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Retirement Planning

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#1 Posted : Wednesday, July 7, 2021 6:20:21 AM(UTC)

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I have been a federal employee since 2009. Shame on me for not checking my E&L statements more thoroughly but I recently used a withholdings calculator to figure out how a change to my TSP contributions will affect my Net pay. Upon going through my withholdings I noticed that I am paying in 4.4% of my salary to FERS. I was under the impression that anyone hired prior to 2013 should only be contributing .8% for FERS? Has this changed recently? Looking on commerce.gov it seems like I should only be paying the .8%. For disclosure, I have changed agencies once since entering federal service but did not have a break in service at all. I have had a few promotions so I'm wondering if my FERS contributions were incorrectly processed somewhere along the line between the change in agencies or the change in positions.

Edit: I have never had a break in service but I have been on extended military leave without pay twice as a reservist and I'm also 6C covered as Federal Law Enforcement so I'm not sure if that comes into play as far as calculating FERS contributions.

Thanks in advance for your help figuring this out.

Edited by user Wednesday, July 7, 2021 6:33:14 AM(UTC)  | Reason: Not specified

#2 Posted : Wednesday, July 7, 2021 1:04:14 PM(UTC)

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If you worked in federal civilian service, and left before getting 5 years, and came back on or after January 1, 2O13, you might be properly coded as FERS-RAE (3.1%)(KR) or FERS-FRAE (4.4%)(KF) instead of FERS (O.8%)(K).

Have you been 6c employee the whole time? I understand their rates are 1.3% for FERS (M), 3.6% for FERS-RAE (MR), and 4.9% for FERS-FRAE (MF).

So, your 4.4% looks like FERS-FRAE (KF).

Maybe your service back in 2OO9 wasn't permanent full-time? Maybe it wasn't "creditable" service? Maybe your extended military leave was treated as a break in service? Maybe your return from military leave was treated as a new appointment? Maybe you're not 6c?

You should talk to your HR staff. Best wishes.

Edited by user Wednesday, July 7, 2021 1:10:33 PM(UTC)  | Reason: Not specified

#3 Posted : Friday, July 9, 2021 2:44:44 PM(UTC)

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Looks as tho you were incorrectly coded somewhere along the way. Since you were employed continuously from 2009, without break in service, you should be contributing at the .8% rate. I hope you have retained hard copies of all your paperwork, because you're going to need them to get your HR to correct the problem.
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