IN THIS ARTICLE
This article will cover your FERS basic benefit plan. You will learn everything from how to determine your retirement eligibility to how your FERS income will be taxed.
We have been helping federal employees make a smooth and confident transition into retirement for many years at Minerva Planning Group, and we hope that this information can help you make a similar transition into the retirement you have worked so hard to attain.
THREE INCOME SOURCES FOR FEDERAL GOVERNMENT EMPLOYEES
FERS basic benefit plan payments
Social Security benefits
When determining the age at which you can retire and collect your FRS pension, you can use the formula that the government provides. At first glance, the formula seems simple; however, as with many of your federal benefits, once you delve deeper, the apparent simplicity becomes complex. The formula is:
Retirement Eligibility = Your Age + Number of Years of Creditable Service*
*Your creditable service is the length of your federal employment that is eligible for the FERS retirement. For a fuller explanation of creditable service, visit the OPM’s webpage on the topic.
It pays to be diligent in determining your eligibility date. You may be eligible for two or more options, which can really give you the opportunity to maximize your retirement income!