Very help full! Thank you! I am a fers employees, 57 years old, planning to retire at the end of this year. I am debating if i should retire on 12/31 or 1/1.your video bring up new information that are very helpful.
Watched the replay again today. So full of helpful information. Will watch again with my husband who is the federal employee and planning to work to age 70, 2026. I am no longer working so I'm the one doing the research. Your videos are enormously helpful and you are very thorough. Thank you so, so much. Shannon
Good info. I’m always planning so this is good info for when I retire in 5 years. My service date is in July and that was my target however, after listening to your good, better and best scenarios it looks like it might be best at the end of year, unfortunately. 😅
Thank you, Debbie! I watched the replay and your information was very helpful. I took a lot of notes. I see this was 3 years ago. Are there any changes to what you provided in this video, please?
Hi Cindy. Just seeing this message. I did do a couple of different videos on Social Security. Have a look at one of those and let me know if you have questions. :-)
I am just now finding your videos, and happy that I did! I enjoy your clear concise explanation of the topics and have just subscribed to try and catch your Live events. I am not retiring very soon, but want to be educated on the rules. Thank you from Oklahoma.
I sincerely appreciate your comment Maurice. Some of the "experts" make never comments about how simple I make things. I'm not here for them: I'm here for people like you. Glad this was helpful.
I'm so thankful for you Barry! Trust me, I miss them too. This winter has been tough - dealing with weather, lost electricity / wifi, seasonal depression, and lots of travel. I HAD planned to do a video today but here it is 2145 and I'm just finishing a couple of consulting reports. Thank you for watching, for letting me know that you did, and for supporting me. I'll be back just as soon as I possibly can. I'm teaching all day tomorrow (8 - 4) and Thursday. Friday is a travel day.
I am CSRS. I am tentatively planning to depart on Friday, January 3rd, but may pick Thursday, January 2nd instead. A factor for me is coordinating with my manager and IT equipment office to have someone to turn my laptop and other equipment in to on my last day.
I just happened to view your video, and I'm glad I did. You have very helpful information. I'll be checking out your other video topics, good stuff! Thanks for this Debbie, much appreciated.
So I guess I split the difference, retired last day of month September 30, 2022 unfortunately it was the middle of a pay period. Just fyi I retired at age 55 under a VERA/VSIP received VSIP payout 30 days after retiring and my last half paycheck. I still haven’t received unused annual leave payout nor a pension annuity check which I’m hearing can take months. Not complaining. So happy and blessed to get out early - stay safe from South Florida 🌴🏆⭐️
Congratulations on your retirement. I would have picked the last day of the month too if I had to choose between that OR the end of a pay period. Depending on the agency you retired from, it can take 1 - 2 pay periods to receive your annual leave payout. Typically looking at about 6 weeks after OPM receives your retirement application for those partial payments to start. You will receive partial payments for about six months on average.
You're definitely entitled to your opinion. Many people consider sick leave to be "money in the bank" though. It's not an entitlement: it's more an insurance policy for when/if we're sick. Remember FERS employees received nothing for a very long time. The fact that it is now added to our annuity payment is a nice change.
Hey, Debbie, I too JUST discovered your channel. May I say that you are HANDS DOWN the most informative government-benefits speaker I've encountered on UA-cam! So many of the others have "read a little" about the government system. CLEARLY you've worked in it, lived it, and absorbed it! It's a shame you don't have more subscribers. I'm going to do what I can to change that! :-) A few quick questions: 1. I turn 62 in LATE 2023, am a FERS employee that will have 33.5 years of service (not including SL) at that time. I want to retire "at the end" of 2023, literally just days after I turn 62. Questions: a. Is the extra .001 multiplier in effect the DAY I turn 62? I mean, if all goes as planned, I will have been 62 for a WEEK when I retire. Is that okay? There's no "waiting period" before it kicks in, right? b. Also, you talk about retiring on the last day of the year. The 30th of December is the last day of the last PAY PERIOD of 2023 whereas 12/31/2023 is the last day of the month and year, but the first day of a NEW PAY PERIOD. Does it matter which day I choose? If so, what are the considerations? 2. You mentioned that you stream live on Facebook. What's your group name, assuming you have a group? How do people know where to find your Friday-night streams? 3. You also mentioned (not necessarily in THIS VIDEO) that you do training. Where do you offer the training? Do you have a schedule? A website? Edit: I just found your website and requested your roadmap to retirement. Thanks! But I have not YET found where you're doing training, etc. I would love to attend your course!
