Good sources of info

http://www.postalworkersonline.com/retirement.htm

 http://www.apwuflorida.org/retiree/RetirementTips.htm

  

Calculate your retirement:

http://www.fedcalc.com/my/index.php  

 

Ball Park estimates on retirement

Looking for a way to track how well you’re doing in meeting your retirement savings goal? The Office of Personnel Management developed the Federal Ballpark Estimate — a savings goal worksheet — just for that purpose. It’s available at: http://www.opm.gov/benefits/ballpark/menu.asp.

Retirees and Rebates

Good news for retirees - federal, postal, military or Social Security. If you paid federal taxes last year, you will be getting a tax rebate of up to $600 for singles and $1,200 for married couples filing jointly. The rebates are part of the hurry-up automatic stimulus package signed into law. It is supposed to either head off a recession or, if we are already in one, to ease or end it.

Originally, retirees were not included in the package, but pressure from groups representing them, and politicians, fixed that. We've had many calls and e-mails on the subject. We forwarded one to Dan Adcock of the National Active and Retired Federal Employees Association. Here's his reply in part:

The new law allows Americans to receive a tax rebate through two options:

First, workers, retirees and others who paid federal income taxes in 2007 will receive a check up to $600 per person or $1,200 per couple allowed for those without dependent children. (Taxpayers with children will receive an additional $300 per child). The rebates begin to phase out at $75,000 and $150,000 adjusted gross income (AGI) for single and joint filers, respectively, with the rebate effectively eliminated for taxpayers without dependent children at $87,000 and $186,000 AGI for single and joint filers, respectively.

Second, workers, retirees and others who paid little or no income taxes, but earned wages, Social Security benefits or disabled veteran benefits would qualify for payments of $300 for individuals or $600 for couples filing joint returns.

Adcock has written an article on the subject that will appear in the April issue of NARFE's Retirement Life Magazine. For information about NARFE individuals can call 1-800-627-3394. Or checkout their website at www.narfe.org

What Should All Retirees Know?

By John Grobe

Wednesday, March 12, 2008

You can have daily headlines from FedSmith.com delivered right to your desktop each business morning. The service is free and you don't get junk e-mail as the price of your subscription. Just visit our newsletter page to sign up!

I was planning to write an article with the catchy title "Ten Things All Prospective Retirees Must Know" when I realized that I really didn't know if there were actually ten things, or if it was another number altogether. So I got out pen and paper and started listing.

It didn't take me long to realize that "all prospective retirees" is an elusive demographic. We have many sub-groups, and they may need to know totally different things. For example, we have prospective:

• CSRS retirees
• CSRS Offset retirees
• FERS retirees
• Trans-FERS retirees
• Special category retirees (which are a subgroup of the above four groups)

o Law-enforcement and firefighter
o Military technicians
o Air traffic controllers

• Early retirees
• Deferred retirees
• Retirees who have withdrawn their contributions to the retirement fund and not paid them back
• Retirees who owe a military deposit
• Retirees who are also military retirees (regular or reserve)

I would like to do a list of everything anyone needs to know before they retire. The list could be published on FedSmith, and myself and others could provide links to already published articles and write articles on the areas that hadn't been covered. We could keep the articles in the "Retirement Corner" of FedSmith. Please use the comments section of this article to tell me what you think all retirees should know.

Retirement Planning

Countdown to Retirement

By Tammy Flanagan National Institute of Transition Planning March 14, 2008

So you've set your retirement date and discussed your plans with those who will be affected by your decision. Your co-workers and family members all have assured you that you've made the right choice and you're beginning to picture your new life.

Even if you've picked a date almost a year away, though, there are things you should begin to do to make sure the process is a smooth one. Here's a brief checklist.

Complete your retirement application. This should be done at least three months before your retirement date (or as soon as possible after you've made the decision to retire if you are leaving in less than three months). You might need some time to research and ponder decisions regarding survivor benefits, previous federal service and insurance options. Here are links to the relevant forms: Civil Service Retirement System Application, Federal Employees Retirement System Application.

