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Federal Retirees


For those approaching retirement as well as the currently already retired, here is a forum to share ideas and thoughts and exchange questions and answers.


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charliesangel  
#1 Posted : Friday, April 9, 2021 7:18:37 AM(UTC)

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Hello to everyone and thanks for reading/answering my question/musing

I am trying not to overthink this but it occurs to me that the FERS Supplement is such a good deal!

I see many discussions and articles about what month is the best to retire in and strategies to maximize annual leave and sick leave right down to making sure you retire on a certain day so you get the full 4 hours of sick credited for the payperiod you leave.

BUT if I am of the mindset that I want retire asap doesn't the FERS Supplement offset any of the discussions since the Fed. Gov is going to (in my case after I've calculated it) give me $1600/mo of free money until I reach age 62? My DOB makes me eligible to retire at 56 and 8 months which is MID-OCT2024. If I wait until 31DEC2024 as many seem to strategize I will be giving up about 2.5 months of retirement and $4,000 (fers supplement) Is there really any reason not to go as soon as I am eligible? Also is there a reason that I should be careful to not cut retirement too close to when the agency says my earliest retirement day is? Like are there horror stories of an agency saying a person was eligible on 10OCT2020 and so the person retired that DAY and then later there was an issue once OPM processed things and they discovered the Agency mistake and the person was not really eligible until say 17OCT2020 ? YIKES!!!
Navy Bubblehead  
#2 Posted : Friday, April 9, 2021 10:05:33 AM(UTC)
Navy Bubblehead

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By retiring on Dec 31, you aren't "giving up" anything. You're working at full pay. That time gets added to your pension. Bottom line: it all depends on what you want. Do you want maximum time in retirement? Then go ASAP. Do you want to increase the pension? Go later.

As for cutting too close, you should now your SCD date for retirement purposes. Its in your EOPF if you dont. There should never be any surprises like you described. My SCD for retirement is Dec 10, 1993, with MRA at 57. I already have 25 year in, so if OPM tells me my retirement eligibility date is anything other than my 57th birthday, we have a problem and I will know about well in advance.
thanks 1 user thanked Navy Bubblehead for this useful post.
Michelle on 6/13/2021(UTC)
charliesangel  
#3 Posted : Friday, April 9, 2021 10:57:05 AM(UTC)

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Thanks! I think I'm definitely feeling like wanting as much retirement time as possible and will try to go ASAP.
roger.d  
#4 Posted : Tuesday, April 13, 2021 5:07:17 PM(UTC)
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Originally Posted by: charliesangel Go to Quoted Post
Thanks! I think I'm definitely feeling like wanting as much retirement time as possible and will try to go ASAP.


I believe you are correct. Trying to save a nickel and lose a dollar.

The only thing that might change someone's retirement eligibility would be if they had excessive LWOP. I think.

Edited by user Tuesday, April 13, 2021 7:01:44 PM(UTC)  | Reason: Not specified

Socialist governments traditionally do make a financial mess. They always run out of other people’s money. --Margaret Thatcher
flalaw97  
#5 Posted : Friday, April 16, 2021 6:17:30 PM(UTC)
flalaw97

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You can do the calculations of when you would "break even" by "delaying" your retirement. So use your example of retiring at MRA (mid OCT 2024) vs 31 DEC 2024. First note that you will not get a .5 month of retirement - you won't get any Pension & Supplement until November 1 so the .5 October is not a thing. No matter which day of the month a FERS employee retires, the employee’s retirement becomes effective on the first day of the following month, with the issuance of the first FERS annuity check on the first day of the month thereafter. Also the increase in your years of service (by 2 months) and high 3 (if your salary has gone up at all in the last 3 years) that comes from the additional two months is permanent. So your pension will be just a little bit more if you wait until December. You can do the math to see how many years of receiving this extra it would take to make up for the two months of pension & supplement you passed up. So, the $3200 supplement and 2 months pension recieved for November and December) divided by your monthly increase in pension will equal the number of months it takes to "break even" - after that, every month you will be making more money (difference x # of months you live past break even point). And of course you will have earned two more months of salary in exchange for two less months of "freedom" to do what you want. Good luck!
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