Went To Dinner With Retired Irs Agent

[rightwinger]

Me thinks your friend was pulling your leg, my dear.

if you retire after 20 years, (your friend retired at 28 years) you get for retirement, 1.0% of your income for the 3 highest income years, for every year you worked for them....

so IF I am understanding this correctly, this woman would get as her retirement, around 28% of her highest income earned average as her retirement and NOT 90%?

Here's the link explaining federal retirement:

FERS Information

That's pretty much correct. They also have their TSP (Thrift Savings Plan) with a 5% government match up to a certain point, I don't have my charts in front of me. And FERS get Social Security. Good health plan, too, and good survivor benefits.

28 years, she's probably set up pretty well, lifetime benefits.

Better overall package than most accountants get in the private sector, by a long shot.

.

You would think it would cause people to flock to Federal service

I don't know what the openings/applicants ratio is, that would be an interesting comparison.

We used to BEG for applicants

Most would look at the salary and laugh. Trying to explain how good the retirement package was fell on deaf ears

Now the quality of the employee is down and the costs have skyrocketed. Try to explain that.

I would beg to differ

I find the quality of federal employees to be much higher than they were 20 years ago. Keep in mind, a major portion of federal employees are professionals...... lawyers, engineers, accountants,doctors. 20 years ago these professionals laughed at the idea that they would sink to being a lowly federal employee
But then they were burned by massive layoffs and their promised retirement evaporated. They understand the benefits of job security and pension and health benefits

We get much better employees now

 

[Carla_Danger]

Would the OP like to provide the rest of us with his or her former USMB forum name?

Thanks.

Then.....how about saying that you are sorry for posting this OP.

Finally.....who paid for dinner?

Never had another name, not sorry for anything...and while it is none of your business, I paid for my immediate family, and she paid for her immediate family and there was another "family group" there as well (although all three "families" were distantly related).

You're barking up the wrong tree with whatever you're thinking.

You're not sorry for posting misinformation about her retirement? How Republican of you.

If she's smart, she will start uninviting you to family gatherings, remove you from her Facebook page, and block your emails.

 

[Carla_Danger]

Me thinks your friend was pulling your leg, my dear.

Age	Formula
Under Age 62 at Separation for Retirement, OR Age 62 or Older With Less Than 20 Years of Service	1 percent of your high-3 average salary for each year of service
Age 62 or Older at Separation With 20 or More Years of Service	1.1 percent of your high-3 average salary for each year of service

[THEAD] [/THEAD]
[TBODY] [/TBODY]

if you retire after 20 years, (your friend retired at 28 years) you get for retirement, 1.0% of your income for the 3 highest income years, for every year you worked for them....

so IF I am understanding this correctly, this woman would get as her retirement, around 28% of her highest income earned average as her retirement and NOT 90%?

Here's the link explaining federal retirement:

FERS Information

That's pretty much correct. They also have their TSP (Thrift Savings Plan) with a 5% government match up to a certain point, I don't have my charts in front of me. And FERS get Social Security. Good health plan, too, and good survivor benefits.

28 years, she's probably set up pretty well, lifetime benefits.

Better overall package than most accountants get in the private sector, by a long shot.

.

Well, her 401k with the 5% match can not be touched without penalty, until she is a senior, and her social security is not available until she is a senior as well, so what she is living on now is not that much....

And yes, it is very difficult in the private sector now a days, to get a good retirement...mainly due to the way we workers have to improve our current salaries, and this is by moving from one job opportunity to another and not being with the same company for a lifetime..

I knew something didn't smell right in the OP. Thanks for the link.

 

[OODA_Loop]

[QUOTE="JakeStarkey, post: 9803497, member: 20412]

Don't blame others for what you have not done.[/QUOTE]

Unless it is politically expedient to drive a wedge between Producers and Takers.

 

[JakeStarkey]

The working middle class are the producers, for they create demand, thus they are the job creators.

Manage your money, folks. You can't have a $300K house at 22 and think that is good money management for the future, along with your cars, your social media and cells, your kids, and so forth.

You have to plan.

 

[eagle1462010]

Example calculations

FERS Retirement Pension Calculation

#3) Your Pension Multiplier
For most FERS, their pension multiplier is 1%.