Thank you, Thomas, so much for your feedback and input. This means so much to me. I wish I had more time to do more You Tube videos but I am teaching 3 - 5 days every week; sometimes in person (I'm in Albuquerque this week), sometimes virtually. Sometimes an agency hires me to teach only their employees, sometimes I work through the Federal Executive Boards to do what I call "community classes" where people from any agency can attend. Sadly I can't post my schedule or sign ups on the website as competitors then access that information, attempt to send plants to the training, etc. All of the other ridiculous stuff that people do. I'm happy to send you my schedule. Send me an email at debbie@pinnaclepersonnelservices.com In answer to your other questions. 1(a) The 1.1% is actually in effect if you retire the day before you turn 62. Definitely a few days later. There is no waiting period. Happy birthday. Maybe I should do a video on that. 1(b) There isn't any big difference between 12/30 and 12/31/23. If you go on the 30th, you "wouldn't be covered financially" for one day. No pay and no retirement for 12/31. Of course you wouldn't have worked on that Sunday in any instance, and no matter whether you pick 12/30 or 12/31, your pension would begin to accrue on 1/1 and be payable on 2/1. It can impact the FERS Supplement but as you'll be over 62, you don't qualify for that. Since 12/31 IS a Sunday and you wouldn't have to work, I'd recommend just putting that on your retirement application. 2. It is the Live Facebook streams that I save and then post on You Tube. That's where they live. Unfortunately I haven't been able to go live on Friday nights routinely. My FB page is Pinnacle Personnel Services but - to take the additional pressure off right now - I go live when/if I can. There's no set schedule. I am always looking for topics to discuss. I've been, as you said, "living and breathing" this for two decades now. It all seems like common knowledge to me. If you have any suggestions, please don't hesitate to let me know.
Thank you for your videos. The algorithm popped you up in my feed just as I needed to hear your info. I was very interested in what you said about retiring at the end of the year. I was planning on retiring at the end of November, would waiting a month make much of a difference?, if so how much of a difference?
If your retirement date is 12.31.23 and you have 400 hours of annual leave that is paid out to you in 2024 and are eligible for the FERS supplement is the annual leave payout counted as wages and thus possibly make you eligible for less supplement in 2025? That would make the argument to use my annual leave prior to retiring.
Or if I work until 1.31.2024 and make over the limit to where my supplement would be decreased in 2025 could I front load my TSP that month to avoid decreasing my supplement? Like essentially put my whole paycheck in tax deferred TSP for those 4 weeks?
The limit for the Supplement is $21,240 this year and none of the money you earn prior to retirement (e.g. the month of January if you retire on 1/31) does not count towards the limit. Yes, though, if you want to you can front load your TSP but putting in your entire paycheck if you'd like.
Hi Debbie.... Thank you so much for doing these videos. I have watched a few now and find the awesome and very informative!!! I got a little confused on the "Retire at the end of the Month" comments. I understood if you retire at the end of the month you would get your annuity on the first day of the following month.... but later I thought I heard you say it "takes a while for OPM to process the annuity?". So for example if one retired on 31 Dec 2023, when might they expect their first annuity check? Thanks again for your awesomeness~!!!
Hi Rick. Thank YOU for taking the time to watch the videos, and I sincerely appreciate your input. I apologize for the delay in getting back to you. I was out of the country for most of April. Since I've returned, I've been slogging through a mountain of work and trying to acclimate to an 11 hour timezone difference. Both things you've said are true. 1. If a person retires on the last day of the month, their annuity begins to accrue on the first of the following month and the payment is effective the first of the month after that. If I retire on 31 Dec 2023 then, my first annuity payment would be effective on 1 February. 2. It takes the Office of Personnel Management several months to process a retirement application. I'm seeing between 6 and 8 months right now for everything to be processed. Annuitants receive interim (aka partial) payments during that processing time. The annuity then would be - retroactive - to 1 February even though it would take a little while to "actually" receive the money. If you retire on 12/31/23, the first thing you'll receive is your final paycheck and a cash out of any annual leave you had on the books. These both come from your agency. Next, you'll receive notification from OPM that they've received your retirement application. They will assign a CSA (Civil Service Annuity) number to your claim and start interim payments - timeframes are different for everyone but I'm seeing the interims typically start somewhere around 8-10 weeks after the employee leaves their job. Partials last 6 - 8 months (again, on average...) at which time OPM will send you a booklet outlining everything about your annuity and you will then begin receiving regular, monthly, annuity payments. I hope this clears up your confusion. Don't hesitate to let me know if you have further questions.
Those few extra hours of sick leave may mean an additional month towards the retirement calculation. Not much necessarily (0.167 X high-3 for CSRS / 0.083 - 0.092 X high-3 for FERS) but it is that additional amount for the rest of my life, no matter how long I live. It adds up over time, especially if someone is on a fixed income. The annual leave payout can be substantial depending on the person's salary as well as any across the board pay raises. It is currently taking OPM 4 - 6 months (on average) to process retirement applications. The annual leave payment gets people by while they're waiting for their regular annuity payments. I'm glad neither of these are a big deal for you, personally. I mean that very sincerely. It matters to many of our employees though - especially those not earning significant pay.
Confused, I was told I’m only getting a check for annual leave earned up until September 30, 2022 when I retired. Not the amount I was slotted at the start of the rear ? Fed law enforcement civilian Thank you. Great channel and content.
Thank you for the compliment Greg. I appreciate that very much. Thank you also for your service to our country. Retirees are paid only for the annual leave they have on the books up to the date of retirement - that's true. In this video I'm not insinuating anyone is getting "something for free". To get the max payout in my example, three things would ALL have to be true. 1. The person started the year of retirement with their max carryover balance from the previous year (for most people this is 240 hours). 2. The individual is currently earning annual leave at a rate of 8 hours per pay period. If they retire on 31 December, that is going to mean they have accrued 200 (8x25) or in years like this when the pay period ends with the calendar year 208 (8x26). 3. They didn't take any annual leave in that last year of work. That ^^^ provides the maximum I was speaking of. It is correct that if you retired on 30 September, you would only be paid for the amount of leave you had accrued up to that point.
