1. Understanding Your Federal Benefits
Cindy Lundquist 1

2. Annuity Health Insurance Life Insurance What will we discuss?
Eligibility
Calculation
Survivor election
Disability
Health Insurance
Coverage
Cost
Life Insurance
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3. Qualifying for Retirement
Minimum requirements:
FERS or CSRS
Five (5) years of civilian service
CSRS Only
Subject to retirement system 1 of 2 years before retirement
FERS or CSRS
Meet age and length of service requirements
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4. Age and Service Requirements
Type of Retirement
FERS or
CSRS
Age
Years of
Service
Voluntary Unreduced
Both 62 5 60 20 55 30
FERS *
*Age for FERS optional retirement is based on date of birth. See next slide.

5. Age and Service Requirements – FERS
Year of Birth
Age
Years of Service
Born before 1948 55 30
1948
months
1949
months
1950
months
1951
months
1952
months 56
1965
months
1966
months
1967
months
1968
months
1969
months
1970 and later 57
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6. Age and Service Requirements
Type of Retirement
FERS or
CSRS
Age
Years of
Service
Involuntary (RIF or Early Out)
Both 50 20
Any Age 25
Deferred 62 5
FERS 60
MRA 30
10*
*Reduced by 5% for each year you are under 62.
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7. Reduced Retirement – FERS
“Minimum Retirement Age + 10” Provision
Special provision for FERS only
MUST
Attain minimum retirement age (MRA)
Have 10 years of creditable service
Reduction
5% for each year under age 62
Permanent reduction
Not eligible for supplement
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8. FERS – What is my MRA? Year of Birth Age Years of Service
Born before 1948 55 30
1948
months
1949
months
1950
months
1951
months
1952
months 56
1965
months
1966
months
1967
months
1968
months
1969
months
1970 and later 57
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9. Annuity Computation
Page  9

