Reply to Is it accurate to think of FERS as delayed Como?

Forum Index » Money and Finances

Reply to "Is it accurate to think of FERS as delayed Como?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Today I did the math and realized that although I am underpaid in my fed job, if I stay until five years, the pension at that point (if I claim at 62 and live to 80) will be equivalent to having been paid an additional 21K during those 5 years of working.

If I stay for a total of 11 years, and live to 80, it will be equivalent to having been paid an additional $50K for those 11 years. This is assuming no step increases and a 2% annual base increase.

Is there a cap on how much of base can count towards pension?

If this is correct it changes my “make me move” number.[/quote]

Your general reasoning is sound.  In your situation, I would stay Fed at least the number of years required to qualify for the pension. If already a long-term Fed, then stay long enough (is it 20 years minimum ?) to qualify for the higher percentage pension payout rate.

Also, consider the health insurance benefits before leaving.  Feds with health insurance can keep it after retirement, and do not need to sign up for Medicare until they retire from Federal service.  Private industry does not work the same way.

Strongly suggest you ask HR when their next Retirement Seminar will happen, and be sure to attend that.  At least with Navy, those seminars are heavily beneficial even well before retirement.  In fact, we encourage all our new hires to attend them so they can maximize their FERS payouts. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics