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[TSPStrategy] Figuring out the ‘Fork in the Road’

https://www.govexec.com/pay-benefits/2025/01/figuring-out-fork-road/402616/?oref=govexec_today_nl&utm_source=Sailthru&utm_medium=email&utm_campaign=GovExec%20Today:%20Jan.%2031%2C%202025&utm_term=newsletter_ge_today

Figuring out the 'Fork in the Road'

The Trump administration's "deferred resignation" offer has federal employees scrambling for answers and facing tough choices.

January 30, 2025 03:00 PM ET

Tammy Flanagan

Retirement Counseling and Training www.retirefederal.com

As the entire federal community reels from the recent email sent from the Office of Personnel Management offering employees a "deferred resignation," there is so much to figure out and so many questions that need answers. It's time to start separating the known from the unknown in hopes of finding clarity with this latest directive.

What is known:

1. Jan. 27: Return to Office Implementation Plan: The Office of Management and Budget and Office of Personnel Management issued this memorandum to provide further guidance to agencies on implementation of the Jan. 20, 2025, "Return to In-Person Work," presidential memo.

2. Jan. 28: Federal workers received an email reportedly from OPM, offering a "deferred resignation" offer with an acceptance deadline of Feb. 6. At first workers questioned whether this was spam and not a "real" email. Even the title of the memo, Fork in the Road, sounded a little suspect and not at all like an official government document.

What is not known:

There is much that isn't clear to the federal workforce as this unprecedented action is being parsed, but here are a few things that need to be confirmed before accepting an offer that you may come to regret:

1. Will this be processed as a Voluntary Early Retirement Authority- type of event? The memo stated: "I also understand that if I am (or become) eligible for early or normal retirement before my resignation date, that I retain the right to elect early or normal retirement (once eligible) at any point prior to my resignation date." Under a VERA, employees can apply for early retirement at age 50 with 20 or more years of service or at any age with 25 years of service. They are entitled to an immediate, unreduced retirement with continuation of federal insurance benefits (if they meet the requirements of being covered by FEHB and FEGLI for the five years preceding their retirement date). They are entitled to a FERS supplement at their Minimum Retirement Age and may continue to age 62 with an annual earnings limit.

2. Will salaries continue to be paid through Sept. 30 for those who "resign" by Feb. 6. According to its fact sheet on administrative leave, OPM does not regulate the use of administrative leave. This authority rests with each agency head. Comptroller General decisions suggest that approval for administrative leave should generally be limited to situations involving brief absences.

3. Will the salaries paid during the "deferred resignation" be subject to all normal payroll withholdings for FICA, Medicare, TSP, retirement (CSRS or FERS), etc.?

4. Will employees accrue additional leave during this period of non-work?

5. How many employees will accept this offer? Government Executive senior correspondents Erich Wagner and Eric Katz reported earlier this week that, "by Tuesday morning, a consensus had emerged among unions and other federal employee associations: Don't take the deal. Between the questionable legal authority to grant deferred resignations, a lack of guarantee that an employees' resignation will be accepted and that their pay and benefits will actually continue, and Elon Musk's involvement and past history with mass resignation efforts, feds should be wary, they said." Even if a small percentage of employees accept the offer or choose to retire during this time, will there be adequate personnel at the HR and OPM agency personnel to process retirements that will need to be adjudicated because of this action?

What you can do now:

1. Listen to your HR office for guidance that may be provided in the coming days. According to the email, "once your resignation is validly sent and received, the human resources department of your employing agency will contact you to complete additional documentation, if any." It's the "if any" that is concerning.

2. If you are a member of an employee union group or other group that represents federal employees, listen closely to any action they may be taking. If you're not a member, why not? There are more than 70 groups to consider and some of the largest are voicing opinions on this news, including the Federal Employee Education & Assistance Fund, the American Federation of Government Employees, Blacks in Government and the National Active and Retired Federal Employees Association.

3. Hope for the best but be prepared for the worst is the best you can do at this time. In preparation for some type of early out offer, I wrote two columns recently to help you prioritize what you can do now if you decide to retire sooner than you may have planned: Tips to prepare for the future of your federal career and How to prepare for an unexpected retirement.

