unless fers people have 30 yrs in social security they are penilized for each year under 30 yrs. This is why i ended up collecting ss at 67 and made sure i had 30 yrs ss paid into and that has to be 30 substantial yrs meaning about 24000 a yr or more paid into ss.
What about special category employee like myself DOD firefighter who has to retire at 57? What tsp/pension and social Security penalties will I need to worry about?
Unfortunately, many UA-cam videos for federal retirees don't cover Special Category Employees. A quick search on this channel's videos came up empty. We're a small and quirky bunch. I too am a Special Category Firefighter. I'm retiring at the end of this year at the age of 55. Not knowing what you know or don't know, SCE are not subjected to the same 'penalties" as non-SCE. SCE retirement eligibility is either 20 years at the age of 50 (federal employment only - not including military buyback or sick leave balance), or 25 years at any age. When you retire, you will get a Retiree Annuity Supplement until you turn 62 - at which time you choose to take SS or wait. You do NOT get a COLA on your RAS. The RAS is paid to you by OPM and is about 85% of your age 62 SS. Like SS, RAS is subject to an earnings test if you have earned income over a certain amount should you choose to work after retiring from the federal service. You will get a COLA on your pension each year after you retire (if there is one). TSP - you can begin withdrawals from your TSP WITHOUT penalty as soon as you retire. You can direct transfer some or all of your TSP balance to an outside investment firm (Vanguard, Fidelity, etc) but you would be penalized if you withdrew from this firm before age 59 1/2. However, you can keep 1-3 years cash in the G-Fund and make withdrawals without the penalty and direct transfer from outside firm back into the TSP without penalty. It's recommended not to close your TSP (which only requires a minimum of $200). Social Security - No penalties other than what is applied to everyone (reduction if claimed before full retirement at 67, earnings test, etc.) I recommend checking out Dan Jamision's FERGUIDE on SCE (he's a retired SCE FBI agent). It covers everything you're asking about and more. Some great SCE calculators too. fersguide.com. Also check out Chris Barfield's articles at Barfield Financial. barfieldfinancial.com
Question; I want to retire at 60 years old; which is next year. I have 28.5 years. Im confused i meet Mira; 60 years + >20 yrs of service. But I’m not sure if i will have a penalty because i want to leave before 62 years old.?? Could you please clarify this. Thank you
COLA starts at age 62 for all different pension options unless you retire under Special Provisions. The full and unreduced pension options under FERS are retiring with your MRA and 30 years of service, Age 60 with 20 years of service, or age 62 with 5 years of service.
I’m a special provision employee started at age 24, And I know that to be eligible, I have to complete 20 years of service at age 50 or 25 years and retire at anytime. What if I don’t meet the age and do my 20 years and want to retire at age 44 for example. Will I still get the 34%(1.7%@20 years) and what age will I start to receive pension, Will I get SRS and if so, when?
You've answered your own question. "I know that to be eligible, I have to complete 20 years of service at age 50 or 25 years and retire at anytime." You will not be eligible until age 49. You will not get any federal pension if you leave federal employment before then. SRS (also knows as RAS - Retiree Annuity Supplement) will start immediately after you retire (when eligible). See my response to @lincorey.
@@gummo3q524 OK, I forwarded Dan Jamison, author of fersguide.com, your questions. Here's his reply... "In that scenario, at age 57 (MRA) that person will be eligible to apply for a deferred annuity calculated at 1% per year with no RAS. IF they return to federal service under FERS for a day (literally) after they are age 50, then they can retire as a [SCE] with 20 1.7% years. Strange but true!"
@@gummo3q524 I asked Dan to elaborate. This is straight out of his book: 1) Joe is age 48 and has 22 years of service as a SCE. He is not eligible to retire because he has not met the age requirement-he’s two years too young. Since Joe “has his twenty,” he is treated a little better. Here are some of Joe’s options: a) Take a GS-4 job at the local air base working at the golf course (maybe even receiving discounted greens fees!) At age 50, even though he is not currently in a SCE position, Joe can retire. He won’t be increasing his High-3, but all he needed to do was get to age 50. Joe will receive 38% (34% for the first 20 years, and 1% for each of the additional four years, two as an agent and two at the golf course) of his High-3 as well as all of the other benefits that go along with a SCE retirement and retain FEHBP coverage forever. b) Joe decides to go fishing for three years. He is now 51 years of age. Joe decides to take a job as a meter reader with the federal government that is covered by FERS deductions. After one day of meter reading, Joe retires as a LEO with full LEO benefits. Yes, that’s right: as long as Joe comes back for at least a day, after turning age 50+, in a position covered by FERS, he can retire just like he never left. (Technically, he needs to stay long enough to start a second pay period so the FEHBP can be started.) c) Joe decides that he’s done working and has no further federal service. Joe will lose his FEHBP health insurance benefits forever. Joe’s retirement benefit will be calculated using the standard 1% per year and no refund will be made for the extra half-percent he paid in as a SCE, as he was properly classified at the time. At his MRA, Joe would collect 22% (1% for each year of service) of his High-3 without an age penalty. Any military time purchased before separation will still be paid in his annuity. Note that Joe’s annuity credit is calculated using 1% per year. The only way to be paid 1.7% for the 20-year period is to retire on an immediate annuity.
Diet COLA, you coined perfectly. Awesome video. Many Thanks.
Thanks Roger!
Did u answer if we dont get a cola from 57 to 62?
I understand what happens after 62
@Jeff Galyean you will not get a cola from 57 to 62. However you could work a fun part time job as long as you do not make more than 18k per year.