10. Annuity Computation Two basic factors Average high-3 salary
Total length of service
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11. FERS Transferees
Two Components
CSRS
FERS
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12. FERS/CSRS Annuity CSRS component FERS component
Service which CSRS deducted
Military service before transferred to FERS
Unused sick leave at time of transfer
FERS component
Service which FERS deducted
Military service after transferred to FERS
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13. Creditable Service
Following used for eligibility and calculation of annuity
Time from date of hire to separation
LWOP—up to 6 months in calendar year
OWCP
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14. Creditable Service Part-time Fully creditable for eligibility but
Prorated for computation
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15. Deposit Service
Period(s) of service with no retirement deductions (example: temporary service)
Amount of deposit due
Equal to amount that should have been withheld
plus
Interest
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16. Credit for Eligibility Credit for Calculation
FERS Deposit Service
Non-deduction service before :
Credit for Eligibility
Credit for Calculation
Deposit Made
Deposit Not Made
Non-deduction service or later, no credit for eligibility or calculation.
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17. CSRS Deposit Service Non-deduction service before 10-1-1982:
Credit for Eligibility
Credit for Calculation
Deposit Made
Deposit Not Made
Note: If deposit not made, annuity reduced by 10% of deposit due
Non-deduction service or later:
Credit for Eligibility
Credit for Calculation
Deposit Made
Deposit Not Made
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18. Military Deposit Active duty military service Deposit amount
FERS – 3% of base pay plus interest
CSRS – 7% of base pay plus interest
Cannot use if receiving military retirement unless:
Military retirement waived at time of retirement from federal service
Military retirement based on combat-connected disability or service in the reserves
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19. Credit for Eligibility Credit for Calculation
FERS Military Service
Credit for Eligibility
Credit for Calculation
Deposit Made
Deposit Not Made
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20. CSRS Military Service Hired before 10-1-1982:
Credit for Eligibility
Credit for Calculation
Deposit Made
Deposit Not Made*
*Note: Annuity reduced at age 62 if eligible for Social Security
Hired or later:
Credit for Eligibility
Credit for Calculation
Deposit Made
Deposit Not Made
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21. FERS Redeposit If— FERS funds withdrawn at termination
Subsequently re-employed
Then—
Previous employment only used for eligibility if earlier contribution plus interest are not paid
Previous employment used for both eligibility and computation if contributions plus interest are paid
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22. CSRS Redeposit Refunded contribution
Time used for eligibility regardless if redeposit made
If refund not made—
Separated before ,
actuarial reduction imposed
Separated after ,
time not used in computation
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23. Interest Rates Through 12-31-1984 – 3%, thereafter: 1985 13.0% 1996
6.875%
2007
4.875%
1986
11.125%
1997
2008
4.75%
1987
9.0%
1998
6.75%
2009
3.875%
1988
8.375%
1999
6. 75%
2010
3.175%
1989
9.125%
2000
5.875%
2011
2.75%
1990
8.75%
2001
6.375%
2012
2.25%
1991
8.625%
2002
5.5%
2013
1.625%
1992
8.125%
2003
5.0%
2014
1993
7.125%
2004
2015
2.0%
1994
6.25%
2005
4.375%
2016
1995
7.0%
2006
4.125%
2017
1.875%
2018
2.125%
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24. Total Length of Service
Example: Civilian Service 27 yrs 6 mos 7 days Military Service 3 yrs 9 mos 10 days Total 31 yrs 3 mos 17 days Plus unused sick leave (1061 hrs) 6 mos 3 days Total 31 yrs 9 mos 20 days
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25. FERS General Formula 1% x years of service x High-3, or
1.1% x years of service x High-3 if retiring at age 62 with 20+ years of service
Examples: MRA with 30 years of service = 30% x High-3
Age 62 with 30 years of service = 33% x High-3
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26. CSRS General Formula 1.5% x 5 years + 1.75% x 5 years
+ 2.0% x remaining years of service
Retirement factor
X High-3 Average Salary
Annual Annuity
Note: Maximum annuity = 80% of high-3 at 41 years 11 months of service.
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27. CSRS General Formula
Example: Age 55 with 30 years of service 1.5% x 5 years = 7.50% % x 5 years = 8.75% + 2.0% x 20 years = 40.00% Retirement factor = 56.25% X High-3 Average Salary Annual Annuity
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28. CSRS Offset Annuity Who is “CSRS Offset employee?”
Rehired after with more than 1 year break in service
Had 5 years of CSRS service before separation
Did not transfer to FERS
Annuity computed same as CSRS annuitant
At age 62, annuity reduced for Social Security
If not eligible for Social Security, no reduction
Reduction at 62 regardless if you apply for Social Security
Reduction less than Social Security check
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29. FERS Annuity Supplement
Paid by: OPM not Social Security Paid at: MRA with 30 years of service, or age 60 with 20 years, or early out, or discontinued service Paid until: Age 62 Based on: Estimated full career Social Security benefit x years of FERS service divided by 40 Subject to: Social Security earnings limit Not payable: If retirement based on MRA+10, disability, or deferred retirement
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30. Electing Survivor Benefits
Election made at time of retirement
If less than maximum elected—
Signed and notarized statement from spouse
Cannot change election
Exception—no survivor elected can change within 18 months of retirement
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31. FERS Survivor Election
Amount
50% of basic annuity, or
25% of basic annuity
Reduction of annuity
10% if maximum elected
5% if 25% of basic annuity elected
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32. CSRS Survivor Election
Amount
55% of full annuity
55% of any portion of basic annuity
Reduction
2-1/2% of the first $3,600 of annuity
plus
10% of amount over $3,600
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33. Example of CSRS Election
CSRS annuity = $35,000
Elect maximum survivor election
$35,000 x 55% = $19,250 annually
Or $1,604 monthly to surviving spouse
Annuity reduction
$3,600 x 2.5% = $90
$35,000 - $3,600=$31,400 x 10% = $3,140
Total annual reduction = $3,230 (or $ per month)
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34. Survivor Benefits for Children
FERS
Same amount payable for CSRS children
Less any amount payable to children by Social Security
CSRS
Single orphaned - $522 month per child
Maximum $1,566
Double orphaned - $627 month per child
Maximum $1,881
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35. FERS Death in Service 1 2 3 4 Lump sum payment of $33,072.03, plus
With more than 18 months of civilian service 1
Lump sum payment of $33,072.03, plus 2
Lump sum of half of employees pay, plus 3
Any Social Security benefit payable, plus 4
Any Thrift Savings Plan payable
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36. FERS Death in Service
With ten (10) or more years of creditable service, surviving spouse receives: 1 2 3 4 , , ,
(if payable), plus 5
A survivor annuity equal to 50% of FERS basic annuity at time of death
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37. CSRS Death in Service
Spouse of employee receives 55% of the higher of:
Annuity using regular CSRS formula
Guaranteed minimum which is lesser of:
40% of deceased High-3
Regular annuity calculated increasing length of service up to age 60
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38. Survivor Benefits Starts Day after employee’s or retiree’s death Ends
Spouse/former spouse
Remarries before age 55 (unless married 30 years)
Death
Child(ren)
Marries
Becomes 18 (22 if full-time student)
Recovers from disability
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39. Disability Retirement
FERS – 18 months of service
CSRS – 5 years of service
Unable to perform duties
Current job or
Other vacant job at same grade
Page  39

