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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]This is very helpful.  Can one of the experts give me their thoughts on this scenario?

My DW is a GS 15 10, making $163,000 per year.  She's been a federal employee (attorney) for 18.5 years.

She's thinking of switching to the private sector in a few years.  She likes working and so plans to work until 65 or later.

Should she wait until after she has 20 years of federal employment to make the switch to the private sector, since she's only 1.5 years away?

And if she doesn't feel strongly about making the switch to the private sector, what about just staying in the current job, which she likes well enough?  Thank you.[/quote]

The salary tables do not indicate that GS 15-10 is paid 163k.  Regardless of that, leaving before getting 20 years in would be monumentally stupid.[/quote]

Why? What happens with 20 year’s service if you are leaving well before retirement age anyway? Isn’t it just a straight calculation based on number of years?[/quote]

After 20 years, your pension under FERS is calculated as 1.1% for each year of service rather than 1.0%
[/quote]

Ok, so if I calculated correctly, that's a difference of $4,920 per year?  (If the high-3 salary is $164,000, I calculate the pension after 19 years as a federal employee at $31,160 (versus the pension after 20 years as a federal employee as $36,080).)  Do I have that right?  If so, it's not a huge difference is one could get a better salary in the private sector (by leaving a the 19th year instead of the 20th year.)  Or maybe she should stay if the health insurance benefits in retirement are so great? (Can someone explain what they are?)[/quote]

To get the health insurance benefits she would have to be  eligible for retirement (minimum retirement age) at the time she separates and currently be subscribing to the federal health insurance (and have done so for 5 years over the course of her employment).  It all can be postponed until she actually execute the retiremeent.

My understanding is that the health insurance is quite valuable.  You pay the same rates as employees.  You also need to register for medicare and your FEHB benefits work in tandem with medicare.  Some plans provide a lot of benefits such as complete elimination of co-pays and various credits because of how the systems work together.  Its complicated and I plan to go to a seminar to understand.

I am almost 54 and my MRA age is 56.  At this point, it would be very costly for me to leave before I hit MRA.  I currently have 22 years in.  [/quote]

[b]Forgive my ignorance as I am in my mid-40's, but once you qualify for Medicare at age 65, what type of health insurance do you need?  At the risk of sounding like an idiot, does Medicare not cover most things that normal health insurance would cover?[/b][/quote]

Thanks for asking this. I've always wanted to know...[/quote]

It is frankly impossible to get a straight answer.

Medicare Part A (hospital care) is free and is primary on hospital expenses
Medicare Part B costs (134-428/month depending on income) covers medical expenses, but there is a deductible and they don't pay all
Medicare Part C (Medicare Advantage) is, I think, basically like a health care company providing coordinating your coverage in addition to what Parts A and B provide.  This may include prescription coverage.
Madicare Part D is a stand alone prescription coverage.

My guess is with the federal retirement FEHB you take Part A and B and then FEHB is secondary insurance but is similar to the Medicare Advantage in that it covers more and provides your prescription coverage.  Several of the providers set themselves up to be appealing to retirees and they basically cover all copays. and give some credits for medical expenses  My guess is when we retire DH and I will be in the second highest income category for payments so if today we would pay:  $700 in medicare premiums and $430 in FEHB premiums (BCBS basic family).  Non of that is pre-tax.[/quote]

It is impossible to get a straight answer on this.  I once spent hours looking for it.  Best I could tell, you need to take Part A (which is mandatory and free), but if you're high income, Part B is expensive, and not worth it if you have a good FEHB plan.  I think the Feds don't give a straight answer because they don't want to discourage retirees from getting Part B, even if it isn't really in their financial interest, because it lessens the expense on the FEHB plans.  [/quote]

One thing PArt B covers that (i believe) most FEHB plans do not is durable medical equipment (wheelchairs, walkers, etc.) and maybe hearing aids?[/quote]

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