Hi Debbie, I will be retiring at the end of December. I picked December 31, the last day of the year. I know the last pay period in 2023 is December 30. I recently read an article that stated in order to start my annuity in January, I need to retire no later than December 30. Is that correct, and should I change my retirement date for that reason? I viewed your latest video yesterday and it was very informative!
I'm a bit confused. If taxes taken off before we get AL why would we be taxed again as income? Any thoughts also on how to get around paying such high taxes on my TSP loan if I default? Thanks😊
Love your UA-cam video. Question: I have a lot accrued annual leave; plus quite a bit of frozen leave, so if I retire on the last day of the year, I expect to get a large sum of payment. Can I use it to contribute to TSP for the upcoming year? Thanks.
Thank you so much for the nice compliment. I’m glad you’ve found the videos helpful. Although there have been several past bills proposed to allow us to deposit lump sum payments for annual leave into TSP, none of them have passed. You cannot contribute that money to Thrift. That said, if you want to use that for your normal budgeting, you could put 100% of your final paycheck into TSP if you’d like.
Great presentation, and great information. You explained very clear and I learned a lot from your videos. I just have a quick question: If a pay period falls on a Saturday which is not a working day and if I retire one day before on the Friday, does it count as the full pay period or not? The exact date I am talking about is July 1, 2023 which is the end of a pay period. If I retire on July 1, I will lose the benefit for the whole month of July. So I guess June 30, 2023 is not a good day to consider as a retirement date, correct? Thanks in advance.
I'm thrilled you're learning and so glad you've asked this question. If you are a FERS employee, I would not recommend retiring on 1 July even though it's the end of a pay period for the reason you've mentioned - you would not receive anything for the whole month of July. June 30th is a unique date and a actually great one to choose if you'd like to retire. Here's why. 5 USC § 6302 (b) reads, “For the purpose of this subchapter an employee is deemed employed for a full biweekly pay period if he is employed during the days within that period, exclusive of holidays and non-workdays established by Federal statute, Executive order, or administrative order, which fall within his basic administrative workweek.” Since Saturday is a non-workday, if you retire on 6/30 you will still earn annual and sick leave for that pay period even though you "technically" are retiring before the end of it. This would be true for folks working on a compressed schedule, retiring on Thursday 6/29 too so long as they had completed their 80 hours by close of business on that day.
@@debbiehatch8016 Thank you so much for such a detailed reply and great information. Now I even learned more about how compressed schedule is considered when picking up a retirement date. Yes, I am a FERS employee and, yes, I work with compressed schedule and June 30 is my RDO Friday. Now I am more confident on picking June 30th as my retirement date. Thanks again for the great information.
Hi Debbie, I watched the replay on 19 Nov '21, it was very clear and helpful. I am CSRS and 65 YO, does the "3-day extra after a PP for CSRS employees" also apply to the end of the year (Dec 31st) benefit. IOW, can CSRS employee choose to retire up to Jan 3rd (2021 in my case) and still derive most of the benefits you discussed. Note I am not too concerned about Use or Lose as I plan to draw that down anyway...I am just interested in the other positives you mentioned. Also, since a 2.6% federal salary and commensurate locality pay increases are expected would it not be beneficial to my High-3 calculations to retire in January (1st, 2nd or 3rd) so this can add to my high-3 annuity in perpetuity. Thank you
I'm thrilled you found it helpful and easy to understand Manny. Thanks so much for letting me know. The 3 additional days for CSRS does apply to the end of the year too. CSRS people pick 31 Dec - 3 Jan with their annuity accrual starting the very next day. Two things we want to consider though. (1) When does that last pay period end? and (2) Am I concerned about COLA in retirement? PP1 for 2022 starts on 2 January. To ensure I don't lose any annual leave when they apply Use or Lose on 1/2, I'd want to retire no later than 1/1. COLA in retirement is based on the Consumer Price Index, not whether federal employees are getting a raise or not. The numbers are announced in October. If there's an increase in the CPI, there would be an increase in December's retirement payment which we don't receive until January. That first one can be prorated based on how many months in the previous year we were retired. If I retired in December, I'd receive 100% of any CPI. If I retired in January, I'd receive 11/12ths of any COLA that first year. Speaking of federal employees getting a raise - that becomes effective with PP1 BUT it counts in my high three only for the amount of time it was in effect. Let's say I'm making $80,000 right now. Come January, that would become $82,160 (it's 2.7% vs the 2.6% you mentioned). BUT I get credit for the full $82K in my high-3 only if I stay for a full year after it becomes effective. If I stay 1 day, instead of counting as $82,160, it would count as only $228. If I stay 2 days, then $4,564.81 in my high 3. The number of days the money is in effect is divided by 360. Here's a video I did on that. ua-cam.com/video/JrgywAbEtlg/v-deo.html After you watch it, let me know if you have any questions.
Enjoy the videos very much, and very enlightening. I currently work for DoD, and I am planning on retiring at the end of July, I have a question on the cashing in on my annual leave, could you tell me when cashing it in, do they take tsp out of the cash out, or would it be just my pay? thank you.
Thank you for the nice feedback. Congratulations on your impending retirement. TSP contributions can be made out of basic pay only (base plus locality). Your annual leave will have federal (and potentially state - depending on where you live) taxes, OASDI, and Medicare come out of it, nothing else.