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[TSPStrategy] Tips to prepare for the future of your federal career

https://www.govexec.com/pay-benefits/2025/01/tips-prepare-future-your-federal-career/402448/?oref=govexec_today_nl&utm_source=Sailthru&utm_medium=email&utm_campaign=GovExec%20Today:%20Jan.%2024%2C%202025&utm_term=newsletter_ge_today

Tips to prepare for the future of your federal career

Keep calm, and keep good records.

January 23, 2025 03:00 PM ET

Tammy Flanagan

Retirement Counseling and Training www.retirefederal.com

An executive order signed on Monday by President Trump officially set up his non-governmental efficiency commission Department of Government Efficiency, led by billionaire Elon Musk, and charged with "modernizing federal technology and software to maximize governmental efficiency and productivity."

This order does not mention Musk's previously stated goals to roll back government headcount, spending and regulations nor what President Trump initially said DOGE would do: "dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies," but those words were not forgotten by federal workers. This Day 1 action, along with other executive orders and speeches presented that target the end of telework, changes to retirement benefits, and the end of federal agencies such as the IRS and Education Department, have federal workers on high alert.

It is a good idea for federal employees to prepare for the worst by getting their retirement "ducks in a row" if these threats start to become reality. Although there may be changes ahead, it is best not to move into panic mode and let your emotions overtake rational behavior.

It is, however, a good idea to be prepared for the "what-if" situations of a possible early retirement offer, severance pay eligibility, and the ability to retire comfortably or the need to change gears and complete your career outside of federal employment. It will take time to implement changes, and not all changes will become the harsh reality that many fear. After all, some of these changes have resurfaced from the first Trump administration (and other administrations as well) as I wrote about in a 2017 "Retirement Planning" column, when the president's budget contained the following provisions:

Cost-of-living allowances for current and future FERS retirees would be eliminated altogether.
COLAs for CSRS retirees would be reduced by 0.5% each year from what they would have been otherwise.
FERS employees would see employee contributions to their annuities increase by 1% each year for the next six years, without any corresponding benefit increase.
The FERS annuity supplement would be eliminated for new retirees starting in 2018. That change would save the federal government $5 billion by 2026.
Federal pensions would be based on the average of the highest five years of salary instead of the highest three. According to the Congressional Budget Office estimates, that change would save the federal government $2 billion from 2018 to 2026.

So far, none of these proposals have taken effect, however, they have resurfaced and could affect future benefits. So, what to do now? Here are three tips that may help you prepare for whatever reality is going to bring:

Keep copies of everything

The Office of Personnel Management provides agencies with guidance for submitting "healthy" retirement application packages.

You should use it as a guide, too. Once you have completed and signed your retirement forms, (SF 3107 for FERS and SF 2801 for CSRS f) make a copy for your records. These could include your retirement application, continuation of life insurance (SF 2818) and for CSRS employees, Voluntary Contributions forms (SF 2804) and (RI 38-124). If you are not eligible for an immediate retirement, review the application for a deferred or postponed retirement (RI 92-19).

You should also maintain copies of the records of your federal employment and the benefits you will be continuing in retirement. Once you are off the rolls of your agency, you will lose access to your electronic Official Personnel Folder. If possible, make a copy of the entire folder, but if that isn't an option, be sure to keep personnel action statements that showg jobs, retirement coverage and salary changes, designation of beneficiary forms, and records of health and life insurance coverage, especially those that document the five years of coverage necessary to carry health insurance into retirement.

Make it easy for OPM

We've all heard stories of retirements that take many months to process. Your retirement forms are all fillable forms and can be completed online and then printed out and signed. Become familiar with OPM's policy regarding accepting electronic signatures for many of the forms needed for retirement. OPM will consider these electronic signatures as effective for purposes of processing, if the electronic signatures meet the requirements listed in the guidance provided to agency benefits officers in a 2022 Benefits Administration Letter.

Although not recommended, you can fill out the forms by hand, but make sure you print legibly with a black ink pen. OPM will not accept corrections (such as scratch-outs, white-outs or lineouts) in most sections of the retirement applications.

When you submit your application, be sure to include the documentation that OPM is asking for, including military service records, a copy of your marriage certificate (if applicable), any court orders that might affect the distribution of your annuity and form W-4P indicating your federal income tax withholding. Gather these documents now, so that they are available when you decide it is time to apply for your benefits.

