On behalf of the Federal Executive Association of Connecticut (FEA), we would like to extend a heartfelt thank you to the Connecticut Fire Academy and Dining Services for generously hosting our recent Retirement Seminar. The event was a tremendous success, with overwhelmingly positive feedback from attendees.
We are pleased to have provided our fellow federal employees with a comprehensive look at retirement planning, covering a wide range of topics critical to making informed decisions about their future. Whether you're planning to retire soon or just want to get a head start on understanding your options, we hope this summary gives you valuable insights into the important subjects we discussed.
Topics Covered: A Deep Dive into Retirement Planning
Determining Creditable Service One of the first questions many federal employees ask is: “How do I calculate my creditable service?” In this session, we explored the different types of service that count toward your retirement. This includes covered service, non-deductible service, military service, and how unused sick leave is factored into your retirement benefits. Understanding these nuances can significantly affect your retirement calculations, and we’re glad we could help clarify the process.
Retirement Options There are various retirement options available, depending on whether you are part of the Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS). We broke down the different plans, including details on the Minimum Retirement Age (MRA), and how to choose the best option based on your personal circumstances. It’s essential to understand these different pathways to retirement to ensure you’re making the right choice for your financial future.
The Formula to Determine Minimum Retirement Age (MRA) What’s the magic number? Determining your Minimum Retirement Age (MRA) is a critical step in planning your retirement. We discussed how to calculate your MRA based on your years of service and age, along with the important decision of when to retire to ensure the maximum benefit. Choosing the right time is key, and knowing your MRA helps you plan with confidence.
Picking a DAY to Retire!! One of the most exciting (and sometimes overwhelming) decisions for federal employees is choosing the actual day to retire. We covered how to choose your retirement date carefully, considering various factors such as payroll cycles, annuity start dates, and the timing of your benefits. Picking the right day can make all the difference in your retirement income and benefits.
Annuity Computation – Personal Worksheet Understanding how your annuity is calculated is fundamental to knowing what you can expect in retirement. We walked through the Annuity Computation Worksheet, helping participants understand how their High-3 salary, years of service, and other factors affect their final annuity amount. The more you understand about how your annuity is computed, the better equipped you’ll be to make informed financial decisions.
High-3 and FERS Annuity Supplement For FERS employees, the High-3 average salary is a key factor in your annuity calculation. We discussed how this figure is determined and what it means for your retirement income. In addition, we explored the FERS Annuity Supplement, which is available to FERS employees who retire before age 62. This supplement can provide a significant boost to your retirement income, but it’s important to understand the eligibility criteria and how it’s phased out.
Death Benefits and Taxation of Annuities Federal employees often have questions about how their death benefits work and how their annuities will be taxed upon death. We covered the different options available for survivors, including the Survivor Benefit Plan (SBP) and the taxation implications of your annuity payments. Planning for these contingencies is essential to ensure your loved ones are taken care of after you retire.
Cost of Living Adjustment (COLA) Another important consideration for retirees is how their income will keep pace with inflation. We discussed the Cost of Living Adjustment (COLA), which is designed to ensure that your annuity benefits maintain their purchasing power over time. Understanding COLA and how it impacts your future income can help you plan for long-term financial security.
Social Security and Thrift Savings Plan (TSP) Overview No retirement discussion is complete without a review of Social Security and the Thrift Savings Plan (TSP). We went over the basics of Social Security eligibility, how it interacts with your federal benefits, and the importance of the TSP in building your retirement savings. The TSP offers a wide range of investment options, and understanding how to maximize its potential can make a big difference in your retirement income.
Other Federal Benefits – FEGLI, FEHB, Flexible Spending, FED Dental and Vision Federal employees have access to a range of benefits that can provide valuable support in retirement. We covered FEGLI (Federal Employees Group Life Insurance), FEHB (Federal Employees Health Benefits), and other programs such as Flexible Spending Accounts, Dental, and Vision Insurance. Knowing how these benefits work during retirement and how to maintain them is an important part of preparing for a secure future.
Special Considerations for Military Veterans and Law Enforcement For military veterans and law enforcement officers, there are unique retirement considerations. We highlighted how military service is credited toward federal retirement benefits, and we also covered the special retirement benefits available to law enforcement officers. These benefits can significantly impact your retirement timeline and overall financial planning, so it’s essential to understand how they apply to your situation.
Looking Ahead: More Opportunities to Learn and Grow
We hope this seminar provided valuable insights and a clearer picture of what to expect in retirement. Whether you are nearing retirement or just starting to think about it, our goal is to continue providing you with the resources and information you need to make informed decisions.
Stay tuned for future events, where we’ll dive deeper into specific retirement topics and offer opportunities to connect with experts in the field. Your retirement journey is unique, and we’re here to help you navigate it with confidence.
Until next time, keep planning for your future, and remember that the Federal Executive Association of Connecticut is always here to support you!
Join Us at the Holiday Full Membership Meeting!
As we close out the year, we invite you to come together with fellow members at our upcoming Holiday Full Membership Meeting. This is a wonderful opportunity to celebrate our achievements, connect with colleagues, and look ahead to the year to come. We’ll also have a chance to reflect on the importance of the work we do and to recognize the collective impact we have in our communities.
The meeting will be held on Wednesday, December 12, 2024 at the Olympia Diner, Newington, CT , and we would love to see you there. Please RSVP by clicking the link below to reserve your spot.
RSVP Here: feact.net/events
Wishing you and your loved ones a joyful Thanksgiving and a peaceful holiday season. Thank you again for all that you do.
With gratitude,The Federal Executive Association of Connecticut
Comments