1. FERSFERS Retirement NALC Branch 79 Retirement NALC Branch 79

3. RETIREMENT RESOURCES, CONT. www.liteblue.usps.govwww.liteblue.usps.gov www.opm.govwww.opm.gov www.tsp.gov/www.tsp.gov/ www.ssa.gov/www.ssa.gov/ 1-877-477-3273 Options1-877-477-3273 Options www.liteblue.usps.govwww.liteblue.usps.gov www.opm.govwww.opm.gov www.tsp.gov/www.tsp.gov/ www.ssa.gov/www.ssa.gov/ 1-877-477-3273 Options1-877-477-3273 Options

4. liteblue.usps.gov

5. opm.gov

6. OVERVIEWOVERVIEW

7. FERS ELIGIBILITY TYPES OF RETIREMENT IMMEDIATEAGE YEARS OF SERVICE (FULL BENEFIT) MRA (55*)30 6020 625 MRA + 10 MRA (55*)10** DISABILITY Any18 Months DEFERRED 625

8. FERS ELIGIBILITY YEAR OF BIRTH MRA MRA BEFORE 1948 551965 56 + 2 MONTHS 1948 55+ 2 MONTHS1966 1949 55 + 4 MONTHS1967 1950 55 + 6 MONTHS1968 1951 55 + 8 MONTHS1969 1952 55 + 10 MONTHS 1970 OR LATER 1953-1964 56

9. FERS ANNUITY COMPUTATIONS  BASIC COMPONENTS OF THE ANNUITY  High 3-years average salary, and  Length of creditable service  Basic Annual Benefit = 1% of High-3 average salary X years of creditable service  BASIC COMPONENTS OF THE ANNUITY  High 3-years average salary, and  Length of creditable service  Basic Annual Benefit = 1% of High-3 average salary X years of creditable service

10. ANNUITY COMPUTATIONS  HIGH-3 average pay is used in computing the employee’s annuity.  The “high-3 average pay” is the largest annual rate resulting from averaging an employee’s rates of basic pay in effect over any period of three consecutive years of credible civilian service, with each rate weighted by the length of time it was in effect.  HIGH-3 average pay is used in computing the employee’s annuity.  The “high-3 average pay” is the largest annual rate resulting from averaging an employee’s rates of basic pay in effect over any period of three consecutive years of credible civilian service, with each rate weighted by the length of time it was in effect.

11. BENEFITSBENEFITS

12. FERS - UNUSED SICK LEAVE FERS employees’ credit toward the annuity computation will be based upon a percentage of the sick leave balance at retirement or death, depending on the date the entitlement to the annuity began:

13. –50 percent in the case of an annuity entitlement based on a separation from service from October 28, 2009, through December 31, 2013; and –100 percent in the case of an annuity entitlement based on a separation from service occurring on or after January 1, 2014. –50 percent in the case of an annuity entitlement based on a separation from service from October 28, 2009, through December 31, 2013; and –100 percent in the case of an annuity entitlement based on a separation from service occurring on or after January 1, 2014. FERS - UNUSED SICK LEAVE, CONTINUED

14. MAXIMUM ANNUITY  FERS RETIREES:  There is no maximum annuity under FERS.  FERS RETIREES:  There is no maximum annuity under FERS.

15. LEAVE WITHOUT PAY  LEAVE WITHOUT PAY (LWOP) is fully creditable for retirement purposes for up to six (6) months per calendar year.

16. FERS - REDUCTIONS IN BASIC ANNUITY  Reduction for Age (MRA + 10)  Annuity is reduced 5% for each year retiree is under age 62; 5/12 percent for each full month under age 62.  Reduction to provide Survivor Benefit  FERS Survivor Reduction = 10% of survivor base  Reduction for Age (MRA + 10)  Annuity is reduced 5% for each year retiree is under age 62; 5/12 percent for each full month under age 62.  Reduction to provide Survivor Benefit  FERS Survivor Reduction = 10% of survivor base