Prepare for the worst and hope for the best

Be sure to have enough cash reserves on hand so that you can manage your finances when there are delays in processing your annual leave lump sum payout, your first retirement checks and initial distributions from your Thrift Savings Plan account. A good rule of thumb is to be prepared to cover your living expenses with cash on hand for a few months. It's possible you'll make mistakes in a process that is probably unfamiliar to you. Many federal employees are no longer provided one-on-one retirement counseling, which may leave you on your own to navigate the requirements and to consider the pros and cons of your retirement decisions. If your agency provides individual retirement counseling or pre-retirement training, be sure to take advantage of this valuable service - you will learn something new, especially when you ask questions. Here are some resources to get you started:

Governmentwide, approximately 85% of retirement claims submitted by federal agencies are "healthy" and don't need further documentation, but that leaves an average of 15% of cases that suffer delays due to missing, inconsistent or inaccurate information.

As you face uncertainty, evaluate your options and your retirement preparedness. Make changes, if necessary, and continue to do your government work in the dedicated and hard-working manner you have always provided. Many Americans are depending on you. Whether they are applying for Social Security, waiting for an important piece of mail, planning a visit to one of our historic and beautiful National Parks, or enjoying the freedoms and protections provided by our Defense and Homeland Security departments. After all, even our president is a "bureaucrat."

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Cotton Canvas: A Comprehensive Guide for Crafters, DIYers, and Textile Enthusiasts

Cotton canvas: the workhorse of the crafting and DIY world. From sturdy tote bags to breathtaking painted artworks, its versatility and durability have made it a staple in workshops and studios for centuries. But beyond its readily apparent applications, cotton canvas holds a wealth of fascinating characteristics and possibilities. This comprehensive guide delves deep into the world of cotton canvas, exploring its properties, uses, types, history, and more, all tailored for the discerning crafter, DIY enthusiast, and textile aficionado.

What is Cotton Canvas? A Material Defined by Weave and Fiber

At its core, cotton canvas is a plain-woven fabric made from cotton fibers. The term "canvas" refers specifically to the weave – a tightly interlaced, balanced weave that provides inherent strength and stability. The combination of the natural cotton fiber and the plain weave structure gives canvas its unique properties:

Durability: The tight weave creates a strong fabric that can withstand significant wear and tear, making it ideal for projects that need to last.
Absorbency: Cotton is a naturally absorbent fiber, allowing canvas to readily accept dyes, paints, and other finishes. This is critical for customization in crafting and artistic applications.
Versatility: Canvas comes in various weights, textures, and finishes, making it suitable for a wide range of projects, from lightweight apparel to heavy-duty outdoor gear.
Breathability: Cotton fibers allow air to circulate through the fabric, making canvas comfortable to wear and use in warm environments.
Affordability: Compared to other durable fabrics like linen or leather, cotton canvas is relatively inexpensive, making it accessible for crafters on a budget.
Ease of Use: Cotton canvas is generally easy to cut, sew, and manipulate, making it a forgiving material for beginner and experienced crafters alike.

Unraveling the Weave: Understanding Canvas Construction

The strength and properties of cotton canvas are largely determined by its construction:

Weave Type: The most common weave for canvas is the plain weave, where warp (lengthwise) and weft (crosswise) yarns interlace in a simple over-under pattern. Other weaves, like twill, can also be used, resulting in a more textured and potentially more durable canvas.
Yarn Size (Weight): Canvas weight is typically measured in ounces per square yard (oz/yd²). Heavier canvases (e.g., 12 oz, 18 oz) are thicker, stronger, and more rigid, suitable for heavy-duty applications. Lighter canvases (e.g., 7 oz, 10 oz) are more pliable and suitable for garments or lining.
Thread Count: While less commonly specified for canvas than for other fabrics, thread count (number of threads per inch) can also influence the fabric's density and durability. A higher thread count generally indicates a tighter weave and greater resistance to tearing.
Ply: Refers to the number of yarns twisted together to make a single thread. Multiple-ply yarns create a stronger and more durable fabric.