Request a final retirement estimate from your human resources office. You might have an estimate you requested a year or more ago. But now that you've set an exact date, you'll be able to get a more accurate calculation. Then you can review it and ask questions to be sure you understand how it was computed and that it accurately reflects your career. Remember, it still will be only an estimate. The Office of Personnel Management must finalize the amount you receive.

Make decisions regarding any service credit payments that are outstanding. These unpaid "deposits" can permanently affect the amount of your retirement benefits. If you're not sure about this issue, here are four columns that address it:

• Getting Credit (Jan. 27, 2006)
• Buying Retirement Credit (Feb. 10, 2006)
• Redepositing CSRS Refunds (Feb. 17, 2006)
• Military Service Payback (Feb. 24, 2006)

If you're divorced, consider the implications. Does your former spouse have any rights to a portion of your retirement, survivor benefits, or Thrift Savings Plan funds? You will need to submit a copy of your divorce decree with your retirement application if your former spouse was awarded a survivor annuity under CSRS or FERS. For more information, see D-I-V-O-R-C-E (Aug. 24, 2007).

Request that state taxes be withheld from your benefits, if necessary. OPM will automatically advise you regarding federal income tax withholding. (Here's a withholding calculator from the OPM Web site.) But it's up to you to request to have state income tax withheld. Some states won't tax your retirement payments; others will, but not necessarily at the same rate as other income. Here's a summary of state tax rules for 2007.

Make a plan to withdraw your TSP funds. Don't send in a withdrawal request until you have been out of government for at least 30 days. It's important to allow time for your agency to notify the TSP that you are no longer a current employee. Here are some forms and publications to get you started:

• TSP 77, Request for Partial Withdrawal When Separated
• TSP 70, Request for Full Withdrawal When Separated
• TSP Book 2, Withdrawing Your TSP Account after Leaving Federal Service
• Important Tax Information about Payments From Your TSP Account

Contact the Social Security Administration if necessary. Here are a couple of situations where it might be: If you're old enough and eligible to begin receiving Social Security benefits; or if you already are receiving benefits because you are over the full Social Security retirement age, but are getting ready to retire and collect a CSRS retirement. You can contact SSA on its Web site or by calling 800-772-1213.

Reevaluate your insurance needs. You may be able to reduce your life insurance if your kids are now grown and your house is paid off. Here's a calculator to determine how much Federal Employees Group Life Insurance you are currently carrying and how much it is costing you. You may also want to consider purchasing long-term care insurance if you don't already have a policy.

Make sure you'll be eligible to maintain your Federal Employees Health Benefits Plan coverage into retirement. To continue coverage, you must have retired on an immediate annuity, and have been continuously enrolled (or covered as a family member) in any FEHBP plan for the five years of service immediately preceding retirement -- or if less than five years, for all service since your first opportunity to enroll. You can continue coverage under the Federal Employees Dental and Vision Insurance Program into retirement without having five years in the plan. And retirees can enroll in FEDVIP coverage during annual open seasons.

Tammy Flanagan is the senior benefits director for the National Institute of Transition Planning Inc., which conducts federal retirement planning workshops and seminars. She has spent 25 years helping federal employees take charge of their retirement by understanding their benefits.

Retirement Shock Number

Two: Where Is All My

Money Going?

By Ralph Smith

Monday, July 12, 2004

several articles on "retirement shocks

How much money do you spend each year now? Will you spend a lot less after you retire? If not, can you afford to spend at the same level you did when you were working?

Here's a safe bet: Plan on spending the same amount after retirement as you did before retirement.

Most people planning to retire expect to spend much less than when they were working. You can probably list some of the major reason you plan for your expenses to be reduced.

* You won't have the same commuting costs;
* clothes will cost less since you can wear shorts and sandals all the time if you choose to;
* no more lunches out of the office every day in an expensive downtown environment;
* no more parking fees at the garage near your office;
* you won't need that second car for commuting so you will save on car insurance and the cost of the car;
* I am selling my house in the city and moving to a rural area where prices are lower.