17. SURVIVOR ELECTIONS  Regular Survivor Benefits  Spouse  Former Spouse  Children’s Survivor Benefits  Children who are unmarried and  Under age 18;  Under age 22 if a full-time student  At any age if the child became disabled before age 18  Insurable Interest Survivor Benefits  Spouse  Former Spouse  Insurable Interest Survivor (Financially dependent)  Lump Sum Benefit  Remaining retirement contributions, if any  Regular Survivor Benefits  Spouse  Former Spouse  Children’s Survivor Benefits  Children who are unmarried and  Under age 18;  Under age 22 if a full-time student  At any age if the child became disabled before age 18  Insurable Interest Survivor Benefits  Spouse  Former Spouse  Insurable Interest Survivor (Financially dependent)  Lump Sum Benefit  Remaining retirement contributions, if any

18. ssa.gov

19. SSASSA

20. SSA, cont.

21. MILITARY BUYBACK  Computation of Deposit for Post-56 Military Service  Deposit  FERS - sum equal to 3% of the military basic pay he or she earned during the period of military service.  Interest  2-year interest-free grace period on deposits. After the 2-year period, interest is accrued and compounded annually - on your anniversary for FERS.  Computation of Deposit for Post-56 Military Service  Deposit  FERS - sum equal to 3% of the military basic pay he or she earned during the period of military service.  Interest  2-year interest-free grace period on deposits. After the 2-year period, interest is accrued and compounded annually - on your anniversary for FERS.

22. MILITARY BUYBACK  Computation of Deposit for Post-56 Military Service Cont.  Where to Make Deposits  Deposits for post-56 military service must be made to the employing office prior to retirement.  Deposits cannot be be made to OPM.  Computation of Deposit for Post-56 Military Service Cont.  Where to Make Deposits  Deposits for post-56 military service must be made to the employing office prior to retirement.  Deposits cannot be be made to OPM.

24. HEALTH INSURANCE  A retiring employee is eligible to continue FEHB coverage into retirement if he/she:  Retires on immediate annuity, and  Is insured on date of retirement, and  Was covered by FEHB under his/her own enrollment or as a family member under another Federal enrollment, for five (5) years of service immediately preceding retirement or since his/her first opportunity to enroll.  A retiring employee is eligible to continue FEHB coverage into retirement if he/she:  Retires on immediate annuity, and  Is insured on date of retirement, and  Was covered by FEHB under his/her own enrollment or as a family member under another Federal enrollment, for five (5) years of service immediately preceding retirement or since his/her first opportunity to enroll.

25. CONTINUATION OF HEALTH INSURANCE  Cost  Retirees are required to pay the same premiums for FEHB as are employees. Premiums are withheld on a monthly basis.  Changes after Retirement - generally annuitants are not permitted to enroll in FEHB after retirement.  Survivor eligibility for Continuation of Health Insurance  Survivor benefit must be elected for the spouse to be eligible for Health Insurance.  Cost  Retirees are required to pay the same premiums for FEHB as are employees. Premiums are withheld on a monthly basis.  Changes after Retirement - generally annuitants are not permitted to enroll in FEHB after retirement.  Survivor eligibility for Continuation of Health Insurance  Survivor benefit must be elected for the spouse to be eligible for Health Insurance.

26. LIFE INSURANCE  A retiring employee is eligible to continue FEGLI coverage into retirement if he/she:  Retires on immediate annuity, and  Is insured on date of retirement, and  Was covered by FEGLI under his/her own enrollment or as a family member under another Federal enrollment, for five (5) years of service immediately preceding retirement or since his/her first opportunity to enroll.  Does not convert to a private policy.  A retiring employee is eligible to continue FEGLI coverage into retirement if he/she:  Retires on immediate annuity, and  Is insured on date of retirement, and  Was covered by FEGLI under his/her own enrollment or as a family member under another Federal enrollment, for five (5) years of service immediately preceding retirement or since his/her first opportunity to enroll.  Does not convert to a private policy.