However if you are age 62 or older at separation, with 20 or more years of service, your multiplier will be 1.1%

Examples of FERS Pension Calculation:
So your FERS retirement pension is determined by three factors, your High-3 Salary, your Years of Creditable Service and your Pension Multiplier.

For most FERS, their pension multiplier is 1%. So their FERS Retirement pension formula comes together as...

Let's take an example. For easy numbers, let's say your High-3 Salary is $100,000. You have 25 years of creditable service. If you are younger than age 62, your pension multiplier would be 1%.

In this example, your pension would be calculated as...



$100,000 x 25 Years x 1% = $25,000/year
.................................................or $2,083/month


But now let's say you were at least age 62 with 25 years of service.

In this case, your pension multiplier would be 1.1% and your pension formula would come together as...

In this case - if you were age 62, with 25 years of service and a High-3 Salary of $100,000 your pension would be calculated as...



$100,000 x 25 Years x 1.1% = $27,500/year
................................................or $2,291/month


If you're thinking about working until age 62, with 20 or more years of service - check out our page on the FERS Age 62+20 Retirement Bonus.

 

[eagle1462010]

Military retirement rates and how they are determined

Retirement

In any case, the longer an individual serves, the higher the multiplier and the higher the retirement pay. For example:

Years of Service	10	15	20	21	22	23	24	25	30	35	40	41
Final Pay	25%	37.5%	50%	52.5%	55%	57.5%	60%	62.5%	75%	80%	100%	102.5%
High-36	25%	37.5%	50%	52.5%	55%	57.5%	60%	62.5%	75%	80%	100%	102.5%
REDUX*	n/a	n/a	40%	43.5%	47%	50.5%	54%	57.5%	75%	80%	100%	102.5%

[TBODY] [/TBODY]

 

[Harry Dresden]

Me thinks your friend was pulling your leg, my dear.

Age	Formula
Under Age 62 at Separation for Retirement, OR Age 62 or Older With Less Than 20 Years of Service	1 percent of your high-3 average salary for each year of service
Age 62 or Older at Separation With 20 or More Years of Service	1.1 percent of your high-3 average salary for each year of service

[THEAD] [/THEAD]
[TBODY] [/TBODY]

if you retire after 20 years, (your friend retired at 28 years) you get for retirement, 1.0% of your income for the 3 highest income years, for every year you worked for them....

so IF I am understanding this correctly, this woman would get as her retirement, around 28% of her highest income earned average as her retirement and NOT 90%?

Here's the link explaining federal retirement:

FERS Information

That's pretty much correct. They also have their TSP (Thrift Savings Plan) with a 5% government match up to a certain point, I don't have my charts in front of me. And FERS get Social Security. Good health plan, too, and good survivor benefits.

28 years, she's probably set up pretty well, lifetime benefits.

Better overall package than most accountants get in the private sector, by a long shot.

.

You would think it would cause people to flock to Federal service

i was under civil service.....much nicer....

 

[Harry Dresden]

I too missed the "career boat".

I will never be able to retire (unless I win the lottery), and I will die penniless.

But by God I'm determined to die happy.

You will likely live much longer and live happily. When people retire, they tend to die. Retirement is boring.

thats bull....i knew lots retires at a complex i delivered mail too that were retired longer than they worked......most were at the 10 year mark.....it depends on the person.....be active......

 

[Mr. H.]

I too missed the "career boat".

I will never be able to retire (unless I win the lottery), and I will die penniless.

But by God I'm determined to die happy.

You will likely live much longer and live happily. When people retire, they tend to die. Retirement is boring.

thats bull....i knew lots retires at a complex i delivered mail too that were retired longer than they worked......most were at the 10 year mark.....it depends on the person.....be active......

Yeah, good point. My uncle lived into his 80's and swam laps every day at the retire-o-rama down in Florida. Hell, he won a men's swim suit contest in his late-60's LOL.

 

[hipeter924]

Keeps her health insurance which costs her $100/month.

That's cheap. All the healthcare plans under 'Obamacare' or the ACA here in Maryland cost at least $110-150 with high deductibles. There was all this rubbish about the Affordable Care Act making healthcare 'affordable', but the poor are still priced out of adequate healthcare.

 

[Dont Taz Me Bro]

This thread is in the Clean Debate Zone and it's not about Jake's sex life or his religious beliefs so everybody STFU and get back on topic, capisce?

This has been a public service announcement. Thank you.

