Leaving the fed--any advantage to completing ten years first?

[Anonymous]

Hi all. My husband and I will have to relocate far from DC soon for his job. When his job is scheduled to start, I will have finished 9 years and 6 months of federal service.

I was wondering if there would be any benefit (as far as retirement, etc.) to my sticking it out another couple of months in DC and finishing out 10 years. (I also have maybe a month of annual leave stored up.)

We have two small children, so living apart for a few months would be difficult but not impossible.

Thanks in advance.

[Anonymous]

Well, your FERS pension is 1% per year times high-3. So, I assume yours will be calculated at 9% and not 10% (unless sick plus annual leave is enough to get you the 10 years). But honestly, 1% of your salary starting when your 62 probably wouldn't be enough for me to make serious life decisions. At the high end (assuming you've been a GS-15 for several years), it's maybe an additional ~$1,500 per year, starting when you're 62.

Other than that, I don't think anything magically changes when you hit 10 years service.

[Anonymous]

Can you convert to telecommute?

[Anonymous]

Your title says "the fed," which I think normally means the Federal Reserve, which does have a separate defined benefit plan that has vesting requirements. Or are you asking about plain old FERS for most federal employees that PPs have already answered?

[Anonymous]

Anonymous wrote:Your title says "the fed," which I think normally means the Federal Reserve, which does have a separate defined benefit plan that has vesting requirements. Or are you asking about plain old FERS for most federal employees that PPs have already answered?

True, but then the OP said: "When his job is scheduled to start, I will have finished 9 years and 6 months of federal service."

[Anonymous]

Hi OP. Read the section here on deferred annuities: https://www.opm.gov/retirement-services/fers-information/eligibility/

[Anonymous]

Anonymous wrote:Well, your FERS pension is 1% per year times high-3. So, I assume yours will be calculated at 9% and not 10% (unless sick plus annual leave is enough to get you the 10 years). But honestly, 1% of your salary starting when your 62 probably wouldn't be enough for me to make serious life decisions. At the high end (assuming you've been a GS-15 for several years), it's maybe an additional ~$1,500 per year, starting when you're 62.

Other than that, I don't think anything magically changes when you hit 10 years service.

Wouldn't it be 9% per year pension for 9 years of service. So maybe $10,000ish per year retirement at 62?

[Anonymous]

Anonymous wrote:Can you convert to telecommute?

OP here. Maybe! One previous employee was allowed to--but another who had not been at my Agency as long was declined. I think management doesn't like to make a general practice of it, though. I will try when the time comes closer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Your title says "the fed," which I think normally means the Federal Reserve, which does have a separate defined benefit plan that has vesting requirements. Or are you asking about plain old FERS for most federal employees that PPs have already answered?

True, but then the OP said: "When his job is scheduled to start, I will have finished 9 years and 6 months of federal service."

OP here. Sorry, I indeed meant "federal service," not the Federal Reserve.

[Anonymous]

Anonymous wrote:Well, your FERS pension is 1% per year times high-3. So, I assume yours will be calculated at 9% and not 10% (unless sick plus annual leave is enough to get you the 10 years). But honestly, 1% of your salary starting when your 62 probably wouldn't be enough for me to make serious life decisions. At the high end (assuming you've been a GS-15 for several years), it's maybe an additional ~$1,500 per year, starting when you're 62.

Other than that, I don't think anything magically changes when you hit 10 years service.

That is what I thought. Thanks for the response. I was wondering if there was anything special about ten years that I'd missed, but it doesn't sound like it.

I guess I will just miss out on getting my ten year pin!

[Anonymous]

If you are close (or close-ish) to retirement then you can decide to actually retire, and keep your health benefits.

[Anonymous]

Anonymous wrote:Hi OP. Read the section here on deferred annuities: https://www.opm.gov/retirement-services/fers-information/eligibility/

OP again. Ah--after reading this, I am confused, and I wonder if there *is* something slightly different about ten years of service.

If I understand correctly, with ten years of service, you can begin receiving your pension at the "Minimum Retirement Age" of 57. Otherwise, you wait until 62.

[Anonymous]

Anonymous wrote:Well, your FERS pension is 1% per year times high-3. So, I assume yours will be calculated at 9% and not 10% (unless sick plus annual leave is enough to get you the 10 years). But honestly, 1% of your salary starting when your 62 probably wouldn't be enough for me to make serious life decisions. At the high end (assuming you've been a GS-15 for several years), it's maybe an additional ~$1,500 per year, starting when you're 62.

Other than that, I don't think anything magically changes when you hit 10 years service.

FERS counts parts of years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Hi OP. Read the section here on deferred annuities: https://www.opm.gov/retirement-services/fers-information/eligibility/

OP again. Ah--after reading this, I am confused, and I wonder if there *is* something slightly different about ten years of service.

If I understand correctly, with ten years of service, you can begin receiving your pension at the "Minimum Retirement Age" of 57. Otherwise, you wait until 62.

Yes, you could get your pension at the MRA with 10 years of service but it will be reduced unless you wait until 62. If you make it to 20 years, you could begin collecting at age 60 without being penalized.

[Anonymous]

Under FERS, your spouse acquires survivor's rights to your pension after ten years of service. OP, depending on what your pension will be worth at age 62, you may want to stay those extra few months.