FEFA has helped people get retired with as little as 7 days notice (although we appreciate 30 days). In order to avoid an extended interim period, we usually recommend submitting paperwork in advance. This timeline can be subject to change depending on the time of year the employee is retiring/how backed up OPM is with retirement paperwork.
Is there a cost to FEFA assisting me with my retirement paperwork?
No, FEFA charges nothing to assist Federal employees in filing their retirement paperwork. We love being a part of such an important transition for our clients. Some companies charge up to $600 for this service, but our proprietary system, makes the process simple, easy and lightening fast. We do ask that you tell as many people about us as possible in exchange!
Will my health insurance premiums increase because I am retiring?
No, unless you are a Postal employee, you will not see a change in health insurance premiums once you retire. Postal employees will see an increase because a portion of their health insurance was subsidized by the post office while they were working. However, once retired, they are no longer considered a Postal employee and they pay the same as everyone else in retirement. Please note that you want to be enrolled in FEHB for at least five years before retiring.
What will my FERS pension be?
As a FERS employee, you will receive .083% of your high 3 salary for every complete month of service that you worked. Military time and sick leave are factored into this and combine with your time served to add up to your total months. Please note that any remaining time meaning not a full month, will be lost. This is where retirement date strategy and sick leave strategy come into play to make sure that you do not work any extra days that are not counted toward your pension.
What will my supplement be?
The SRS (or FERS) Supplement is paid by OPM for FERS employees who retire before age 62, with full eligibility, and take an immediate pension. The supplement is calculated as a percentage of their expected social security payment at 62 (regardless of whether they take social security at 62). The percentage is calculated by taking FERS years of service (not including military time and sick), rounded to the nearest whole year, divided by 40. For example, an employee who retires with 30.25 years of service and a Social Security at 62 estimate of $1600 would receive 30/40 or get 75% of $1,600, or $1200 per month until the reached age 62.
The estimated Social Security at 62 can be found by going to https://www.ssa.gov/benefits/retirement/estimator.html. Just like Social Security, the supplement is subject to an earnings test which for 2018 is $17,040/year. This means that if you have W-2 or 1099 income exceeding $17,040, you will have to pay back $1 of the supplement for every $2 earn over this limit.
How much sick leave should I retire with?
This is different for everyone. In general, it is more valuable to use your sick leave instead rather than banking it. However, the goal is to retire with a sick leave balance that exactly completes month of service in which you retired/whole months past that. This is different for each employee and is based on your retirement computation date and expected retirement date. While the math behind this strategy is simple, not strategizing properly can cost thousands of dollars in lost wages. Please note: sick days in retirement are not based on an 8 hour day but instead on a 5.797 hour day.
What is the interim period?
The interim period is the period immediately following retirement in which the government is “figuring out” your exact retirement income. During this period you will usually only receive 70%-90% of your expected pension and no Special Retirement Supplement. However everything that was owed to you is paid in the form of a lump sum once OPM has figured out your exact numbers. We have seen the interim period be anywhere from 1 month to a year but usually is between two and four months.
A member of our team will contact you with an answer soon.
FEFA Headquarters 530 Vance Road St. Louis, MO 63088
Mon - Fri, 8am - 5pm CST
THE BRAND FEDERAL EMPLOYEES FIRST ALLIANCE IS OWNED BY EV FEDERAL LLC AND IN NO WAY IS AFFILIATED WITH OR A PART OF THE FEDERAL GOVERNMENT OR ANY AGENCY OF THE FEDERAL GOVERNMENT. FEDERAL EMPLOYEES FIRST ALLIANCE IS A PRIVATE COMPANY WHO ASSISTS FEDERAL EMPLOYEES IN UNDERSTANDING AND EXECUTING THEIR RETIREMENT OPTIONS.