 

[Carla_Danger]

Keeps her health insurance which costs her $100/month.

That's cheap. All the healthcare plans under 'Obamacare' or the ACA here in Maryland cost at least $110-150 with high deductibles. There was all this rubbish about the Affordable Care Act making healthcare 'affordable', but the poor are still priced out of adequate healthcare.

I agree. Universal health care would be much better.

 

[jwoodie]

That's pretty much correct. They also have their TSP (Thrift Savings Plan) with a 5% government match up to a certain point, I don't have my charts in front of me. And FERS get Social Security. Good health plan, too, and good survivor benefits.

28 years, she's probably set up pretty well, lifetime benefits.

Better overall package than most accountants get in the private sector, by a long shot.

.

You would think it would cause people to flock to Federal service

I don't know what the openings/applicants ratio is, that would be an interesting comparison.

We used to BEG for applicants

Most would look at the salary and laugh. Trying to explain how good the retirement package was fell on deaf ears

Now the quality of the employee is down and the costs have skyrocketed. Try to explain that.

I would beg to differ

I find the quality of federal employees to be much higher than they were 20 years ago. Keep in mind, a major portion of federal employees are professionals...... lawyers, engineers, accountants,doctors. 20 years ago these professionals laughed at the idea that they would sink to being a lowly federal employee
But then they were burned by massive layoffs and their promised retirement evaporated. They understand the benefits of job security and pension and health benefits

We get much better employees now

How big is that "major portion?" Ten percent? It is probably true that, since the recession, the applicant group for these professional positions has increased. However, the vast majority of the federal workforce are paid much more and produce much less than similarly qualified persons in the private sector. I've been there. I know it and so does anyone else who is not trying to hoodwink the public.

For example, much has been made of the seemingly paltry Federal Retirement System (FERS). Of course, what is NOT mentioned is the federally funded "annuity benefit" which effectively DOUBLES the FERS calculation. This scheme was cooked up to "replace" the extravagant 2% per year calculation that the public was finally waking up to, but it does the same thing.

 

[rightwinger]

You would think it would cause people to flock to Federal service

I don't know what the openings/applicants ratio is, that would be an interesting comparison.

We used to BEG for applicants

Most would look at the salary and laugh. Trying to explain how good the retirement package was fell on deaf ears

Now the quality of the employee is down and the costs have skyrocketed. Try to explain that.

I would beg to differ

I find the quality of federal employees to be much higher than they were 20 years ago. Keep in mind, a major portion of federal employees are professionals...... lawyers, engineers, accountants,doctors. 20 years ago these professionals laughed at the idea that they would sink to being a lowly federal employee
But then they were burned by massive layoffs and their promised retirement evaporated. They understand the benefits of job security and pension and health benefits

We get much better employees now

How big is that "major portion?" Ten percent? It is probably true that, since the recession, the applicant group for these professional positions has increased. However, the vast majority of the federal workforce are paid much more and produce much less than similarly qualified persons in the private sector. I've been there. I know it and so does anyone else who is not trying to hoodwink the public.

For example, much has been made of the seemingly paltry Federal Retirement System (FERS). Of course, what is NOT mentioned is the federally funded "annuity benefit" which effectively DOUBLES the FERS calculation. This scheme was cooked up to "replace" the extravagant 2% per year calculation that the public was finally waking up to, but it does the same thing.

Over 25% have masters degrees or higher. A much higher percentage than you will find in the private sector. Compared on a job by job basis rather than overall averages, the average federal employee makes less

The Highly Educated Federal Workforce in Two Charts - Pay Benefits - GovExec.com

FERS is a great system. The private sector should emulate it. There is no annuity benefit. There is the one percent FERS, Social Security and Thrift Savings (401k)

 

[theHawk]

I went to dinner last night with distant relative who I found out is a retired IRS agent.

Worked 28 years as an accountant for the IRS.

Retired at age 52 with 90% of her pre-retirement pay. Keeps her health insurance which costs her $100/month.

I don't know exactly how much in actual dollars that is, but she lives very well. Her only other source of income is child support for her one child.

During the dinner conversation she said why she chose being an accountant, specifically a government accountant, over being a nurse (which she wanted to become in high school)...she said she didn't like working nights or weekends or holidays, and the "stress of life-or-death" situations would have been too much for her.

I'm sitting there listening to her thinking THIS is why a few of us pay so damn much in taxes.

