet to get any more than $1456.23 or something like that monthly since I retired. Allegedly at 62 I am supposed to get more money. I am not sure what that number will be. The number I was quoted when I retired is $3600 per month. But it is based on what all the non-CSB kids get for a retirement.

So does this math work. I am guessing GS-13 at $120,000 (very conservative number, I guess).

GS-13 at $120,000 at 62 is 23 years of service at .011x23 years is .253% is $30,360 plus $18,000 military retirement.

Versus buying out my 20 years same scenario.

GS-13 at $120,000 at 62 is 43 years of service at .011x43 years is .473% is $56,760 about $8000 per year over my current scenario.

Versus getting into the FS in my series

FS-2 at $140,000 at 62 is 43 years of service. only about 18 at .022 and the other 25 at .010 is $90,440 I think with the Foreign Service only FS times counts for .20 or .22 if you make it to 62.



Versus
You forgot to figure in the cost of the deposit needed to buy back that 20 years (plus any interest that may have accrued). So you need to see when the pay back of the deposit occurs before you start reaping any benefits.

Also, not certain where you get the $3600 for E-6 mil retired pay from. Were you making $7200 a month base pay prior to retirement? (as an E-6, I doubt it). Your retired pay may increase by a few hundred dollars, not more than double. If you retired today with 20 years, you would get less than $2k a month in retired pay. Based on the pay chart for 2013, an E-6 makes $3650 base pay...50% of that is obviously dramatically less!
You should have voted Cthulu...the greatest of all Evils
0018 Hopeful  
#53 Posted : Thursday, March 22, 2018 10:31:54 PM(UTC)
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Frank,

Lots of research on this one, as I had forgot a couple details.

CSB folks get a very low COLA increase, I forget the factor but basically it is 1-2 percent less than whatever the normal retired COLA is. So in essence I have not gotten an increase since 2013.

At 62 we go to 50% retirement vice our current 40% retirement, at whatever the current COLA rate is at the time. That is where I get $3600. I have no idea what that number will be. 20 year E6s don't make much more than I did in 1993. I think they are $280 or something like that up from what I made now in 2018. Which is something like $65 per year of an increase (not the correct way to think about it, but for the sake of quick math). Half of $65 times the number of years between now and the year I turn 62 plus current base ends up with a number near $2500, bad increases good increases in COLA could be $2000-4000 depends on how many time congress raises retirement COLA.

The good news is my VA disability checks will continue to go up.

In hindsight taking the CSB did 3 things for me. Cleared me out of financial problems with a venomous ex-wife, allowed me to pay off things that would have affected my clearance, which ultimately got me the job I have now.

It sucks, but I am thankful for the options it gave me back then. There were probably better options, but I was deployed to Afghanistan and it was hard to get through the communication channels from the field to get things taken care of.
0018 Hopeful  
#54 Posted : Thursday, March 22, 2018 10:33:50 PM(UTC)
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On to the topic of buy back.

I am going to wait to see where I flesh out on the rank schedule after I am 55 to see if it is worth it.
Exit7A  
#55 Posted : Saturday, March 24, 2018 6:51:06 AM(UTC)
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Originally Posted by: 0018 Hopeful Go to Quoted Post
On to the topic of buy back.

I am going to wait to see where I flesh out on the rank schedule after I am 55 to see if it is worth it.


You can request your military earnings to get an idea of what your deposit will cost.
That's all I got to say about that.
j2huggies  
#56 Posted : Tuesday, May 01, 2018 2:34:23 PM(UTC)
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I did my Buyback form... still haven't turned it into CPAC.
-J Hughes
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frankgonzalez  
#57 Posted : Wednesday, May 02, 2018 3:17:58 AM(UTC)
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Originally Posted by: 0018 Hopeful Go to Quoted Post
Frank,

Lots of research on this one, as I had forgot a couple details.

CSB folks get a very low COLA increase, I forget the factor but basically it is 1-2 percent less than whatever the normal retired COLA is. So in essence I have not gotten an increase since 2013.

At 62 we go to 50% retirement vice our current 40% retirement, at whatever the current COLA rate is at the time. That is where I get $3600. I have no idea what that number will be. 20 year E6s don't make much more than I did in 1993. I think they are $280 or something like that up from what I made now in 2018. Which is something like $65 per year of an increase (not the correct way to think about it, but for the sake of quick math). Half of $65 times the number of years between now and the year I turn 62 plus current base ends up with a number near $2500, bad increases good increases in COLA could be $2000-4000 depends on how many time congress raises retirement COLA.

The good news is my VA disability checks will continue to go up.

In hindsight taking the CSB did 3 things for me. Cleared me out of financial problems with a venomous ex-wife, allowed me to pay off things that would have affected my clearance, which ultimately got me the job I have now.

It sucks, but I am thankful for the options it gave me back then. There were probably better options, but I was deployed to Afghanistan and it was hard to get through the communication channels from the field to get things taken care of.

A lot of "maybe" in that math.

I retired at E-6 with 22 years, 4 months 27 days of service (I get 55% of base pay for retirement). I ran the numbers and it didn't make sense to buy back my time...and I'm a GS-14 right now. The cost to buy back the time pushes my break even point way too many years beyond my MRA (and who knows if I will make it that long!) vs simply taking my mil retired pay and putting that into a good index fund for the same amount of time. The latter gives me access when I need it and pays right away, but the former requires a large outlay up front...and my civ retired pay doesn't increase much more than the delta between my mil retired pay and the new civ retired pay.

I worked out I would have to be a SES II or higher for it to be worth the the buy back and the break even point to be reasonable.

Now...and E-5 with 20 years who is a GS-15 or above....that could be a different story.
You should have voted Cthulu...the greatest of all Evils
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