But here's another side to retirement.

You may find your expenses are the same and could even be higher if you are not careful.

It's true that your expenses may change from those you have when you work each day. But you will have more time to spend your money and, if you are like most people, you will find interesting ways to spend.

And, according to the Wall Street Journal in citing research by the Center for Risk Management and Insurance Research at Georgia State University, the more you earn before retirement, the more you will spend after you walk out the door of your agency for the last time as an employee.

Very few federal employees will qualify as being exceptionally wealthy. But most federal employees are much better off financially than most American retirees. This may be especially true of those who have worked under the Civil Service Retirement System (CSRS) for their entire career.

People who are are affluent but not exceptionally wealthy find themselves buying new cars (to take a trip now that they have the time); they remodel their homes ("We have wanted to do this for years but never got around to it"); take on new and expensive hobbies ("I always wanted to learn how to fly and now I can!").

People who are exceptionally affluent don't change their lifestyles much. They have already bought the new car, new home and the Cessna airplane if they really wanted to. Most of us couldn't do that and have to be careful.

In short, you will have the time to do a number of things you have wanted to do but did not have the time. Just remember those dream vacations and new hobbies can cost a lot of money. Financial planners often advise their clients to plan on spending as much after retirement as they did before they retired. Not planning carefully can take you from the idyllic beach in Hawaii and back to Uncle Sam as a re-employed annuitant (if you are fortunate enough to get a job that pays that much) or working at your local retail store to help make ends meet.

Emergency Room Wait Times Becoming Dangerously Long
According to a recent study published in the journal Health Affairs, emergency room wait times are continuing to rise, even in cases when delays could mean life or death.  Fifty percent of all emergency room patients in 2004 waited at least 30 minutes to see a doctor, and half of all people experiencing heart attacks waited at least 20 minutes, significantly longer than the eight minutes they were delayed in 1997.  A growing number of people seeking non-emergency care, personnel shortages, an aging population, and a decreasing number of hospitals - and therefore emergency departments - all contributed to the increased waits.  “No one should have to rely on an emergency room as a primary care physician,” said Ruben Burks, Secretary-Treasurer of the Alliance.

More Than 3 Million Seniors Will Fall into Donut Hole Next Year
More seniors than ever are expected to fall into the Medicare Part D “donut hole” next year, the coverage gap in which beneficiaries must pay the full cost of their prescription drugs.  More than 3 million out of 24 million Part D enrollees will have to pay $4,050 in out-of-pocket expenses, including deductibles and co-pays, before Medicare will offer catastrophic coverage and pay for 95% of prescription drug costs.  This is a $200 increase over the $3,850 in out-of-pocket expenses required for catastrophic coverage to occur this year.  Medicare will pay 75% of prescription costs up to $2,510 in 2008, up from $2,400 in 2007.  However, total drug costs must reach $5,726 next year, up from $5,451 in 2007, before the catastrophic coverage kicks in.  “Between rising premiums, fewer prescriptions being covered, and the growing donut hole, seniors will pay more for their drugs on every front next year,” said Edward Coyle, Executive Director of the Alliance.

Omnibus Deal is Near on Federal Budget
On Thursday, Democratic leaders in Congress indicated they would work with Republicans to complete an omnibus spending bill close to Bush’s budget cap, while keeping most earmarks and trying to protect other Democratic spending priorities.  So far, the Defense appropriations bill is the only one of the 12 regular fiscal 2008 spending bills that has been signed into law.  The omnibus spending bill being prepared will roll the 11 remaining fiscal 2008 spending bills into one package.  According to Roll Call, Democrats have told all of the Appropriations subcommittee chairs to find savings within their jurisdiction, through a combination of cutting earmarks and individual programs, as well as across-the-board reductions.  House Speaker Nancy Pelosi (D-CA) said the plan would be at the president’s budget number but with Democratic priorities, protecting programs like cancer research at the National Institutes of Health.  A Senate aide said that Republicans are operating under an agreement by which the regular appropriations will come in at the president’s overall number, $933 billion, but that an additional $3.7 billion in emergency spending for veterans’ health care would be included as well.  A final package is not likely to be completed until early next week.  In the meantime, the House brought a short-term continuing resolution (CR) to the floor - also on Thursday - to keep the government running through December 21.  The Senate was expected to follow suit no later than Friday.  “The State Children’s Health Insurance Program (SCHIP) has now been extended through next week,” said Ruben Burks, Secretary-Treasurer of the Alliance, in referring to the CR.  “Congress was at least able to limit somewhat the damage done by President Bush’s SCHIP vetoes.”