@@debbiehatch8016 thank you very much. I’ll pass the word about your videos. I work with a couple other guys that are retiring this year too. Thanks again.
hello I'm watching your video on 09-30-2021. I am thinking about retiring on November 30 2023. I will have 38 years and 11 months at 56 1/2 age. My early out date is 11-17-2023. I was thinking on leaving 12-31-2023 but still using A/L for the last two weeks of December. I now feel if i leave on November instead I will have more leave to sell back instead of using it . Not worried about the taxes, but was not going to be working on the holidays. What do you thing about my Month change.
Hi Mike. You have the choice of either using the leave (the benefits are that while using, you're also earning and your taxes on that leave will be your regular income taxes) OR cashing it out (the benefit is that you'll get that money in a lump sum quite quickly and it can be something you use to get you over the time OPM will be processing your pension. Tax withholding is pretty substantial though. 22% federal 6.2% SS 1.45% Medicare and applicable state taxes. You don't owe those taxes, they are what's taken off the top. At the end of the year when you file your taxes, you may get a refund, or owe more depending on your bracket).
I that scenario wouldn't he only get 1/12 of the COLA because he was employed 11 months? I'm still 8 1/2 out from the 1.1%, but pain I got in my chest thinking of another 8 months tells me I wouldn't make it. I'd rather go in April and loose,the 1/3.
@@debbiehatch8016 for got to mention i should also get the supplement for December if i retire on 11-30-2023 plus the last 2 weeks pay plus A/L cash out then the retirement
I turn 60 on June 5, plan to retire with 60/20 that month. Told its better to retire on July 1, vice Jun 30 because July 1 is over the half year point and OPM will give me a full year credit on some calculations vice the last calendar year for a June retirement. True?
No. That is not true. Plus, as a FERS person, if you retire in 6/30 you’re eligible for an annuity payment on 1 August. If you go on 7/1, you will not earn pay or retirement for July. Your first annuity payment would be due 1 September.
The first pay period always begins the first day of the first full two weeks in January. For 2024, it will start on 14 January. That means 31 Dec 23 - 13 Jan 24 will be pay period 27.
@@debbiehatch8016 Thanks Debbie - so for leave hording purposes retiring on the 31st should get me 26 pay periods - 200 hrs. plus 240 carryover. By the way, so glad I found your channel - super helpful for feds approaching retirement - look forward to watching the rest of your videos!
@@grashelm3114 Close. Since there is an extra pay period, leaving on 12/31/23 would give you 208 + 240. I'm so glad you found me too!!! Happy to help and/or answer questions at any time.
@@debbiehatch8016 If I were to retire on 13 Jan 24, would I get all of the leave accumulated from the previous year since it's an extra pay period from 2023? Or would I need to retire on 30 Dec 23 to get all the accumulated leave?
@@grashelm3114 Picking the 14th for retirement (working last day on the 13th - or 12th if on a compressed tour with Friday as RDO) would mean you would be paid for all of the annual leave on the books. You would not be cut back to use or lose unless on the books January 15th. You would not get an annuity for January though - that would start to accrue on 1 February with payment due 1 March.
Debbie, I just discovered your channel and will share it with my other FERS co-workers. Thank you for what you are doing.
Thank YOU so much for that, John. If you have specific questions or suggestions for videos, please let me know.
Very help full! Thank you!
I am a fers employees, 57 years old, planning to retire at the end of this year. I am debating if i should retire on 12/31 or 1/1.your video bring up new information that are very helpful.
I'm so glad you found this helpful! Thank you for letting me know.
Watched and saved the replay for future research...great channel! Thank you!
Thank you, sincerely, for the nice compliment.
Watched the replay again today. So full of helpful information. Will watch again with my husband who is the federal employee and planning to work to age 70, 2026. I am no longer working so I'm the one doing the research. Your videos are enormously helpful and you are very thorough. Thank you so, so much. Shannon
Thank you so very much for that feedback, Shannon. I'm so glad you find the videos helpful.
I am 4 years till retirment at 58. Thanks for this video. very helpful
Thank you very much for letting me know you found value in this.
I stumbled across your videos, and they are so helpful.
Happy accident then. I'm glad you're here and that you're finding the videos helpful. Thank you for letting me know.
Thanks really glad I found your channel, good solid information.
Thank you! I’m glad you found the info helpful.
Good info. I’m always planning so this is good info for when I retire in 5 years. My service date is in July and that was my target however, after listening to your good, better and best scenarios it looks like it might be best at the end of year, unfortunately. 😅
Sorry. :-) The good news is, those few months should pass quickly with a light at the end of the (proverbial) tunnel.
I truly enjoy your teaching style. I go back to watch your older videos just to get refreshers. Thank you!
Thank you so much for letting me know!!!
Thank you, Debbie! I watched the replay and your information was very helpful. I took a lot of notes. I see this was 3 years ago. Are there any changes to what you provided in this video, please?
6pm thanks Debbie what about Social Security info.
Hi Cindy. Just seeing this message. I did do a couple of different videos on Social Security. Have a look at one of those and let me know if you have questions. :-)
I am just now finding your videos, and happy that I did! I enjoy your clear concise explanation of the topics and have just subscribed to try and catch your Live events. I am not retiring very soon, but want to be educated on the rules. Thank you from Oklahoma.
It is never too soon to start learning about your retirement, David. I’m glad you’re here.
