PAY:
Congress is the Federal Employee Retirement System (FERS).
The receive:
- Average of High Three Earngins years.
- Earn 1% per year of employment.
- Multiply the average of the earnings by the percentage derived from years.
[($174,000 * ) / 100 ] * 5% = X
[($174,000 * ) / 100 ] * 0.05 = $8,700
She will be able to receive $8,700 a year starting at age 62, which is about 11 years in the future.
HEALTH INSURANCE:
FERS retirees are eligible for Health Insurance if they have 5-years of service and the retirement annuity begins within 30 days. Since her retirement annuity will not start for 11 years, she wouldn't be eligible for continued coverage under FERS.
THRIFT SAVINGS PLAN:
FERS eligible people all receive the same benefit. Contribution equal to 1% of base pay plus up to a maximum of 4% addtitional to match the members own contributions. 5% as we saw above happens to be $8,700 maximum per year. We have no idea if she's been making a contribution.
WW
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Thrift Savings Plans are retirement plans for federal employees and uniformed service members. Here's a look at how they work and what the contribution limits are.
www.kiplinger.com