Canvas Varieties: Exploring the Spectrum of Textures and Finishes

Cotton canvas isn't a monolithic material. A wide range of varieties cater to specific needs and applications:

Duck Canvas: The most common type of cotton canvas, characterized by its tightly woven plain weave. Duck canvas is graded by a numbered system (e.g., #8 duck, #10 duck), with lower numbers indicating heavier weights. It is incredibly versatile and used for everything from tote bags and upholstery to tarpaulins and tents.
Artist Canvas: Specifically designed for painting, artist canvas is typically primed with gesso to create a smooth, absorbent surface that is ready to accept paint. Available in various weights and textures, it is often stretched over a wooden frame for painting.
Cotton Drill: A strong, twill-woven fabric that is similar to canvas but generally lighter in weight. Drill is often used for workwear, linings, and durable clothing.
Cotton Twill: As mentioned, a twill weave creates a diagonal rib pattern on the fabric's surface. Twill canvas is often more flexible and drapable than plain-weave canvas.
Water-Resistant Canvas: Treated with a water-repellent finish (e.g., wax, silicone), this type of canvas is ideal for outdoor applications like awnings, boat covers, and tents. The water-repellency needs to be maintained with retreatment over time.
Flame-Retardant Canvas: Treated with flame-retardant chemicals, this canvas is suitable for applications where fire safety is a concern, such as stage curtains, backdrops, and safety clothing.
Organic Cotton Canvas: Made from cotton grown without the use of synthetic pesticides or fertilizers. This is a more sustainable option for environmentally conscious crafters.
Recycled Cotton Canvas: Made from recycled cotton fibers, reducing waste and conserving resources.

Beyond the Bolt: Common Uses for Cotton Canvas

The versatility of cotton canvas makes it a go-to material for a vast array of projects:

Crafting & Sewing: Tote bags, pouches, aprons, placemats, curtains, pillow covers, wall hangings, stuffed animals.
Art & Painting: Painting canvases, backdrops, murals.
Home Decor: Upholstery, slipcovers, curtains, rugs, storage bins.
Outdoor Gear: Tents, awnings, boat covers, backpacks, tarpaulins.
Apparel: Jackets, pants, skirts, dresses, hats, workwear.
Shoes: Canvas sneakers, espadrilles.
Photography & Event Decor: Photography backdrops, pipe and drape systems for booths and events.

Choosing the Right Canvas: A Project-Specific Guide

Selecting the appropriate canvas for your project is crucial for achieving the desired results:

For Tote Bags: A medium-weight duck canvas (10-12 oz) is a good balance of durability and ease of sewing. Consider a heavier weight (14-18 oz) for bags that will carry heavy loads.
For Painting: Artist canvas primed with gesso is essential. Choose a weight and texture based on your painting style. Finer textures are good for detailed work, while coarser textures are suitable for looser styles.
For Upholstery: A heavy-weight duck canvas (12-18 oz) or a cotton drill is recommended for durability. Consider a stain-resistant finish for added protection.
For Clothing: A lighter-weight canvas (7-10 oz) or a cotton twill will be more comfortable to wear.
For Outdoor Projects: A water-resistant canvas is a must. Consider the level of water resistance needed based on the project's exposure to the elements.
For Photography Backdrops: Muslin is also used for backdrops, however cotton canvas in a plain color or painted canvas can add character and is generally durable. Using pipe and drape to set up the photography backdrops can be an efficient means.

Working with Cotton Canvas: Tips and Techniques for Crafters

While generally easy to work with, cotton canvas benefits from a few key techniques:

Pre-Washing: Pre-wash canvas before cutting and sewing to prevent shrinkage after the project is complete.
Needle Selection: Use a universal or denim needle in your sewing machine. The size of the needle will depend on the weight of the canvas.
Thread Choice: Choose a strong, durable thread like polyester or cotton-wrapped polyester.
Seam Finishes: Finish raw edges to prevent fraying. Options include serging, zigzag stitching, or binding with bias tape.
Reinforcements: Reinforce stress points with extra stitching or rivets.
Cutting: Use sharp fabric scissors or a rotary cutter for clean, accurate cuts.
Pressing: Press seams open after sewing for a professional finish.
Painting & Dyeing: Cotton canvas readily accepts paints and dyes. Experiment with different techniques to achieve the desired look. Use fabric paints or dyes that are designed for natural fibers.

Caring for Your Canvas Creations: Maintaining Longevity

Proper care will extend the life of your cotton canvas projects:

Washing: Machine wash in cold water on a gentle cycle. Avoid using harsh detergents or bleach.
Drying: Tumble dry on low heat or hang to dry. Avoid over-drying, which can cause shrinkage.
Ironing: Iron on a medium setting.
Storage: Store canvas projects in a cool, dry place away from direct sunlight.

A Historical Thread: The Evolution of Cotton Canvas

Canvas has a rich history, dating back centuries. Originally made from hemp or linen, canvas was used for sails, tents, and other essential items. The introduction of cotton canvas in the 19th century made the material more affordable and accessible, leading to its widespread adoption in various industries.

The Sustainability Question: Addressing Environmental Concerns

The environmental impact of cotton production is a growing concern. Conventional cotton farming relies heavily on pesticides and fertilizers, which can pollute waterways and harm ecosystems. Choosing organic or recycled cotton canvas is a more sustainable option. Consider also the dyes and finishes used on the canvas, opting for eco-friendly alternatives whenever possible.

The Future of Cotton Canvas: Innovation and Possibilities

The future of cotton canvas is bright, with ongoing innovations in textile technology. Researchers are exploring new ways to improve the performance and sustainability of canvas, including:

Developing more durable and water-resistant finishes.
Creating canvas from innovative blends of cotton and other fibers.
Improving the efficiency of cotton farming practices.
Exploring new applications for canvas in areas like construction and transportation.

Canvas Specific Project Ideas

For a craft and DIY blogger, cotton canvas offers a plethora of content opportunities. Here are some project ideas specifically tailored to your audience:

Personalized Photography Backdrops: Create unique, hand-painted backdrops for photoshoots using cotton canvas and acrylic paints.
Upcycled Canvas Tote Bags: Transform old canvas drop cloths or tents into stylish and functional tote bags.
DIY Canvas Wall Art: Create textured wall art using canvas scraps, fabric scraps, and mixed media techniques.
Canvas Storage Bins: Sew sturdy and stylish storage bins for organizing craft supplies or household items.
Custom Canvas Pet Beds: Design and sew comfortable and durable pet beds using heavy-weight cotton canvas.
Painted Canvas Shoes: Customize canvas shoes with fabric paint and unique designs.
Tutorials on different painting and dyeing techniques for canvas.
Reviews of different types of canvas and their suitability for various projects.
Posts on sustainable canvas options and eco-friendly crafting practices.

Resources for Cotton Canvas Enthusiasts:

Online fabric retailers: Many online retailers specialize in selling cotton canvas in various weights, colors, and finishes.
Local fabric stores: Support your local fabric stores by purchasing cotton canvas from them.
Art supply stores: Art supply stores carry artist canvas in various sizes and textures.
DIY and crafting websites: Numerous websites offer tutorials and inspiration for working with cotton canvas.
Textile museums and historical societies: Learn more about the history and evolution of canvas at textile museums and historical societies.

Conclusion

Cotton canvas is more than just a fabric; it is a versatile and enduring material that has played a significant role in crafting, art, and industry for centuries. By understanding its properties, varieties, and applications, crafters, DIY enthusiasts, and textile learners can unlock its full potential and create beautiful and functional projects that will last for years to come. As a craft blogger, embracing this material and sharing its nuances with your audience will position you as a trusted resource and inspire creativity for all. Remember to explore the possibilities and experiment with different techniques to find what works best for you and your unique creative vision! The key is to understand the material and apply your knowledge and creativity to create something amazing.

https://thefabricofourlives.com/cotton-fabrics/canvas
https://wellfabric.com/what-is-cotton-canvas-fabric/
https://sewport.com/fabrics-directory/canvas-fabric
https://www.cassart.co.uk/whats-the-difference-between-linen-and-cotton-canvas/
https://en.wikipedia.org/wiki/Canvas
https://www.fabrichouse.com/int/all-fabrics/cotton/cotton-canvas/https://thecanvaswiki.blogspot.com/

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[TSPStrategy] The Ways and Means Committee is considering some items that will directly affects federal employees AND retirees

-Raising FERS contribution rate to 4.4% for everyone, regardless of when you started
-Eliminate FERS Supplemental Retirement Payments
-Base FERS benefit on High-5 (instead of high-3)
-Push all new employees to At-Will FERS at 4.4%, or stay in current system but at a higher %
-Move FEHB to a voucher model
-Charge a fee for employee MSPB Appeals
Now is the time to reach out to your representatives and make your voices heard.
There are many other items from other categories that are equally disappointing. Full document can be found here:

https://www.politico.com/f/?id=00000194-74a8-d40a-ab9e-7fbc70940000

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[TSPStrategy] How to prepare for an unexpected retirement

For those interested.

https://www.govexec.com/pay-benefits/2025/01/preparing-unexpected-retirement/402246/?oref=govexec_today_nl&utm_source=Sailthru&utm_medium=email&utm_campaign=GovExec%20Today:%20Jan.%2017%2C%202025&utm_term=newsletter_ge_today

How to prepare for an unexpected retirement

Some readers with fears about the future of their jobs under the next administration reached out for advice.

January 16, 2025 03:00 PM ET

Tammy Flanagan

Retirement Counseling and Training www.retirefederal.com

Federal employees who are planning for retirement have a multitude of questions that need to be addressed so that they can prepare for a smooth transition and a financially secure life after retirement.

Today, I am going to share a question-and-answer session I recently had with an employee who is worried about her future employment due to the preparations being made to restructure the federal workforce under the new administration. She is worried, as are many others, about the resurgence of Schedule F potentially causing many federal jobs, and the employees who occupy those jobs, to be at risk.

The incoming administration has shown the desire to mandate significant reductions to the civilian federal workforce through layoffs, agency eliminations and office relocations. Adding to this, it seems that voluntary departures are being encouraged by legislation introduced in Congress requiring federal workers to return to the office and reduce teleworking. On Jan. 8, Rep. Dan Newhouse, R-Wash., introduced The Federal Employee Return to Work Act to crack down on what he calls "wasteful government spending" and to encourage federal employees to return to in-person work.

Based on recent emails that I've received; many federal employees are sharing similar concerns outlined by the employee in this article. Many have expressed fear about the ability to retire voluntarily and are preparing for the potential of massive government downsizing. Whether this happens, is yet to be seen, but I am always encouraged when employees plan for the "what-if" situations that can happen during a federal career.

Background: Things are getting crazy at my agency. I turn 62 on Sunday, so I'm just really starting to think about retirement. I'll always do something, just not sure what, so I have a lot to think about. I was hoping to find answers to some questions I have that will help me plan.

Question #1: What is the absolute best day to retire? Dec. 31 or Jan. 31 or any year? Or are neither of these good?

Answer: I have written many times about choosing the "best" retirement date. Before setting your date, be sure to do financial planning and tax planning to be sure that you can afford to retire. Consider the amount of retirement income that you will have net of taxes and any withholdings (such as taxes and insurance premiums) and reductions (such as survivor benefit elections, former spouse apportionments, part-time work schedule pro-ration, etc.). It is also important to begin to visualize your life after retirement. Once you are mentally and financially ready, then consider retiring at the end of a month so that you are paid your salary for the full month of your retirement and so that your first retirement benefit is for the entire amount of the first month following your retirement. Consider retirement at the end of the year, or specifically, the end of the "leave" year if you are attempting to maximize the lump sum annual leave payout. You can read the most recent articles on this subject:

Best Dates to Retire in 2025

Four Rules for Picking a Retirement Date

When to Leave to Maximize Your Lump Sum Annual Leave Payment

Retirement decisions that can't be reversed

Question #2: If you participate in the Flexible Spending Account (FSA) program and retire after January 1 or any given year, will your FSA continue? I know when I left a private sector job years ago, although I was gone, I received the full amount of my FSA, even after my payroll stopped. I'm not sure how the Federal government works.

Answer: The following can be found at www.fsafeds.gov and provides a clear answer to your question:

The balances in your Health Care FSA, Limited Expense Health Care FSA and Dependent Care FSA are treated differently if you separate or retire before the end of the calendar year.

Your HCFSA or LEX HCFSA will terminate as of the date of your separation or retirement. There are no extensions. Any eligible health care expenses incurred prior to the date of separation will still be reimbursed but those incurred after the separation date are not reimbursable, even if you accelerated your allotments. If you used your entire elected amount before FSAFEDS has deducted it from your pay, you will not be responsible for the remaining allotments.

Your DCFSA remaining balance can continue to be used to pay for eligible dependent care expenses until your account balance is depleted or the end of the calendar year, whichever comes first.

Please note: In order to take advantage of the grace period for your DCFSA, you must be actively employed and making allotments through Dec. 31 of the benefit period (plan year).