Very informative, you make it easier to understand. Better than sitting 8hrs in those federal classes. Great job.
I sincerely appreciate your comment Maurice. Some of the "experts" make never comments about how simple I make things. I'm not here for them: I'm here for people like you. Glad this was helpful.
Awesome info , thank you
You're so welcome. Thank YOU for letting me know.
I've watched this for the third time. So helpful. I miss the weekly videos.
I'm so thankful for you Barry! Trust me, I miss them too. This winter has been tough - dealing with weather, lost electricity / wifi, seasonal depression, and lots of travel. I HAD planned to do a video today but here it is 2145 and I'm just finishing a couple of consulting reports. Thank you for watching, for letting me know that you did, and for supporting me. I'll be back just as soon as I possibly can. I'm teaching all day tomorrow (8 - 4) and Thursday. Friday is a travel day.
Just watched it again to refresh myself as I'm retiring end of next year. Very helpful!
I am CSRS. I am tentatively planning to depart on Friday, January 3rd, but may pick Thursday, January 2nd instead. A factor for me is coordinating with my manager and IT equipment office to have someone to turn my laptop and other equipment in to on my last day.
January will be here before we know it. Congratulations on your impending retirement.
Watched replay. So glad that I found you. Extremely helpful and finally the clarity I have been looking for. Thank you!
Thank you so much for letting me know!!! If things ever calm down even a tiny bit, I plan to get back to videos more consistently.
Loved this. Very helpful. I am a FERS nurse.
Thank you so much! Both for your comment and your service. 🫶🏻
Debbie you are a jewel! Thank you so much for your wealth of knowledge!
You are so very welcome.
Watched the replay - thanks
Thank YOU, both for watching and also for letting me know.
Great info.
Thank you very much for letting me know it was helpful.
Excellent info. 2024. 😊
This information is just what I needed. You were very clear in explaining options for when to retire. Thank you.
That's important to me Sharon. Thank YOU for letting me know.
Extremely helpful videos.
Thank you so much. Glad you like them!
Thank you for this excellent presentation. I learned lots.
Great!!! Thank you for letting me know.
Great video!
Thank you so much for letting me know.
You do a great job- great teacher. Thank you
I appreciate your feedback very much. Thank you.
I just happened to view your video, and I'm glad I did. You have very helpful information. I'll be checking out your other video topics, good stuff! Thanks for this Debbie, much appreciated.
Thank YOU for taking the time to leave me some feedback. I sincerely appreciate it.
So I guess I split the difference, retired last day of month September 30, 2022 unfortunately it was the middle of a pay period. Just fyi I retired at age 55 under a VERA/VSIP received VSIP payout 30 days after retiring and my last half paycheck. I still haven’t received unused annual leave payout nor a pension annuity check which I’m hearing can take months. Not complaining. So happy and blessed to get out early - stay safe from South Florida 🌴🏆⭐️
Congratulations on your retirement. I would have picked the last day of the month too if I had to choose between that OR the end of a pay period. Depending on the agency you retired from, it can take 1 - 2 pay periods to receive your annual leave payout. Typically looking at about 6 weeks after OPM receives your retirement application for those partial payments to start. You will receive partial payments for about six months on average.
@@debbiehatch8016 Thank you, you are the best ! Love the channel and content. Very helpful to Federal employees ⭐️🏆⭐️
Your training videos are wonderful!
Thank you so much!
Thank you for the info
You're so welcome.
ugg. USE your sick leave. Giving it back is like a bonus for the Federal Gov.
You're definitely entitled to your opinion. Many people consider sick leave to be "money in the bank" though. It's not an entitlement: it's more an insurance policy for when/if we're sick. Remember FERS employees received nothing for a very long time. The fact that it is now added to our annuity payment is a nice change.
Hey, Debbie, I too JUST discovered your channel. May I say that you are HANDS DOWN the most informative government-benefits speaker I've encountered on UA-cam! So many of the others have "read a little" about the government system. CLEARLY you've worked in it, lived it, and absorbed it! It's a shame you don't have more subscribers. I'm going to do what I can to change that! :-)
A few quick questions:
1. I turn 62 in LATE 2023, am a FERS employee that will have 33.5 years of service (not including SL) at that time. I want to retire "at the end" of 2023, literally just days after I turn 62. Questions:
a. Is the extra .001 multiplier in effect the DAY I turn 62? I mean, if all goes as planned, I will have been 62 for a WEEK when I retire. Is that okay? There's no "waiting period" before it kicks in, right?
b. Also, you talk about retiring on the last day of the year. The 30th of December is the last day of the last PAY PERIOD of 2023 whereas 12/31/2023 is the last day of the month and year, but the first day of a NEW PAY PERIOD. Does it matter which day I choose? If so, what are the considerations?
2. You mentioned that you stream live on Facebook. What's your group name, assuming you have a group? How do people know where to find your Friday-night streams?
3. You also mentioned (not necessarily in THIS VIDEO) that you do training. Where do you offer the training? Do you have a schedule? A website?
Edit: I just found your website and requested your roadmap to retirement. Thanks! But I have not YET found where you're doing training, etc. I would love to attend your course!
Thank you, Thomas, so much for your feedback and input. This means so much to me.
