Federal Employees Retirement System
In 1986, Congress created the Federal Employees Retirement System (FERS), which went into effect on January 1, 1987, after which time all new Federal civilian employees with retirement plans were covered by the program. Under FERS, government employees can create retirement plans from three different sources: Basic Benefit Plans, Social Security, and the Thrift Savings Plan (TSP).
Of these, TSP and Social Security follow you when you leave your government job prior to retirement. Basic Benefit and Social security plans require you to pay each pay period through payroll deductions. The agency will also contribute to these plans. When you retire, you will receive monthly annuity payments for a lifelong income source.
TSP accounts are automatically set up for employees by the agency. When you are paid, the agency will deposit 1 percent of your basic pay earned during the pay period into your TSP account. You can add your own contributions, which your agency will match. Your contributions are tax-deferred. These plans are overseen by the Federal Retirement Thrift Investment Board.
To learn more about TSP, visit their website. The Social Security Administration website also has information about that portion of the retirement benefit. Visit the links below for more information about the topics relating to FERS.
Eligibility – Lists the main eligibility requirements for FERS retirement benefits.
Creditable Service – The rules that show which military and civilian service can be used when computing FERS retirement benefits.
Disability – The rules governing retirement due to disability.
Voluntary – Requirements for the most common way people retire.
Early Retirement – Explains the Minimum Retirement Age and the process for early retirement if your agency undergoes a “reduction in force” or you are otherwise involuntarily separated unless for a cause.
Deferred – Former Federal employees who were covered by FERS may be eligible for a deferred annuity at 62 or the Minimum Retirement Age.
Computation – Explains how your retirement benefit is computed.
Former Employees – Lists options for government employees who leave their jobs prior to becoming eligible for retirement benefits.
FERS Annuity Supplement – An additional annuity some retirees can receive to bridge the gap between retirement and the age when they can receive their Social Security benefit.
Service Credit – This payment increases your annuity for civilian service when no FERS retirement deductions were withheld. Also offered if deductions were refunded and for those in military service after 1956.
We provide no cost consultations for all Federal Employees. Through this consultation you will receive a better understanding of your entire benefits package and how each part will affect your retirement. Analysis will be done on the following items: Survivor Benefits, FERS or CSRS annuities, TSP, FEGLI, Social Security and much more. This analysis is done by 1st Opulence Financial. Please fill out the information and fax it back to 1(866)537-1745 and a member of our team (Brian Whitaker) will contact you.