Friday, 12 February 2016

Three things Federal Employees Need to Know about Retirement

Government employees may be aware of the Federal Employees Retirement System or FERS, but there are more benefits in store for those who have served their country for more than five years. Before making retirement plans, here are three things every federal employee should know.

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Image source: Themilitarywallet.com

The basic benefits

The monthly cut from the paycheck goes to these three plans: Basic Benefit Plan, Social Security, and Thrift Savings Plan. The agency also gives a share on behalf of each worker. The TSP and Social Security can still be used even after retiring in federal service while the share from the Basic Benefit Plan can be obtained after working for five years for the government.

Counseling and assistance

Every government agency is obligated to give counseling and assistance to their retiring employees. Would-be retirees will be assisted from the application to the selection of the retirement date to facilitate the transition. Even after the retirement date, they may receive help for getting deposits and creditable service.

Unused sick leaves

Beginning January 2014, federal employees with unused sick leaves will receive 100 percent credit. Those who retired on or before Dec. 31, 2013 are still going to receive 50 percent credit. A formal letter must be filed with the employing agency to get credit for these absences.

Government employees deserve to get first-class benefits for serving the nation. It is only best to treat them well even in retirement to reward them for their contribution.

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Linda O. Foster from Poulsbo, Washington is a federal employee benefits specialist helping employees of all ages reach their financial goals. Read more articles on retirement planning here.

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