I wish I had more time to do more You Tube videos but I am teaching 3 - 5 days every week; sometimes in person (I'm in Albuquerque this week), sometimes virtually. Sometimes an agency hires me to teach only their employees, sometimes I work through the Federal Executive Boards to do what I call "community classes" where people from any agency can attend. Sadly I can't post my schedule or sign ups on the website as competitors then access that information, attempt to send plants to the training, etc. All of the other ridiculous stuff that people do. I'm happy to send you my schedule. Send me an email at debbie@pinnaclepersonnelservices.com
In answer to your other questions. 1(a) The 1.1% is actually in effect if you retire the day before you turn 62. Definitely a few days later. There is no waiting period. Happy birthday. Maybe I should do a video on that. 1(b) There isn't any big difference between 12/30 and 12/31/23. If you go on the 30th, you "wouldn't be covered financially" for one day. No pay and no retirement for 12/31. Of course you wouldn't have worked on that Sunday in any instance, and no matter whether you pick 12/30 or 12/31, your pension would begin to accrue on 1/1 and be payable on 2/1. It can impact the FERS Supplement but as you'll be over 62, you don't qualify for that. Since 12/31 IS a Sunday and you wouldn't have to work, I'd recommend just putting that on your retirement application.
2. It is the Live Facebook streams that I save and then post on You Tube. That's where they live. Unfortunately I haven't been able to go live on Friday nights routinely. My FB page is Pinnacle Personnel Services but - to take the additional pressure off right now - I go live when/if I can. There's no set schedule.
I am always looking for topics to discuss. I've been, as you said, "living and breathing" this for two decades now. It all seems like common knowledge to me. If you have any suggestions, please don't hesitate to let me know.
Thank you, such great information as we near retirement.
You're very welcome. I'm glad you're finding the videos helpful.
Very very helpful video, thanks,
Now I have a clear idea about when is the best day to retire,
❤️love your channel
Thank you so much for letting me know!!
Thank you for your videos. The algorithm popped you up in my feed just as I needed to hear your info. I was very interested in what you said about retiring at the end of the year. I was planning on retiring at the end of November, would waiting a month make much of a difference?, if so how much of a difference?
Watched the replay. Thanks for the good info. Have you covered the WEP or GPO offset with SS benefits?
Thank you very much. Yes, I've covered WEP and GPO here. ua-cam.com/video/OdAfTsu4zss/v-deo.html
If your retirement date is 12.31.23 and you have 400 hours of annual leave that is paid out to you in 2024 and are eligible for the FERS supplement is the annual leave payout counted as wages and thus possibly make you eligible for less supplement in 2025? That would make the argument to use my annual leave prior to retiring.
No Matthew. The annual leave payout does not count against your Supplement earnings limit.
This was the besttttttttttt.. watching after the fact
Thank you so much.
Or if I work until 1.31.2024 and make over the limit to where my supplement would be decreased in 2025 could I front load my TSP that month to avoid decreasing my supplement? Like essentially put my whole paycheck in tax deferred TSP for those 4 weeks?
The limit for the Supplement is $21,240 this year and none of the money you earn prior to retirement (e.g. the month of January if you retire on 1/31) does not count towards the limit. Yes, though, if you want to you can front load your TSP but putting in your entire paycheck if you'd like.
Hi Debbie.... Thank you so much for doing these videos. I have watched a few now and find the awesome and very informative!!!
I got a little confused on the "Retire at the end of the Month" comments. I understood if you retire at the end of the month you would get your annuity on the first day of the following month.... but later I thought I heard you say it "takes a while for OPM to process the annuity?". So for example if one retired on 31 Dec 2023, when might they expect their first annuity check?
Thanks again for your awesomeness~!!!
Hi Rick. Thank YOU for taking the time to watch the videos, and I sincerely appreciate your input. I apologize for the delay in getting back to you. I was out of the country for most of April. Since I've returned, I've been slogging through a mountain of work and trying to acclimate to an 11 hour timezone difference.
Both things you've said are true.
1. If a person retires on the last day of the month, their annuity begins to accrue on the first of the following month and the payment is effective the first of the month after that. If I retire on 31 Dec 2023 then, my first annuity payment would be effective on 1 February.
2. It takes the Office of Personnel Management several months to process a retirement application. I'm seeing between 6 and 8 months right now for everything to be processed. Annuitants receive interim (aka partial) payments during that processing time. The annuity then would be - retroactive - to 1 February even though it would take a little while to "actually" receive the money.
If you retire on 12/31/23, the first thing you'll receive is your final paycheck and a cash out of any annual leave you had on the books. These both come from your agency. Next, you'll receive notification from OPM that they've received your retirement application. They will assign a CSA (Civil Service Annuity) number to your claim and start interim payments - timeframes are different for everyone but I'm seeing the interims typically start somewhere around 8-10 weeks after the employee leaves their job. Partials last 6 - 8 months (again, on average...) at which time OPM will send you a booklet outlining everything about your annuity and you will then begin receiving regular, monthly, annuity payments.
I hope this clears up your confusion. Don't hesitate to let me know if you have further questions.
I don't understand why anyone worries about a few hrs of AL/SL when they're retiring, lol.
Those few extra hours of sick leave may mean an additional month towards the retirement calculation. Not much necessarily (0.167 X high-3 for CSRS / 0.083 - 0.092 X high-3 for FERS) but it is that additional amount for the rest of my life, no matter how long I live. It adds up over time, especially if someone is on a fixed income.