Is One of the 54 Worst Nursing Homes in America Near You?
The Centers for Medicare and Medicaid Services recently identified 54 American nursing homes as among the worst in their areas.  The list of facilities is designed to encourage homes to improve patient care and make recognizing troubled homes easier for consumers.  Each facility accepting government payment undergoes yearly safety and quality of care inspections; these visits determine whether residents are receiving the proper medications, appropriate assistance with daily needs such as diet and bathing, and are protected from accidents and infections.  Of the 16,400 nursing homes around the country, each year 120 are selected as “special focus facilities” to undergo inspections every six months instead of yearly.  Those listed demonstrated a significant lack of improvement in following assessments after earning the special focus description.  The list is available at http://www.usatoday.com/news/nation/2007-11-28-nursing-home-list_N.htm.  

Emergency Room Wait Times Becoming Dangerously Long
According to a recent study published in the journal Health Affairs, emergency room wait times are continuing to rise, even in cases when delays could mean life or death.  Fifty percent of all emergency room patients in 2004 waited at least 30 minutes to see a doctor, and half of all people experiencing heart attacks waited at least 20 minutes, significantly longer than the eight minutes they were delayed in 1997.  A growing number of people seeking non-emergency care, personnel shortages, an aging population, and a decreasing number of hospitals - and therefore emergency departments - all contributed to the increased waits.  “No one should have to rely on an emergency room as a primary care physician,” said Ruben Burks, Secretary-Treasurer of the Alliance.

More Than 3 Million Seniors Will Fall into Donut Hole Next Year
More seniors than ever are expected to fall into the Medicare Part D “donut hole” next year, the coverage gap in which beneficiaries must pay the full cost of their prescription drugs.  More than 3 million out of 24 million Part D enrollees will have to pay $4,050 in out-of-pocket expenses, including deductibles and co-pays, before Medicare will offer catastrophic coverage and pay for 95% of prescription drug costs.  This is a $200 increase over the $3,850 in out-of-pocket expenses required for catastrophic coverage to occur this year.  Medicare will pay 75% of prescription costs up to $2,510 in 2008, up from $2,400 in 2007.  However, total drug costs must reach $5,726 next year, up from $5,451 in 2007, before the catastrophic coverage kicks in.  “Between rising premiums, fewer prescriptions being covered, and the growing donut hole, seniors will pay more for their drugs on every front next year,” said Edward Coyle, Executive Director of the Alliance.

Omnibus Deal is Near on Federal Budget
On Thursday, Democratic leaders in Congress indicated they would work with Republicans to complete an omnibus spending bill close to Bush’s budget cap, while keeping most earmarks and trying to protect other Democratic spending priorities.  So far, the Defense appropriations bill is the only one of the 12 regular fiscal 2008 spending bills that has been signed into law.  The omnibus spending bill being prepared will roll the 11 remaining fiscal 2008 spending bills into one package.  According to Roll Call, Democrats have told all of the Appropriations subcommittee chairs to find savings within their jurisdiction, through a combination of cutting earmarks and individual programs, as well as across-the-board reductions.  House Speaker Nancy Pelosi (D-CA) said the plan would be at the president’s budget number but with Democratic priorities, protecting programs like cancer research at the National Institutes of Health.  A Senate aide said that Republicans are operating under an agreement by which the regular appropriations will come in at the president’s overall number, $933 billion, but that an additional $3.7 billion in emergency spending for veterans’ health care would be included as well.  A final package is not likely to be completed until early next week.  In the meantime, the House brought a short-term continuing resolution (CR) to the floor - also on Thursday - to keep the government running through December 21.  The Senate was expected to follow suit no later than Friday.  “The State Children’s Health Insurance Program (SCHIP) has now been extended through next week,” said Ruben Burks, Secretary-Treasurer of the Alliance, in referring to the CR.  “Congress was at least able to limit somewhat the damage done by President Bush’s SCHIP vetoes.”

