Are you sure of the 9*2% calculation? Based on https://www.opm.gov/retirement-services/csrs-information/computation, I think you get 5*1.5% + 4*1.75% = 14.5%, not 18%.
You mention you "think of that as a 10% bonus" but it makes more sense to think of it in the context of your overall annuity in which case, it's lower than 10%. More like 3.3/(14.5+33) = 7%. Still very significant, of course.
But since you earlier said that you would stay an extra 2 years for the 7% jump at 62, I'm curious if you now feel obliged to stay even longer to make up the 18-14.5 difference you were expecting or you'll be happy with your payout at 62. (I'm guessing that you must have a helluva TSP by now and it's really the enjoyment of your job, not the 7% increase that will truly keep you there for another 2 years.)
As another data point for others, I'm 3 years away from 62 and am coming to the realization that life is too short and there are so many other things I want to do instead. My 10% FERS bonus works out to 4% on my entire annuity and, for me anyway, it's just not worth giving up 3 years of my life for 4%.
Don
> On Oct 7, 2016, at 11:07 AM, JM Bud jmbud2@gmail.com wrote:
> That's right, Dan. The age 62 bonus on FERS annuity is 1.1%. Even one day short of age 62 it's 1%. I think of that as a 10% bonus for crossing the finish line!
>
> At that point, I'll have 33 years in FERS and 9 in CSRS. So unless I'm mistaken that will be 33 x 1.1% = 36.3% of my high 3 salary for life instead of 33%. Plus I believe I'll get 9 x 2% = 18% of my high 3 from CSRS years.That mix and the TSP match all these years has turned out well for me.
>
> Jim
>
> On Fri, Oct 7, 2016 at 10:03 AM, Dan danbev6462@yahoo.com wrote:
> JM u stated a 10% lifetime bonus? Are u referring to the jump from 1% to 1.1% at 62? And what do you mean 3.3% annuity increase?
>
>> From: JM Bud jmbud2@gmail.com
>> I agree. I'm staying two more years until I reach 62 to take the 10% FERS lifetime bonus on the FERS, With 42 years of service at that point, the ~3.3% increased annuity is worth far more to me than taking the FERS supplement now.
>>
>> I'm fortunate though that I really enjoy my position at NASA and the people I work with. Sadly, that's not the case for some civil servants. Everyone's situation is different. The supplement can be a lifeline to get a jump on a new phase of life. You can't always put a price on that.
>>
>> Jim
>>
>> On Fri, Oct 7, 2016 at 8:52 AM, barbs miandsh2000@yahoo.com wrote:
>> given the no-COLA on the FERS supp and FERS retirement, anyone already weighed the pros/cons of sticking it out until 62 versus going at MRA?
>> 10% alone in the FERS supp seems like alot to forego for another 5.5 yrs.
Posted by: Don Libes <don@libes.com>
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