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This course is designed for new employees with less than five years of federal service. It is intended to explain their federal retirement benefits as well as the importance of long term financial and tax planning for their eventual retirement. After attending this course, the participants will:
Have a full understanding of their federal benefits (FERS, FEHB, FEGLI, and Social Security/Medicare)
Know the eligibility requirements for the FLTCIP; types of care covered; benefit choices and general premium information.
Be able to comprehend the various types of retirements and the eligibility criteria governing each, know how to credit civilian and military service as well as how to compute the basic annuity benefits, including disability benefits as applicable.
Be able to describe the types of benefits payable to survivors of deceased federal employees under FERS.
Have an understanding of basic financial and tax planning, the usefulness of FSA’s, HSA’s and HRA’s, the vital role the TSP plays in individual federal retirement plans, investment options available, TSP interfund transfers, loans and withdrawals, the use of tax strategies and investing beyond the TSP to implement long term goals.
FERS RETIREMENT ELIGIBILITY
Minimum Retirement Age
Minimum Service Requirement
CREDITABLE CIVILIAN SERVICE
CREDITABLE MILITARY SERVICE
FACTORS AFFECTING ANNUITY COMPUTATION
High-3 average salary computation
Length of service
30-Day month factor table
COMPUTATION OF ANNUITY
Regular formula
Monthly annuity rate
FERS immediate annuity computation and charts
FERS supplemental benefits
Cost of living adjustments
EARLY RETIREMENT – REDUCED ANNUITY
Early voluntary retirement
Rules and considerations
Advantages and disadvantages
Applying for early retirement
Involuntary separation and voluntary “Early Out”
FERS DISABILITY RETIREMENT
Eligibility
Disability annuity computation
Re-computation at age 62
FERS DEPOSITS and RE-DEPOSITS (if applicable)
Re-deposit (Refund) service
Transfers to FERS
SURVIVOR BENEFITS
Survivor benefits upon the death of an employee
Survivor benefit payable to spouse or former spouse with court order
Survivor benefit when death occurs after separation from employment
Survivor benefit to person with insurable interest
Employee elects to provide for former spouse
Court awarded survivor annuity - requirements
Court awarded survivor annuity – effect on current spouse
Termination of marriage after retirement – effect on annuity
Annuitants who marry after retirement – elections available
Survivor benefits - children
Duration of children’s survivor benefits
Death benefits when no one is entitled to survivor benefits
Marriage duration requirement for survivor benefit eligibility
TAX COMPUTATION ON ANNUITY (SIMPLIFIED GENERAL RULE)
FINANCIAL AND TAX PLANNING and THE THRIFT SAVINGS PLAN
Establishing goals
Projecting future income
Tracking expenses, determining net worth and budgeting
Managing debt
How to establish savings targets to maximize savings/investments
Strategies for saving on your taxes
General rules and procedures
Investment options – The C, F, G, I, S and L funds
Interfund transfers within the TSP
TSP loans and In-service withdrawals
Post-Service withdrawal options, leaving money in the TSP, death benefits
Recent and forthcoming changes to the TSP
Investing beyond the TSP
FEDERAL EMPLOYEES GROUP LIFE INSURANCE PROGRAM (FEGLI)
- General coverage rules
- Basic life insurance and available options
- Payment of benefits – order of precedence
- Manner of payment – death benefits
FEDERAL EMPLOYEE HEALTH BENEFITS
- Eligibility and enrollment rules
- Pre-Tax payment of premiums
- Plan options, the Dental and Vision plans, FSAFEDS, HSA’s and HRA’s
FEDERAL LONG TERM CARE INSURANCE PROGRAM
- Eligibility and enrollment
- Benefit choices and types of care covered
- Premiums
OVERVIEW OF SOCIAL SECURITY and MEDICARE BENEFITS
Eligibility for Social Security benefits: How do you qualify?
Social Security earnings test
Medicare eligibility and cost
Medicare parts A, B and D – What do they cover?
Disability Social Security benefits
Survivor benefits
Auxiliary benefits
REQUESTING SOCIAL SECURITY BENEFIT ESTIMATE
GOVERNMENT PENSION OFFSET
SOCIAL SECURITY BENEFIT CALCULATION
ELIMINATION OF THE WINDFALL BENEFIT
- General Information
- Submission of application
- Receipt of first annuity check
- Direct deposit
GETTING ANSWERS TO RETIREMENT AND INSURANCE QUESTIONS
DEATH OF AN ANNUITANT
NEW DEVELOPMENTS AFFECTING FEDERAL RETIREMENT BENEFITS
IMPORTANT FORMS AND RESOURCES
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