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Retirement Planning


Whether you are close to federal employee retirement or just starting out in your career, this is the place to share ideas with your federal colleagues on creating a secure financial foundation.


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fedupfedup  
#1 Posted : Tuesday, January 31, 2017 3:47:33 PM(UTC)

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I'm due to retire in 1 to 3 years, during my career I took out the money thabefire I left some federal jobs that was for my CSRS pension. I have an option to redeposit it. It's about 5,000 w interest. It would increase my retirement to 400.00 a year. Is it worth it to redeposit it so I can have a little larger retirement check? Thank you
postalvet  
#2 Posted : Tuesday, January 31, 2017 6:24:40 PM(UTC)
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Originally Posted by: fedupfedup Go to Quoted Post
I'm due to retire in 1 to 3 years, during my career I took out the money thabefire I left some federal jobs that was for my CSRS pension. I have an option to redeposit it. It's about 5,000 w interest. It would increase my retirement to 400.00 a year. Is it worth it to redeposit it so I can have a little larger retirement check? Thank you


imo 33 dollars a month is not worth it.

one could sell recyclables to get that much.

use the 5k to take a vacation.
Postal employee (retired) 38 yrs who helps even if some do not believe me! I was a Steward, officer & trouble maker. Just Sayin'
frankgonzalez  
#3 Posted : Wednesday, February 01, 2017 4:04:52 AM(UTC)

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Originally Posted by: fedupfedup Go to Quoted Post
I'm due to retire in 1 to 3 years, during my career I took out the money thabefire I left some federal jobs that was for my CSRS pension. I have an option to redeposit it. It's about 5,000 w interest. It would increase my retirement to 400.00 a year. Is it worth it to redeposit it so I can have a little larger retirement check? Thank you
It would take 12.5 years recoup the deposit. And that is based on the presumption you meant increase your retirement BY $400 a year (vs increasing it TO $400 a year...as that is barely worth collecting!). Throw it on a CD, into your TSP or other investment...or just spend it on something you want. $5k is a large outlay for a small return.

You should have voted Cthulu...the greatest of all Evils
SDAnalyst  
#4 Posted : Thursday, February 02, 2017 4:50:39 PM(UTC)
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Originally Posted by: fedupfedup Go to Quoted Post
I'm due to retire in 1 to 3 years, during my career I took out the money thabefire I left some federal jobs that was for my CSRS pension. I have an option to redeposit it. It's about 5,000 w interest. It would increase my retirement to 400.00 a year. Is it worth it to redeposit it so I can have a little larger retirement check? Thank you

Is this Redeposit for service before or after 3/1/1991? If it was prior to that date, you can take the "Actuarial Reduction" to have the service count instead of making a Redeposit. There's a table (Present Value Factors) that tells you how much you would lose per month. I believe it would be less than $50 per month, since you owe only $5,000. I wouldn't repay it, if you are in that situation.

On the other hand, if the Redeposit is for service after 3/1/1991, you must pay the Redeposit in order to have that time counted for retirement. If you don't, that period of time will not be used when computing your Annuity.
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