Is One of the 54 Worst Nursing Homes in America Near You?
The Centers for Medicare and Medicaid Services recently identified 54 American nursing homes as among the worst in their areas.  The list of facilities is designed to encourage homes to improve patient care and make recognizing troubled homes easier for consumers.  Each facility accepting government payment undergoes yearly safety and quality of care inspections; these visits determine whether residents are receiving the proper medications, appropriate assistance with daily needs such as diet and bathing, and are protected from accidents and infections.  Of the 16,400 nursing homes around the country, each year 120 are selected as “special focus facilities” to undergo inspections every six months instead of yearly.  Those listed demonstrated a significant lack of improvement in following assessments after earning the special focus description.  The list is available at http://www.usatoday.com/news/nation/2007-11-28-nursing-home-list_N.htm.  

The Government Pension Offset

By John

10/11/2007

Click here for more articles by John Grobe

You can have daily headlines from FedSmith.com delivered right to your desktop each business morning. The service is free and you don't get junk e-mail as the price of your subscription. Just visit our newsletter page to sign up!

A short time ago, FedSmith posted two articles that I wrote about the Windfall Elimination Penalty (WEP).  One article was about the penalty in general, and one was about how it affected CSRS Offset employees/retirees.  In this article, we will take a look at the Government Pension Offset (GPO).

Like the WEP, the GPO affects anyone who is receiving a pension from work not covered by Social Security.  That would be any one who is CSRS, CSRS Offset, or a FERS employee who transferred from CSRS. The good news for CSRS Offset or FERS transferees is that they become exempt from the GPO after working five years under CSRS Offset or FERS.  In fact, folks who transferred to FERS during the first open season were immediately exempt from the GPO.

Unlike the WEP, which reduces the Social Security you have earned on your own account, the GPO reduces the Social Security to which you are entitled on the account of another (i.e., spousal or survivor benefits).  Actually, reduces is far too mild a word.  In almost every situation the GPO eliminates any spousal or survivor benefit to which you might be entitled.

The Social Security spousal or survivor benefit to which you are entitled through a living or deceased spouse is reduced $2 for every $3 of your CSRS pension.  Your benefit is likely to be totally eliminated due the fact that your CSRS pension is likely to be significantly greater than any spousal benefit (max = 50% of your spouse's SS) or survivor benefit (max = 100% of your deceased spouse's SS).

The Windfall Elimination Provision and CSRS Offset Retirees

By John Grobe

9/26/2007

Click here for more articles by John Grobe

You can have daily headlines from FedSmith.com delivered right to your desktop each business morning. The service is free and you don't get junk e-mail as the price of your subscription. Just visit our newsletter page to sign up!

I was looking at some of the comments on my article "Windfall Elimination and Your Retirement Future" (WEP) and several readers asked for some information as to what the WEP does to CSRS Offset retirees.  Now, CSRS Offset folks are an exclusive bunch; and if you don't know what I mean by CSRS Offset – you are not one of them.

CSRS offset employees are employees who were vested in CSRS as of 12/31/1986, had a break in service of over one year and chose CSRS Offset over FERS upon their return to federal service.  The fact that they are vested in CSRS is what makes them subject to the WEP.

