Your Social Security Supplement could be a major portion of your retirement. I have included some tidbits from a guide I use for your information.
OPM will calculate the RAS with their own complicated method, but this estimate will get you very close. For many folks, the amount they receive ends up being around $11,000 - $13,000 annually, but you can perform your own estimate using your annual statement from the SSA. For example, if you retire under FERS with 25 years of service, your RAS would be approximately 25/40ths of your computed SSA benefit at age 62, as listed on your statement.
Hopefully, running through a calculation example will be helpful. Let's calculate my estimated RAS using my retirement date of December 13, 2013. I had 21 years and 3 months of service credit. Since OPM only uses whole years of service in the RAS Calculation; I used 21 years. The next step is to divide my years of service by 40, or 21/40 = 52.50%. When you are estimating service years, do not include unused sick leave.
The next step is to login to the Social Security Administration's website and print out a copy of your benefit statement. My 2013 benefit statement shows my expected benefit at age 62 is $1,781 a month. 52.50% of $1,781 is $935 per month. This is by no means intended to be a calculation tool; this is a tool for estimating your RAS benefit. Generally, this method will get you within $100 a month above or below your actual monthly RAS. My actual OPM-awarded RAS is $940 per month, a difference of only $5 using this tool. Once computed and awarded by OPM, the dollar amount of the RAS will never change.
Why would eliminating the Social Security supplement for FERS retirees, make it financially impossible to retire until at least age 62? I wouldn't think that would be that big a dealFrom: "sarah_oz@yahoo.com [TSP_Strategy]" <TSP_Strategy@yahoogroups.com>
To: "TSP Strategy" <TSP_Strategy@yahoogroups.com>
Sent: Friday, April 15, 2016 6:32:31 AM
Subject: [TSP_Strategy] Cover Your AssetsSummer warning: Protect your skin, especially cover your assets
By Mike Causey | @mcauseyWFED
April 15, 2016 1:00 am
It will soon be summertime in an election year. That's a red zone for members of the federal family. Long-time feds know that some of the catch-up exercises that Congress plays in presidential years are a time of maximum danger for active and retired G-men and women. Everything from federal pay and pensions to new work rules and investment options may be on the table. And ready to be sliced and diced. So what's on the chopping block?
- Two proposed MAJOR changes in the FERS retirement program.
- A cut in the interest rate of G-fund where about half of all federal-postal-retiree Thrift Savings Plan investors have their retirement nest egg parked.
- Eliminating the Social Security supplement for FERS retirees, making it financially impossible for them to retire until at least age 62. For many much later.
- An overhaul of how the Defense Department evaluates and rewards (or punishes) Army, Navy, Air Force and Marine Corps civilian workers. If that takes off, other agencies would like to adopt it, or something like it.
- Big changes at the VA to enable (force) it to crack down on senior executives who allow, condone or OK things like the medical records-keeping scandal where books were cooked to make it appear that vets got speedy treatment, when some went months without getting any help.
Some are part of the House GOP budget. While it is in no way a done deal, it could happen.
Why are the red flag warnings being posted? Good question:
In election years politicians — not necessarily the most stable members of society in normal times — go nutz. With a "z". Men and women who have made (or wish to make) careers running against Washington and it's inside-the-Beltway mentality spend thousands of hours and millions of dollars so they can return to a low six-figure job in a city and situation they profess to loath. The purpose of the I-hate-Washington campaigns is to ensure the incumbents return for another two or six years, or give newcomers a chance to come here and hate it too.
While much of the campaign is showbiz and PR, there can be collateral damage. Often times the collateral is you. Your jobs. Your pay. Your pension. This year, maybe, even your retirement investment options
Many politicians — who spend hours each day fund-raising by phone — are also away from their desks and duties on extended recesses. Especially in election years, and especially in presidential election years. Like now.
After several extended paid vacations already in 2016, the plan is for Congress to take about three weeks off in the next several months, then recess shortly after Independence Day and return sometime after Labor Day. That's like a summer camp on steroids.
Feds tend to fare best when Congress is away. It's been years since politicians gave them any improvements in benefits. Now the pattern — from both parties — is to mostly ignore feds or whack them from time to time, with paid vacations already this year. How would you like a break for three of the next 14 weeks, then have a break from your previous breaks lasting from most of July through September? With time out Labor Day, of course.
Regardless of which party controls the new (2017) House and Senate, and regardless of who the 45th president is, the morning after could be a dangerous time for feds. Postal workers and retirees. Lots of people have seen these storms brewing earlier in their careers. Some have seen them come and go, mostly without any major damage to pay or benefits. But things seemed to have changed and the ugliness we've all seen (both sides) on the campaign could make this fall/winter when lots of people — especially those in the fed family — wake up with the mother of all hangovers.
Posted by: Bill Holzworth <holzworth.bill@gmail.com>
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