- Dec 17, 2009
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Can you share the link with us please. Thanks.
You forgot FERS. That is in addition to SS. It is 1% of the average of your high three earning years x the number of years you have worked. For over 10 or 20 years of employment, I don't recall which, there is a multiplier of 1.5%. SS may be just that, but FERS considerably increases their retirement pay. AND they can put money into what is called the Thrift Savings Plan. The government matches the first 2% of their salary dollar for dollar and the next 1% 50c on the dollar. Who else do you know who is getting 100% interest on their investments? Or even 50%? At retirement they can roll this over into an IRA or use it to purchase an annuity. And they get their health insurance for what the federal employees pay which is considerably lower than any medigap insurance out there.
FERS Computation
Thrift Savings Plan (TSP)
Insurance Benefits
Basically, there is a three tiered retirement plan. Social Security, FERS and TSP
FERS is like you say (and I posted earlier ) one percent of your high three salary for every year. In my example that would be around $34,000 after twenty years . You contribute 1.3% of your salary above what you pay into SS
TSP is identical to a 401K. You contribute into it and receive matching contributions on up to 5% of your salary ( around $6000 a year)
No different than anyone else who works for the Federal Government.
No, they take 1% of your salary every year for FERS. The average of the high 3 thing is how your benefit is figured. You can turn your "identical to a 401K" into an annuity by using it to purchase one. I posted the OPM websites. You can't really read can you.