The good news is that many CSRS Offset employees have enough years of substantial earnings under Social Security to either eliminate or mitigate the WEP.  A link to the Social Security factsheet on the WEP was included in the September 26th article and the sheet contains a list of what constitutes substantial earnings.

It takes 30 years of substantial earnings to eliminate the WEP.  More than 20 years of substantial earnings can mitigate it.  To determine how many of these years you have, take your most recent Social Security Statement and compare the annual earnings out of which Social Security taxes were withheld with the substantial earnings thresholds.  If you've got 30 – you're home free.

Windfall Elimination and Your Retirement Future

By John Grobe

9/26/2007

Click here for more articles by John Grobe

You can have daily headlines from FedSmith.com delivered right to your desktop each business morning. The service is free and you don't get junk e-mail as the price of your subscription. Just visit our newsletter page to sign up!

The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) are two provisions of the Social Security law that affect Social Security benefits to which CSRS retirees may be entitled. Like many other aspects of retirement rules and regulations, they can cause a good deal of confusion among current and prospective CSRS retirees. Consider the names themselves:

• The Windfall Elimination Provision does not eliminate a Social Security benefit to which you are entitled on your own earnings record. It will, however, generally drastically reduce it.
• The Government Pension Offset's offset of any Social Security benefit to which you would be entitled on the earnings record of another is usually so severe that it completely eliminates such benefit.

These two provisions were introduced in the 1980's in an early attempt to shore up the Social Security system and public employee supporters in Congress have been trying to repeal or revise them since then.

In fact, these two provisions do not target only CSRS employees. They apply to anyone who has earned pension benefits based on work not covered by Social Security (i.e., work from which Social Security deductions had not been withheld). This would include CSRS Offset employees and FERS employees who transferred from CSRS after having five years of civilian service (enough to entitle them to a CSRS retirement benefit).

The remainder of this article will take a look at the Windfall Elimination Provision. A future article will review the Government Pension Offset and discuss legislation about the repeal or modification of WEP and GPO.

The Windfall Elimination Provision affects only Social Security benefits to which you are entitled based on your own earnings record. As long as you have earned 40 credits (formerly known as quarters of coverage) you will receive some kind of Social Security benefit.

The Social Security System has a need-related component that is designed to replace a much greater portion of a low wage earner's income than that of the high wage earner. CSRS employees, and others who have earned a retirement benefit based on work that was not covered by Social Security, most likely have many years in their Social Security earnings record where they had little or no employment covered by Social Security. They would look like a low wage earner to the Social Security system, even though they had been working at a good job and earning a pension the entire time.

Describing how Social Security retirement benefits are computed would take up too much space here, but Social Security uses a much higher (90%) computation factor for the lowest portion of Social Security earnings. For retirees who are entitled to a pension based on work not covered by Social Security, that computation factor could be as low as 40%.

If you have 20 or fewer years of substantial earnings (most of us CSRS folks) your benefit will be computed using the 40% factor. For years over 20, the factor increases by 5% a year until it reaches 90% after 30 years. A Social Security Factsheet on the WEP is available here and has a chart on what constitutes substantial earnings.

We all should be getting Social Security Statements from the Social Security Administration on an annual basis. If we have already earned 40 credits, there will be an estimated benefit listed. Unfortunately, the SSA computers do not know that we are CSRS employees who are subject to the WEP. You can go to the Social Security website and use their WEP calculator, or you can try this computation:

• If the monthly benefit shown on your Social Security Statement is less than $680, cut it in half
• If the monthly benefit shown on your Social Security Statement is greater than $680, subtract $340 from it.

For Disability Retirement information go to:

http://www.lunewsviews.com/editorials/articles/mcgill.htm

Alliance for Retired Americans

www.retiredamericans.org.

Contact: Steve Pittman, 1634 W Van Buren, Chicago, Il 60612.  312.243.6296 or 800.842.6938. Email is illinoisara@sbcglobal.net. or spittman@retiredamericans.org.  773.343.0489.

HQ - 815 16th St. NW  4th Floor North, Washington D.C. 20006.