40. Disability Retirement
FERS Payment
CSRS Payment
60% of average High-3 salary for first year
Thereafter, 40% of High-3 salary
Amount is reduced by Social Security
Less than 22 years of service, based on 40% of High-3 salary
More than 22 years, computed under general formula
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41. Date for Voluntary Retirement
FERS
Last day of the month
CSRS
Last day of the month, or
1st, 2nd, or 3rd day of the month
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42. Processing Your Retirement
OPM
Sends acknowledgement
Authorizes interim payment
Obtains missing documents
Determines eligibility
Annuity
Health insurance
Life insurance
Computes benefits and sends letters
Page  42

43. After Retirement Changes after retirement contact OPM www.opm.gov
(contact after CSA number received)
Address: US Office of Personnel Management, 1900 E St NW, Room 1323, Washington, DC 20415
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44. Health and Life Insurance
Federal Employees Health Insurance (FEHB) and Federal Employees Group Life Insurance (FEGLI)
Page  44

45. FEHB Eligibility requirements:
Enrolled for at least 5 years prior to retirement
CHAMPUS/TRICARE can count towards your 5 years
Single or family coverage
Covered by a family enrollment
Enrolled since first opportunity
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46. FEHB Coverage and premiums same as employee
At age 65, Medicare is primary
Survivors of retirees or employee may continue coverage if:
Survivor benefit is payable, and
Employee/Retiree enrolled in family plan at time of death
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47. FEGLI Eligibility requirements:
Enrolled for at least 5 years prior to retirement, or
Enrolled since first opportunity
Annuity is sufficient to cover costs
Elections:
Basic coverage
Optional coverage (must elect Basic also)
Page  47

48. FEGLI Basic Life Insurance: Annual base pay plus $2,000
If under age 45, an “extra benefit”
Amount into retirement based on your election
Optional Life Insurance
Option A – Additional $10,000
Option B – One, two, three, four or five times basic pay
Option C – Family coverage
Page  48

49. Basic Life Insurance Options
75%
Reduction
Full coverage until 65
Age 65 begins reducing 2% per month
25% payable at death
Premium paid from retirement until age 65
50%
Age 65 begins reducing 1% per month
50% payable at death
Premium payable until death but reduces at age 65 No
Full basic insurance payable at death
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50. Cost of Various Options
Cost per $1,000 of Basic Life Insurance
Reduction at age 65 (and retired)
Cost before age 65
Cost on and after age 65 (and retired)
75% Reduction
$.325
Free
50% Reduction
$1.035
$.71
No Reduction
$2.455
$2.13
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51. Optional Life Insurance
May continue Optional Life Insurance coverage if:
Basic elected
Enrolled in Optional at least 5 years prior to entitlement
Annuity is sufficient to cover costs
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52. Optional Life Insurance Reductions
Full coverage until 65, coverage decreases at 65 based on elections:
Option A
Reduces to 25% ($2,500)
No premium at 65
Option B
Reduces to $0 unless no reduction election
Premium age-based
Option C
Premium based on retiree’s age
Not free if no reduction elected
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53. Cost of Optional Insurance
Age
Group
Option A
Standard
$10,000
Option B
Additional per $1,000
Option C
Family per
$5,000 Multiple
Under age 35
$0.43
$0.043
$0.48
35 through 39
$0.65
$0.065
$0.59
40 through 44
$0.87
$0.087
$0.89
45 through 49
$1.52
$0.152
$1.28
50 though 54
$2.38
$0.238
$1.99
55 through 59
$4.33
$0.433
$3.21
60 through 64
$13.00
$0.953
$5.85
65 though 69
FREE
$1.17+
$6.80+
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54. Living Benefits – Lump Sum
Lump-sum payment payable if:
Terminally ill
Documentation of life expectancy 9 months or less
Lump-sum payment equal to Basic
Retiree’s amount reduced based on post-65 election
Eligible employees (not retirees) may elect partial payment
Decision is irrevocable
Page  54

55. Who receives my life insurance?
Designated beneficiary (SF-2823)
Widow or widower
Children
Parents
Executor, Administrator of Estate
Next of kin
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56. Do You Have Any Questions?
Placeholder, enter your own text here
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57. Disclaimer
This presentation is provided for educational purposes only. Please contact Office of Personnel Management, the Thrift Savings Plan Board, the Social Security Administration, or your financial representative for advice.
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