1. Click to edit Master title style Click to edit Master text styles –Second level Third level –Fourth level »Fifth level FERS ANNUITY SOCIAL SECURITY BENEFITS THRIFT SAVINGS PLAN FEDERAL EMPLOYEES RETIREMENT SYSTEM (FERS) A THREE TIERED SYSTEM

2. Click to edit Master title style Click to edit Master text styles –Second level Third level –Fourth level »Fifth level FERS ANNUITY.8%.8% of your salary goes to your FERS Retirement

3. FERS Retirement Calculation Employee Information Employee born: 1-1-1948 Hire date: 1-1-1978 Retirement Date: 1-1-2008 Service: 30 Years Age: 60 years

4. FERS Formula 1% X Annual Salary X Length of Service or 1.1% X Annual Salary X Length of Service (age 62 with 20 years of service) Retirement Age = 60 years Average Salary = $50,000 Length of Service = 30 years Basic Annual Annuity = 1% X $50,000 X 30 = $15,000 or $1,250.00 a Month

5. FERS Benefits Monthly Annually $1,250$15,000FERS Basic Annuity -$125 -$1,500 Survivor Benefit Premium $1,125 $13,500Net FERS Annuity $625 $7,500 Survivor Benefit (Full) -$290-$3,480Health Insurance (BC/BS) -$15 -$150Life Insurance (Basic only) $820 $9,870Total Annuity after reductions (before Taxes)

6. Click to edit Master title style Click to edit Master text styles –Second level Third level –Fourth level »Fifth level FERS ANNUITY.8% $820.00 per month

7. Click to edit Master title style Click to edit Master text styles –Second level Third level –Fourth level »Fifth level SOCIAL SECURITY BENEFITS.8%

8. Social Security Retirement Salary:$50,000 a year for 30 years Meets the 40 quarters for Social Security $985.00 per month

9. Click to edit Master title style Click to edit Master text styles –Second level Third level –Fourth level »Fifth level SOCIAL SECURITY BENEFITS.8% $985.00 per month At age 62 years and 1 month

10. Click to edit Master title style Click to edit Master text styles –Second level Third level –Fourth level »Fifth level THRIFT SAVINGS PLAN.8%

11. TSP Retirement Contributed 5% of salary for 30 years Government 5% matching Total of 10% put into TSP account ((Calculations are based on the “G” Fund rates of return.))

12. TSP Retirement $50,000annual salary x 10%(5%-you & 5%-government) $5,000annual input into TSP x 30years of contributions $150,000TSP Account x 10.8%compounded interest $1,620,000.00TSP for Retirement

13. Age 60 FERS Annuity $15,000.00 TSP Annuity ($4000.00 per month) $48,000.00 Annual Retirement Income $63,000.00

14. Click to edit Master title style Click to edit Master text styles –Second level Third level –Fourth level »Fifth level THRIFT SAVINGS PLAN.8% $4,000.00 per month Draw an annuity for 33 years and 9 months

15. Click to edit Master title style Click to edit Master text styles –Second level Third level –Fourth level »Fifth level $820 $985 $4,000

16. Age 62 years and 1 month FERS Annuity $9,870.00 Social Security $11,820.00 TSP Annuity $48,000.00 Annual Retirement Income $69,690.00 or $5805.00 a month

17. Your Choices for your retirement: FERS Retirement $820.00 Social Security $985.00 $1,805.00 or FERS Retirement $820.00 Social Security $985.00 TSP $4,000.00 $5,805.00 (All supplied figures are estimates of your FERS retirement, Social Security and TSP.)