The annual leave payout can be substantial depending on the person's salary as well as any across the board pay raises. It is currently taking OPM 4 - 6 months (on average) to process retirement applications. The annual leave payment gets people by while they're waiting for their regular annuity payments.
I'm glad neither of these are a big deal for you, personally. I mean that very sincerely. It matters to many of our employees though - especially those not earning significant pay.
Confused, I was told I’m only getting a check for annual leave earned up until September 30, 2022 when I retired. Not the amount I was slotted at the start of the rear ? Fed law enforcement civilian Thank you. Great channel and content.
Thank you for the compliment Greg. I appreciate that very much. Thank you also for your service to our country. Retirees are paid only for the annual leave they have on the books up to the date of retirement - that's true. In this video I'm not insinuating anyone is getting "something for free". To get the max payout in my example, three things would ALL have to be true.
1. The person started the year of retirement with their max carryover balance from the previous year (for most people this is 240 hours).
2. The individual is currently earning annual leave at a rate of 8 hours per pay period. If they retire on 31 December, that is going to mean they have accrued 200 (8x25) or in years like this when the pay period ends with the calendar year 208 (8x26).
3. They didn't take any annual leave in that last year of work.
That ^^^ provides the maximum I was speaking of. It is correct that if you retired on 30 September, you would only be paid for the amount of leave you had accrued up to that point.
@@debbiehatch8016 yes you are correct, I would have loved an extra 240 A.L. Check 💰 nobody won the 1.2 Billion lotto I’m banking on that 🏦😉🥹⭐️😎
@@gregthomas2448 Best of luck!! 🤑
Hi Debbie, I will be retiring at the end of December. I picked December 31, the last day of the year. I know the last pay period in 2023 is December 30. I recently read an article that stated in order to start my annuity in January, I need to retire no later than December 30. Is that correct, and should I change my retirement date for that reason? I viewed your latest video yesterday and it was very informative!
What is considered the separation date, when you retire, by the TSP to be eligible to request withdrawal for immediate annuity
I'm a bit confused. If taxes taken off before we get AL why would we be taxed again as income? Any thoughts also on how to get around paying such high taxes on my TSP loan if I default? Thanks😊
Love your UA-cam video. Question: I have a lot accrued annual leave; plus quite a bit of frozen leave, so if I retire on the last day of the year, I expect to get a large sum of payment. Can I use it to contribute to TSP for the upcoming year? Thanks.
Thank you so much for the nice compliment. I’m glad you’ve found the videos helpful. Although there have been several past bills proposed to allow us to deposit lump sum payments for annual leave into TSP, none of them have passed. You cannot contribute that money to Thrift. That said, if you want to use that for your normal budgeting, you could put 100% of your final paycheck into TSP if you’d like.
Great presentation, and great information. You explained very clear and I learned a lot from your videos. I just have a quick question: If a pay period falls on a Saturday which is not a working day and if I retire one day before on the Friday, does it count as the full pay period or not? The exact date I am talking about is July 1, 2023 which is the end of a pay period. If I retire on July 1, I will lose the benefit for the whole month of July. So I guess June 30, 2023 is not a good day to consider as a retirement date, correct? Thanks in advance.
I'm thrilled you're learning and so glad you've asked this question. If you are a FERS employee, I would not recommend retiring on 1 July even though it's the end of a pay period for the reason you've mentioned - you would not receive anything for the whole month of July.
June 30th is a unique date and a actually great one to choose if you'd like to retire.
Here's why. 5 USC § 6302 (b) reads, “For the purpose of this subchapter an employee is deemed employed for a full biweekly pay period if he is employed during the days within that period, exclusive of holidays and non-workdays established by Federal statute, Executive order, or administrative order, which fall within his basic administrative workweek.” Since Saturday is a non-workday, if you retire on 6/30 you will still earn annual and sick leave for that pay period even though you "technically" are retiring before the end of it. This would be true for folks working on a compressed schedule, retiring on Thursday 6/29 too so long as they had completed their 80 hours by close of business on that day.
@@debbiehatch8016 Thank you so much for such a detailed reply and great information. Now I even learned more about how compressed schedule is considered when picking up a retirement date. Yes, I am a FERS employee and, yes, I work with compressed schedule and June 30 is my RDO Friday. Now I am more confident on picking June 30th as my retirement date. Thanks again for the great information.
Hi Debbie, I watched the replay on 19 Nov '21, it was very clear and helpful. I am CSRS and 65 YO, does the "3-day extra after a PP for CSRS employees" also apply to the end of the year (Dec 31st) benefit. IOW, can CSRS employee choose to retire up to Jan 3rd (2021 in my case) and still derive most of the benefits you discussed. Note I am not too concerned about Use or Lose as I plan to draw that down anyway...I am just interested in the other positives you mentioned. Also, since a 2.6% federal salary and commensurate locality pay increases are expected would it not be beneficial to my High-3 calculations to retire in January (1st, 2nd or 3rd) so this can add to my high-3 annuity in perpetuity. Thank you
I'm thrilled you found it helpful and easy to understand Manny. Thanks so much for letting me know. The 3 additional days for CSRS does apply to the end of the year too. CSRS people pick 31 Dec - 3 Jan with their annuity accrual starting the very next day. Two things we want to consider though. (1) When does that last pay period end? and (2) Am I concerned about COLA in retirement?