I did twenty years in the military, most of it as an operator where I busted the hell out of myself. I got 50% of my BASE PAY as retirement (which was only about half of what I made monthly in the military due to various "allowances" that do not factor into retirement), which means I really get about 25% of my entire pay as retirement.

I went back to school and now I practice emergency medicine, where I work about every third weekend, and frequently work nights. I won't be able to actually "retire" until I'm probably 80.

Our government is broken....

Your relative is a liar. There is no way she gets 90% of her then income, especially if she retired early.

So, don't get that upset.

A retired military paycheck isn't meant to fully support you. Most people retire from the military at around age 40, assuming they came in around 20 years of age. That means you've got 20 more years of work in another sector, all while you collect that "little" retirement check. You knew what the military pay and retirement system was when you were in it, so you can't complain about it now.

 

[jwoodie]

Instead of obfuscating federal retirement benefits, let's consider California PERS:

Regular employees: 2% per year at age 55 plus lifetime health insurance.

Health & Safety employees: 3% per year* at age 50 plus lifetime health insurance. (*limited to 90%)

 

[jwoodie]

I went to dinner last night with distant relative who I found out is a retired IRS agent.

Worked 28 years as an accountant for the IRS.

Retired at age 52 with 90% of her pre-retirement pay. Keeps her health insurance which costs her $100/month.

I don't know exactly how much in actual dollars that is, but she lives very well. Her only other source of income is child support for her one child.

During the dinner conversation she said why she chose being an accountant, specifically a government accountant, over being a nurse (which she wanted to become in high school)...she said she didn't like working nights or weekends or holidays, and the "stress of life-or-death" situations would have been too much for her.

I'm sitting there listening to her thinking THIS is why a few of us pay so damn much in taxes.

I did twenty years in the military, most of it as an operator where I busted the hell out of myself. I got 50% of my BASE PAY as retirement (which was only about half of what I made monthly in the military due to various "allowances" that do not factor into retirement), which means I really get about 25% of my entire pay as retirement.

I went back to school and now I practice emergency medicine, where I work about every third weekend, and frequently work nights. I won't be able to actually "retire" until I'm probably 80.

Our government is broken....

Your relative is a liar. There is no way she gets 90% of her then income, especially if she retired early.

So, don't get that upset.

A retired military paycheck isn't meant to fully support you. Most people retire from the military at around age 40, assuming they came in around 20 years of age. That means you've got 20 rmore years of work in another sector, all while you collect that "little" retirement check. You knew what the military pay and retirement system was when you were in it, so you can't complain about it now.

No one complains that military retirement pay is too high. However, many government employers allow former military to count their years towards civilian retirement as well (i.e., double dipping). It is hard to get an honest answer about government retirement benefits unless you can look it up some site like transparentcalifornia.

 

[rightwinger]

Instead of obfuscating federal retirement benefits, let's consider California PERS:

Regular employees: 2% per year at age 55 plus lifetime health insurance.

Health & Safety employees: 3% per year* at age 50 plus lifetime health insurance. (*limited to 90%)

This thread is about the IRS which falls under Federal employment regulation
If those were the terms of employment for California workers, then they earned them

 

[Rotagilla]

I went to dinner last night with distant relative who I found out is a retired IRS agent.

Worked 28 years as an accountant for the IRS.

Retired at age 52 with 90% of her pre-retirement pay. Keeps her health insurance which costs her $100/month.

I don't know exactly how much in actual dollars that is, but she lives very well. Her only other source of income is child support for her one child.

During the dinner conversation she said why she chose being an accountant, specifically a government accountant, over being a nurse (which she wanted to become in high school)...she said she didn't like working nights or weekends or holidays, and the "stress of life-or-death" situations would have been too much for her.

I'm sitting there listening to her thinking THIS is why a few of us pay so damn much in taxes.

I did twenty years in the military, most of it as an operator where I busted the hell out of myself. I got 50% of my BASE PAY as retirement (which was only about half of what I made monthly in the military due to various "allowances" that do not factor into retirement), which means I really get about 25% of my entire pay as retirement.

I went back to school and now I practice emergency medicine, where I work about every third weekend, and frequently work nights. I won't be able to actually "retire" until I'm probably 80.

Our government is broken....

...and she picked up the check and, since you discussed the IRS with her, she can write the lunch off as a "business consultation".