Example: A participant is enrolled in both a HCFSA and DCFSA for the benefit period but retires midway during the benefit year on July 1. The participant may only submit claims for health care expenses which are incurred prior to their July 1 separation date, but can continue to incur dependent care expenses through Dec. 31 of that benefit year or until their balance is depleted. The participant would not be eligible for the grace period under their DCFSA.

Question #3: I am due for my final step increase in June. Will that be calculated into my high three if I decide to leave on 12/31/25 or 1/31/25?

Answer: Each pay rate in effect during the high-three period (generally the last three years of your career), are pro-rated based on how many days it is in effect during the three-year period. For example, if you receive your step increase on June 15, 2025, and then retire on Dec. 31, 2025. That salary rate would be in effect for six months and 15 days of the three-year rating period or .541667 of a year out of 3.00 years It is three years, not three pay rates.

Question #4: There is an opening for a lower-grade federal job just a couple of miles from our house and I have seriously considered taking a part-time job there. Would it be possible or smart to do something like that? I have over 20 years of service and may consider reemployment after I retire or transfer if I apply and am subsequently hired.

Answer: If you were to transfer to this position from your current agency, your length of service would increase and retirement benefits would continue to accrue, however, remember that your lump sum annual leave payout and the value of your life insurance that you will continue into retirement is based on your salary rate on the date of retirement. It is likely that your high-three average salary would be "frozen" at the time of transfer because you are in a higher pay rate in your current position. If you retire and then get rehired into federal employment, you would be considered a reemployed annuitant subject to an offset to your new salary by the amount of your retirement. Here are more details about becoming a reemployed annuitant:

Facts about insurance coverage for reemployed annuitants

Chapter 100, Reemployed Annuitants, CSRS and FERS Handbook, beginning on page 38: As a general rule, hen an annuitant is reemployed, the annuity continues, and the amount of annuity that applies to the period of reemployment is offset from the reemployed annuitant's salary.

Question #5: For my TSP, I have just over $500k and I'm continuing to add the max to it. My financial adviser wants me to transfer it to him and let him manage it, but I'm terrified to do that. I don't know or understand the annuity stuff very well and feel stupid asking those questions as something I feel like I'm supposed to know.

Answer: Give yourself some grace. You have never retired before, let alone made decisions regarding taking distributions of your retirement savings. This is new territory and there are individuals out there who may profit from your retirement. Before making any decision regarding your retirement savings, it is important to educate yourself regarding the options you have, including transferring your balance to an IRA and hiring a financial professional to help manage your investment. It is important to know the difference between a financial advisor with a fiduciary responsibility to look out for your best interest versus a salesman interested in selling you a high-commission product (i.e. annuity). To learn more about distribution options and important tax information about TSP distributions, start with the following resources:

TSP Online Learning: Distributions

TSP Withdrawals in Retirement

TSP Booklet 25, Distributions

TSP Booklet 26, Tax Information About TSP Payments

To learn more about working with a financial professional, here is an abundance of important and user-friendly information for investors.This information is provided by FINRA, a self-regulatory organization for member broker-dealers that is responsible under federal law for supervising their member firms. FINRA has been around since the 1930s, under the oversight of the Securities and Exchange Commission.

Closing message: I'm doing my best to hang in there as long as I can, but again, just trying to understand what the absolute best thing for me is to do, whenever I do it, so if you wouldn't mind helping me understand, I'd be so very grateful. I'm sure there are things I haven't thought of, but this is a start.

Final response: Continue to ask questions and seek accurate answers and information to help you feel confident about your retirement plans. Please don't retire out of fear of what "might" happen. It is more important to have a plan to be prepared to retire financially secure from federal service unless you are planning to transition to other work in the private sector or to other state or local government work.

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Blog Archive

[TSPStrategy] Figuring out the ‘Fork in the Road’

Figuring out the 'Fork in the Road'

The Trump administration's "deferred resignation" offer has federal employees scrambling for answers and facing tough choices.

[TSPStrategy] Tips to prepare for the future of your federal career

Tips to prepare for the future of your federal career

Keep calm, and keep good records.

Cotton Canvas: A Comprehensive Guide for Crafters, DIYers, and Textile Enthusiasts

[TSPStrategy] The Ways and Means Committee is considering some items that will directly affects federal employees AND retirees

[TSPStrategy] How to prepare for an unexpected retirement

How to prepare for an unexpected retirement

Some readers with fears about the future of their jobs under the next administration reached out for advice.

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