PP1 for 2022 starts on 2 January. To ensure I don't lose any annual leave when they apply Use or Lose on 1/2, I'd want to retire no later than 1/1.
COLA in retirement is based on the Consumer Price Index, not whether federal employees are getting a raise or not. The numbers are announced in October. If there's an increase in the CPI, there would be an increase in December's retirement payment which we don't receive until January. That first one can be prorated based on how many months in the previous year we were retired. If I retired in December, I'd receive 100% of any CPI. If I retired in January, I'd receive 11/12ths of any COLA that first year.
Speaking of federal employees getting a raise - that becomes effective with PP1 BUT it counts in my high three only for the amount of time it was in effect. Let's say I'm making $80,000 right now. Come January, that would become $82,160 (it's 2.7% vs the 2.6% you mentioned). BUT I get credit for the full $82K in my high-3 only if I stay for a full year after it becomes effective. If I stay 1 day, instead of counting as $82,160, it would count as only $228. If I stay 2 days, then $4,564.81 in my high 3. The number of days the money is in effect is divided by 360. Here's a video I did on that. ua-cam.com/video/JrgywAbEtlg/v-deo.html
After you watch it, let me know if you have any questions.
Enjoy the videos very much, and very enlightening. I currently work for DoD, and I am planning on retiring at the end of July, I have a question on the cashing in on my annual leave, could you tell me when cashing it in, do they take tsp out of the cash out, or would it be just my pay? thank you.
Thank you for the nice feedback. Congratulations on your impending retirement. TSP contributions can be made out of basic pay only (base plus locality). Your annual leave will have federal (and potentially state - depending on where you live) taxes, OASDI, and Medicare come out of it, nothing else.
@@debbiehatch8016 thank you very much. I’ll pass the word about your videos. I work with a couple other guys that are retiring this year too. Thanks again.
@@genog319 Thank you.
hello I'm watching your video on 09-30-2021. I am thinking about retiring on November 30 2023. I will have 38 years and 11 months at 56 1/2 age. My early out date is 11-17-2023. I was thinking on leaving 12-31-2023 but still using A/L for the last two weeks of December. I now feel if i leave on November instead I will have more leave to sell back instead of using it . Not worried about the taxes, but was not going to be working on the holidays. What do you thing about my Month change.
Hi Mike. You have the choice of either using the leave (the benefits are that while using, you're also earning and your taxes on that leave will be your regular income taxes) OR cashing it out (the benefit is that you'll get that money in a lump sum quite quickly and it can be something you use to get you over the time OPM will be processing your pension. Tax withholding is pretty substantial though. 22% federal 6.2% SS 1.45% Medicare and applicable state taxes. You don't owe those taxes, they are what's taken off the top. At the end of the year when you file your taxes, you may get a refund, or owe more depending on your bracket).
I that scenario wouldn't he only get 1/12 of the COLA because he was employed 11 months? I'm still 8 1/2 out from the 1.1%, but pain I got in my chest thinking of another 8 months tells me I wouldn't make it. I'd rather go in April and loose,the 1/3.
@@kantoo6854 Actually, under FERS unless we retire on a disability or special provisions (LEO, FF, ATC, CBPO) we get no COLA until we are 62.
@@debbiehatch8016 My fault. I got so wrapped up in the monthly timing that I forgot the 56 1/2. Thank you.
@@debbiehatch8016 for got to mention i should also get the supplement for December if i retire on 11-30-2023 plus the last 2 weeks pay plus A/L cash out then the retirement
I turn 60 on June 5, plan to retire with 60/20 that month. Told its better to retire on July 1, vice Jun 30 because July 1 is over the half year point and OPM will give me a full year credit on some calculations vice the last calendar year for a June retirement. True?
No. That is not true.
Plus, as a FERS person, if you retire in 6/30 you’re eligible for an annuity payment on 1 August. If you go on 7/1, you will not earn pay or retirement for July. Your first annuity payment would be due 1 September.
In 2023, would Dec 31st be the first day of pay period 1 in 2024 or would it be the first day of an extra pay period for 2023 (pay period 27)?
The first pay period always begins the first day of the first full two weeks in January. For 2024, it will start on 14 January. That means 31 Dec 23 - 13 Jan 24 will be pay period 27.
@@debbiehatch8016 Thanks Debbie - so for leave hording purposes retiring on the 31st should get me 26 pay periods - 200 hrs. plus 240 carryover. By the way, so glad I found your channel - super helpful for feds approaching retirement - look forward to watching the rest of your videos!
@@grashelm3114 Close. Since there is an extra pay period, leaving on 12/31/23 would give you 208 + 240. I'm so glad you found me too!!! Happy to help and/or answer questions at any time.
@@debbiehatch8016 If I were to retire on 13 Jan 24, would I get all of the leave accumulated from the previous year since it's an extra pay period from 2023? Or would I need to retire on 30 Dec 23 to get all the accumulated leave?
@@grashelm3114 Picking the 14th for retirement (working last day on the 13th - or 12th if on a compressed tour with Friday as RDO) would mean you would be paid for all of the annual leave on the books. You would not be cut back to use or lose unless on the books January 15th. You would not get an annuity for January though - that would start to accrue on 1 February with payment due 1 March.
The day after I win the lottery is a good day to retire. Easy-peasy. :)
Wait until those winnings have been verified. :-)