What happens if I’m forced to leave my federal job because I lose my clearance? I’m 56.5 with 18 years of service
unless fers people have 30 yrs in social security they are penilized for each year under 30 yrs. This is why i ended up collecting ss at 67 and made sure i had 30 yrs ss paid into and that has to be 30 substantial yrs meaning about 24000 a yr or more paid into ss.
This was also because i was fers offset and had a civil service pension.
What about special category employee like myself DOD firefighter who has to retire at 57? What tsp/pension and social Security penalties will I need to worry about?
Unfortunately, many UA-cam videos for federal retirees don't cover Special Category Employees. A quick search on this channel's videos came up empty. We're a small and quirky bunch.
I too am a Special Category Firefighter. I'm retiring at the end of this year at the age of 55. Not knowing what you know or don't know, SCE are not subjected to the same 'penalties" as non-SCE. SCE retirement eligibility is either 20 years at the age of 50 (federal employment only - not including military buyback or sick leave balance), or 25 years at any age.
When you retire, you will get a Retiree Annuity Supplement until you turn 62 - at which time you choose to take SS or wait. You do NOT get a COLA on your RAS. The RAS is paid to you by OPM and is about 85% of your age 62 SS. Like SS, RAS is subject to an earnings test if you have earned income over a certain amount should you choose to work after retiring from the federal service.
You will get a COLA on your pension each year after you retire (if there is one).
TSP - you can begin withdrawals from your TSP WITHOUT penalty as soon as you retire. You can direct transfer some or all of your TSP balance to an outside investment firm (Vanguard, Fidelity, etc) but you would be penalized if you withdrew from this firm before age 59 1/2. However, you can keep 1-3 years cash in the G-Fund and make withdrawals without the penalty and direct transfer from outside firm back into the TSP without penalty. It's recommended not to close your TSP (which only requires a minimum of $200).
Social Security - No penalties other than what is applied to everyone (reduction if claimed before full retirement at 67, earnings test, etc.)
I recommend checking out Dan Jamision's FERGUIDE on SCE (he's a retired SCE FBI agent). It covers everything you're asking about and more. Some great SCE calculators too. fersguide.com. Also check out Chris Barfield's articles at Barfield Financial. barfieldfinancial.com
Question; I want to retire at 60 years old; which is next year. I have 28.5 years. Im confused i meet Mira; 60 years + >20 yrs of service. But I’m not sure if i will have a penalty because i want to leave before 62 years old.?? Could you please clarify this. Thank you
I don’t understand. What happens cola wise if I don’t have the full 30 years at age 57?
COLA starts at age 62 for all different pension options unless you retire under Special Provisions. The full and unreduced pension options under FERS are retiring with your MRA and 30 years of service, Age 60 with 20 years of service, or age 62 with 5 years of service.
I’m a special provision employee started at age 24, And I know that to be eligible, I have to complete 20 years of service at age 50 or 25 years and retire at anytime. What if I don’t meet the age and do my 20 years and want to retire at age 44 for example. Will I still get the 34%(1.7%@20 years) and what age will I start to receive pension, Will I get SRS and if so, when?
You've answered your own question. "I know that to be eligible, I have to complete 20 years of service at age 50 or 25 years and retire at anytime."
You will not be eligible until age 49. You will not get any federal pension if you leave federal employment before then.
SRS (also knows as RAS - Retiree Annuity Supplement) will start immediately after you retire (when eligible).
See my response to @lincorey.
@@bdorr67 then what happens to the 20 years I’ve invested in the federal government? I have to be entitled to a partial pension at some point?
@@gummo3q524 OK, I forwarded Dan Jamison, author of fersguide.com, your questions. Here's his reply...
"In that scenario, at age 57 (MRA) that person will be eligible to apply for a deferred annuity calculated at 1% per year with no RAS.
IF they return to federal service under FERS for a day (literally) after they are age 50, then they can retire as a [SCE] with 20 1.7% years.
Strange but true!"
@@gummo3q524 I asked Dan to elaborate. This is straight out of his book:
1) Joe is age 48 and has 22 years of service as a SCE. He is not eligible to retire because he has not met the age requirement-he’s two years too young. Since Joe “has his twenty,” he is treated a little better. Here are some of Joe’s options:
a) Take a GS-4 job at the local air base working at the golf course (maybe even receiving discounted greens fees!) At age 50, even though he is not currently in a SCE position, Joe can retire. He won’t be increasing his High-3, but all he needed to do was get to age 50. Joe will receive 38% (34% for the first 20 years, and 1% for each of the additional four years, two as an agent and two at the golf course) of his High-3 as well as all of the other benefits that go along with a SCE retirement and retain FEHBP coverage forever.
b) Joe decides to go fishing for three years. He is now 51 years of age. Joe decides to take a job as a meter reader with the federal government that is covered by FERS deductions. After one day of meter reading, Joe retires as a LEO with full LEO benefits. Yes, that’s right: as long as Joe comes back for at least a day, after turning age 50+, in a position covered by FERS, he can retire just like he never left. (Technically, he needs to stay long enough to start a second pay period so the FEHBP can be started.)
c) Joe decides that he’s done working and has no further federal service. Joe will lose his FEHBP health insurance benefits forever. Joe’s retirement benefit will be calculated using the standard 1% per year and no refund will be made for the extra half-percent he paid in as a SCE, as he was properly classified at the time. At his MRA, Joe would collect 22% (1% for each year of service) of his High-3 without an age penalty. Any military time purchased before separation will still be paid in his annuity. Note that Joe’s annuity credit is calculated using 1% per year. The only way to be paid 1.7% for the 20-year period is to retire on an immediate annuity.
@@bdorr67 thank you very much! It’s a strange circumstance but I think I understand.
Why do all the vids I want to watch you guys have the crappy annoying music. I can't handle it
Thank you for the suggestion, we will correct this in the future.