1811 Retirement

[fratto]

Hi folks,
Can someone please explain to me what the Government offers for 1811 retirement benefits? I know that it is a 20 year retirement, what is the percentage, and do they retain their health care benefits for them and their family after retirement? Thanks in advance,
Vince

[Nole795]

Under the FRS (federal Retirement System) here is the way it works. For the first 20 years, you get 1.7% of your salary each year. So 20 years equals 34% of your salary. For every year you work after, you get 1% salary. So if you do 25 years with the federal govt. as an 1811, you will get 39% of your (high 3) salary.

Hopefully you will be wise enough to contribute your money into the TSP (Thrift Savings Plan) which will supplement your retirement.

Here are some sites for more info:

http://www.opm.gov/retire/

http://www.tsp.gov/

As far as I know, you can still pay for FEHB (Federal Employee Health Benefits) as a retiree for yourself and your spouse, and any children under age 22.

http://www.opm.gov/insure/health/

[SPEtactical]

Under the FRS (federal Retirement System) here is the way it works. For the first 20 years, you get 1.7% of your salary each year. So 20 years equals 34% of your salary. For every year you work after, you get 1% salary. So if you do 25 years with the federal govt. as an 1811, you will get 39% of your (high 3) salary.

Hopefully you will be wise enough to contribute your money into the TSP (Thrift Savings Plan) which will supplement your retirement.

Here are some sites for more info:

http://www.opm.gov/retire/

http://www.tsp.gov/

As far as I know, you can still pay for FEHB (Federal Employee Health Benefits) as a retiree for yourself and your spouse, and any children under age 22.

http://www.opm.gov/insure/health/

Wow, that absolutely sucks! After 25 years with the county I get 75% of my salary.

[Nole795]

Wow, that absolutely sucks! After 25 years with the county I get 75% of my salary.

Yea, the federal govt benefits are not at all par with my previous agency. We dont even have an established dental plan. But I will make more money in the long run with the federal system salary wise. The bulk of your retirement under FRS is your contributions to the TSP. The federal govt. will match 5% as long as you commit at least 6% to TSP. As long as you keep adding to your funds, and the investments are solid...hopefully you will come out pretty good when it is time to retire.

[Switchback]

Wow, that absolutely sucks! After 25 years with the county I get 75% of my salary.

Do yuo get a 401K with that? Is your retirement vested, or does it rely on the finances of the city/state?

Contributing 12% to my TSP, plus the 5% from the gov and then my 47% at retirement (if I stay until I am 57) and I will likely make MORE retired. That doesn't sound too bad at all in my book.

[Hoffa218]

Do yuo get a 401K with that? Is your retirement vested, or does it rely on the finances of the city/state?

Contributing 12% to my TSP, plus the 5% from the gov and then my 47% at retirement (if I stay until I am 57) and I will likely make MORE retired. That doesn't sound too bad at all in my book.

Yeah but do you G-men have to pick up the tab for health insurance when you retire? And you guys also contribute into that pension as well, don't you?

I get 50 percent at 20 years. Non-contributory. Plus 1/60th each year over 20 if I stay 25 or more up to 66%. Paid up health insurance for me and my family after I retire. A 457 (deferred comp) plan that I can put up to 25% into (although no matching from my agency) Vested after 5 years with NYS Police and Fire Retirement System. No state income tax on pension income.

50 % of my top 3 average when I'm 42 doesn't sound too bad either! :p

[Nole795]

Yeah but do you G-men have to pick up the tab for health insurance when you retire? And you guys also contribute into that pension as well, don't you?

I get 50 percent at 20 years. Non-contributory. Plus 1/60th each year over 20 if I stay 25 or more up to 66%. Paid up health insurance for me and my family after I retire. A 457 (deferred comp) plan that I can put up to 25% into (although no matching from my agency) Vested after 5 years with NYS Police and Fire Retirement System. No state income tax on pension income.

50 % of my top 3 average when I'm 42 doesn't sound too bad either! :p

Sounds like you got a good plan there Hoffa, plus being 42 when you retire is also a plus. For the FERS, we still have to pay for our medical benefits upon retirement. I think the plan is expensive as it is now, I pay about $118.00 bi-weekly for coverage for me and my wife on a PPO. When I worked for my previous agency, it was much cheaper.

We have agents here who are are on the old federal plan called CRS. Those guys are laughing all the way to the bank. They get a percentage of their salary dependant on their years of salary. There are some in my office who will be bringing in 100K a year under that plan. Unfortunately, they changed the retirement plan to the current FRS some years back.

I agree with Switch, as long as your invest into your TSP, the market is good, and you do your time, you should live pretty well on your federal benefits.

[eff-bee-eye]

Wow, that absolutely sucks! After 25 years with the county I get 75% of my salary.

Yeah but what is that salary? Most Fed 1811's will retire at LEAST in the 100K range, this of course does not include overtime. And it's not fair to compare those two figures (75% vs. 40%), because such a large part of federal retirement (under the new FERS system, hired after 1984) is your individual contributions to the Thrift Savings Plan. If you invest wisely, it is fairly easy to retire with at least a million, which would be ON TOP of that 40% basic annuity you are collecting.

But some local/state agencies DO have a better benefits/retirement package, no denying that. GENERALLY speaking, an 1811 will have a higher salary, so it is up to him/her to save for their own retirement, and invest wisely. Because under the new (FERS) system, no one is going to hold your hand until you retire. And for God's sake people, if you borrow $$ off your TSP account, for kid's college, home improvements, etc.....don't forget to PAY IT BACK!!

[fratto]

Thanks for the info folks, I am trying to determine if the grass is greener on the federal side compared to the state level.
Fratto

[Piggy]

Tough call, I'm sure what one agency lacks, the other makes up for. I like the mobility and opportunities available in the federal system.

[jvale00]

Not all fed police get the "law enforcement retierment" (6c) The best retirement I have ever seen for LEO was California. The city contributes 3% at 50 you can retire which is 90% of your pay. Not to shabby if your making over a 100k a year.

[SR-25]

Not all fed police get the "law enforcement retierment" (6c) The best retirement I have ever seen for LEO was California. The city contributes 3% at 50 you can retire which is 90% of your pay. Not to shabby if your making over a 100k a year.

Ya, I always figured th FED's would have a better retirement plan. But hearing all of this, maybe ill stay local/state in CA. Does anyone know if the DSS has a different ( maybe better ) retirement plan since they do international stuff?

[tomahawk134]

if you are considering the International Funds under TSP, they are not DOING WELL at all ....

[Group9]

It has been said many times on this board, but apparently it can't be said too many, you have to make choices and you have to manage your own retirement plan in federal service.

1. It is a GREAT retirement plan if you do the research, make the right choices, and keep up with it, and use the TSP the way it is designed to be used.

2. It is a CRAPPY retirement plan if you do nothing.

Those joining federal service are crazy if they don't follow number one.

[Nole795]

Well said Group9, and now with the introduction of the L Fund, you dont really even have to be knowledgable of the market.

I maxed myself this year at 15%. It hurts a little, but I know in the long run, I will definately be happy that I did it.