27. INSURANCE OPTIONS  Basic - Basic insurance amount (BIA) annual rate of basic pay rounded to next even $1,000 plus $2,000.  75% Reduction - 2% per month reduction beginning 2nd month after age 65 down to 25%  50% Reduction - same as 75% except reduces down to 50%  No reduction  Basic - Basic insurance amount (BIA) annual rate of basic pay rounded to next even $1,000 plus $2,000.  75% Reduction - 2% per month reduction beginning 2nd month after age 65 down to 25%  50% Reduction - same as 75% except reduces down to 50%  No reduction

28. OPTIONAL INSURANCE IN RETIREMENT  Standard - will reduce 2% each month until down to 25% starting 2nd month after 65th birthday  Additional  Full reduction - starts 2nd month after age 65 for 50 months  No reduction - pay full premiums  Family  Full reduction - starts 2nd month after age 65 for 50 months  No reduction - pay full premium  Standard - will reduce 2% each month until down to 25% starting 2nd month after 65th birthday  Additional  Full reduction - starts 2nd month after age 65 for 50 months  No reduction - pay full premiums  Family  Full reduction - starts 2nd month after age 65 for 50 months  No reduction - pay full premium

29. tsp.gov

30. THRIFT SAVINGS PLAN  Employees who have participated in the Thrift Savings Plan during employment may elect one of the following payment options upon retirement:  Lump Sum - The retiree may elect to receive all monies in the fund in one lump sum payment.  Single Life Annuity - The retiree may elect to receive equal monthly payment for life.  Single Life Annuity Increasing Payment - The retiree may elect to receive monthly payments which increase at a set rate yearly.  Joint & Surviving Spouse Annuity Level Payment - The retiree may elect to receive equal monthly payment for life plus a monthly benefit payable to the surviving spouse in the event of the retiree’s death.  Employees who have participated in the Thrift Savings Plan during employment may elect one of the following payment options upon retirement:  Lump Sum - The retiree may elect to receive all monies in the fund in one lump sum payment.  Single Life Annuity - The retiree may elect to receive equal monthly payment for life.  Single Life Annuity Increasing Payment - The retiree may elect to receive monthly payments which increase at a set rate yearly.  Joint & Surviving Spouse Annuity Level Payment - The retiree may elect to receive equal monthly payment for life plus a monthly benefit payable to the surviving spouse in the event of the retiree’s death.

31. THRIFT SAVINGS PLAN  Joint & Surviving Spouse Annuity Increasing Payment - The retiree may elect to receive monthly payments which increase at a set rate yearly plus a monthly benefit payable to the surviving spouse in the event of the retiree’s death.  Joint & Other Survivor Annuity Level Payment - The retiree may elect to receive equal monthly payment for life plus a monthly benefit payable to a person with an insurable interest or to a former spouse.  Equal Installments - The retiree may elect to receive the total of his/her account in equal installments over a set period of time.  Transfer to IRA or Other Qualified Pension Plan.  Defer receipt of benefits until a later date. The retiree must begin to receive payments by April 1st after reaching age 70 1/2.  Joint & Surviving Spouse Annuity Increasing Payment - The retiree may elect to receive monthly payments which increase at a set rate yearly plus a monthly benefit payable to the surviving spouse in the event of the retiree’s death.  Joint & Other Survivor Annuity Level Payment - The retiree may elect to receive equal monthly payment for life plus a monthly benefit payable to a person with an insurable interest or to a former spouse.  Equal Installments - The retiree may elect to receive the total of his/her account in equal installments over a set period of time.  Transfer to IRA or Other Qualified Pension Plan.  Defer receipt of benefits until a later date. The retiree must begin to receive payments by April 1st after reaching age 70 1/2.

32. TSP OPTIONS  Leave money in TSP (Until 70 1/2)  Partial withdrawal - single payment - leave remainder using other 3 withdrawal options  Full withdrawals  Receive entire account in single payment  Receive entire account in series of monthly payments  Purchase a life annuity  Leave money in TSP (Until 70 1/2)  Partial withdrawal - single payment - leave remainder using other 3 withdrawal options  Full withdrawals  Receive entire account in single payment  Receive entire account in series of monthly payments  Purchase a life annuity

33. THRIFT SAVINGS PLAN  Visit the Thrift Savings website - this provides current information.  www.tsp.gov www.tsp.gov  For Calculators Menu  www.tsp.gov/calc/index.html www.tsp.gov/calc/index.html  Projecting Account Balances - this calculator allows you to estimate the growth of your TSP account.  Annuity Calculator - This calculator allows you to estimate what your account balance would provide in monthly annuity payments under a variety of TSP account options.  Retirement planning - This page links you to the Ballpark Estimate calculator, which allows you to estimate how much you will need to save each year to meet your retirement goals.  Visit the Thrift Savings website - this provides current information.  www.tsp.gov www.tsp.gov  For Calculators Menu  www.tsp.gov/calc/index.html www.tsp.gov/calc/index.html  Projecting Account Balances - this calculator allows you to estimate the growth of your TSP account.  Annuity Calculator - This calculator allows you to estimate what your account balance would provide in monthly annuity payments under a variety of TSP account options.  Retirement planning - This page links you to the Ballpark Estimate calculator, which allows you to estimate how much you will need to save each year to meet your retirement goals.

34. FERS ANNUITY COMMENCING DATES  Optional retirements commence on the first of the month following the month of separation.  You should plan your retirement for the last day of the month, or the last few days of a month, to avoid a gap in pay.  Optional retirements commence on the first of the month following the month of separation.  You should plan your retirement for the last day of the month, or the last few days of a month, to avoid a gap in pay.

35. TAX INFORMATION  Federal Income Tax will be withheld from your annuity at the rate for a Married Person with three (3) exemptions.  If you want something different, a W-4P Form is required.  State Income Tax - must be requested by the Employee - OPM will only take out deductions in dollar amounts.  Federal Income Tax will be withheld from your annuity at the rate for a Married Person with three (3) exemptions.  If you want something different, a W-4P Form is required.  State Income Tax - must be requested by the Employee - OPM will only take out deductions in dollar amounts.

36. TAX INFORMATION  Most of your benefits are taxable.  If your annuity starting date is after 11/18/96, you must use the Simplified Method to figure the taxable and tax-free parts.  Check out information provided on the following website:  http://www.opm.gov/retire/html/library/fers. asp  Use the calculator on “Tools” page to compute the tax- free portion of your annuity payment.  http://apps.opm.gov/tax_calc/index.cfm  Most of your benefits are taxable.  If your annuity starting date is after 11/18/96, you must use the Simplified Method to figure the taxable and tax-free parts.  Check out information provided on the following website:  http://www.opm.gov/retire/html/library/fers. asp  Use the calculator on “Tools” page to compute the tax- free portion of your annuity payment.  http://apps.opm.gov/tax_calc/index.cfm

37. DIRECT DEPOSIT  DIRECT DEPOSIT  You may have Direct Deposit as an Annuitant. SF 1199-A, Direct Deposit Sign-up Form, is available from your bank.  DIRECT DEPOSIT  You may have Direct Deposit as an Annuitant. SF 1199-A, Direct Deposit Sign-up Form, is available from your bank.

38. DEDUCTIONSDEDUCTIONS  AUTOMATIC DEDUCTIONS  Health Insurance Premiums  Life Insurance Premiums  OTHER DEDUCTIONS  Allotments, Direct Deposits, Union Dues, etc.  Will stop at time of Retirement  AUTOMATIC DEDUCTIONS  Health Insurance Premiums  Life Insurance Premiums  OTHER DEDUCTIONS  Allotments, Direct Deposits, Union Dues, etc.  Will stop at time of Retirement

39. PREPARING FOR RETIREMENT  Review your own records - Official Personnel Folder (OPF).  Verify that you have paid Military Buyback if applicable and DD 214 is in your OPF.  Verify if deposit or re-deposit is required for any service.  Review your survivor benefit options.  Verify that you are eligible to continue Health and Life Insurance coverage as a retiree.  Review your own records - Official Personnel Folder (OPF).  Verify that you have paid Military Buyback if applicable and DD 214 is in your OPF.  Verify if deposit or re-deposit is required for any service.  Review your survivor benefit options.  Verify that you are eligible to continue Health and Life Insurance coverage as a retiree.

40. PREPARING FOR RETIREMENT  Check any designations of beneficiaries you may have on file to be sure that they reflect on your current needs.  Ask your Personnel Office for an annuity estimate.  Contact Social Security to see if you are eligible for Social Security benefits - Request for Earnings and Benefit Statement to get a record of your earnings under Social Security and, if you will be eligible, an estimate of payment you may receive.  Contact your Personnel Office three months prior to your retirement date.  Check any designations of beneficiaries you may have on file to be sure that they reflect on your current needs.  Ask your Personnel Office for an annuity estimate.  Contact Social Security to see if you are eligible for Social Security benefits - Request for Earnings and Benefit Statement to get a record of your earnings under Social Security and, if you will be eligible, an estimate of payment you may receive.  Contact your Personnel Office three months prior to your retirement date.

41. QUESTIONSQUESTIONS  When will I get my first payment?  As soon as OPM receives the retirement records, they provide “interim” payments.  How much will my interim payments be?  Generally, interim payments average more than 80 percent of your final benefit.  When will I get my first payment?  As soon as OPM receives the retirement records, they provide “interim” payments.  How much will my interim payments be?  Generally, interim payments average more than 80 percent of your final benefit.

42. QUESTIONSQUESTIONS  What kind of things are withheld from my interim pay?  OPM only withholds Federal Income Tax. Health and Life Insurance coverage will continue. OPM makes necessary withholding for Federal taxes and health and life insurance premiums from the benefits sent when they are finished processing your application.  What kind of things are withheld from my interim pay?  OPM only withholds Federal Income Tax. Health and Life Insurance coverage will continue. OPM makes necessary withholding for Federal taxes and health and life insurance premiums from the benefits sent when they are finished processing your application.

43. QUESTIONSQUESTIONS  What information will I get about my benefits when OPM finishes processing my application?  OPM will send you a personalized statement entitled “Your Federal Retirement Benefits”. It details, among other things, how much your monthly payment will be. It also confirms such things as health and life insurance coverage, and provides information you will need to prepare your tax returns.  What information will I get about my benefits when OPM finishes processing my application?  OPM will send you a personalized statement entitled “Your Federal Retirement Benefits”. It details, among other things, how much your monthly payment will be. It also confirms such things as health and life insurance coverage, and provides information you will need to prepare your tax returns.

44. QUESTIONSQUESTIONS  May I change my health insurance coverage?  Yes. After you retire, you will still have the opportunity to change your enrollment from one plan to another during an annual open season. You cannot change to another plan simply because you retired.  May I change my life insurance coverage?  You may cancel or decrease your coverage at any time. You cannot increase your coverage.  May I change my health insurance coverage?  Yes. After you retire, you will still have the opportunity to change your enrollment from one plan to another during an annual open season. You cannot change to another plan simply because you retired.  May I change my life insurance coverage?  You may cancel or decrease your coverage at any time. You cannot increase your coverage.

45. QUESTIONSQUESTIONS  What about Cost of Living Increases?  The first cost of living increase is prorated based on how long you were retired before it is given. At that time, OPM will send you a notice explaining the increase.  About 1-2%.  What about Cost of Living Increases?  The first cost of living increase is prorated based on how long you were retired before it is given. At that time, OPM will send you a notice explaining the increase.  About 1-2%.

46. RETIREMENT RESOURCES  NALC Retirement Manual  Available at each branch office  Questions & Answers on FERS  www.nalcbranch908.com/fers.pdf  Survivors Guide to CSRS, FERS, & Social Security, and Preparing for Retirement  Leaflets at the branch office, or  http://www.nalc.org/depart/retire/nalcpubs.html  NALC Br. 79 (206) 284-3420  Web Sites  http://www.nalc79.org/Retired.html  http://www.nalc.org/depart/retire/index.html  NALC Retirement Manual  Available at each branch office  Questions & Answers on FERS  www.nalcbranch908.com/fers.pdf  Survivors Guide to CSRS, FERS, & Social Security, and Preparing for Retirement  Leaflets at the branch office, or  http://www.nalc.org/depart/retire/nalcpubs.html  NALC Br. 79 (206) 284-3420  Web Sites  http://www.nalc79.org/Retired.html  http://www.nalc.org/depart/retire/index.html