Do you have a good understanding of your federal retirement benefits? Are you utilizing these plans in order to have enough money to retire? The Federal Employees’ Retirement System (FERS) offers a comprehensive three-part retirement package with a number of additional benefits that federal employees can benefit from.
The FERS retirement package includes:
Basic Benefit Plan
Each pay period, you’ll pay a small amount to the Basic Benefit Plan while your agency contributes one percent of your annual pay. This plan also includes long-term disability and survivor benefits for your spouse and children. Employees must work at least five years for the federal government to receive these benefits.
There are survivor benefits included in FERS. In terms of spousal benefits, spouses or former spouses may be eligible for a basic employee death benefit or survivor annuity. There are also children benefits and retirement payout eligibility to consider when planning your retirement.
As your career progresses, you’ll earn credit for your Social Security account and pay taxes for this program in full. Social Security supplies you with many benefits including disability and protection for your survivors. This tax offers benefits for those who are retired, unemployed, or disabled.
Thrift Savings Plan
In addition to the Basic Benefits Program and Social Security, a Thrift Savings Plan is also available. The Thrift Savings Plan provides similar benefits to a traditional 401k plan. Whether or not you choose to contribute to this account, your agency will contribute one percent of your salary. They will also match a certain amount of what you personally contribute each pay period, up to five percent of your salary.
Should I Contribute to A TSP?
A retirement calculator can help you better determine if contributing to a TSP is needed for your desired retirement age and bill requirements.
Planning Your Retirement
For more information on your federal retirement benefits, visit our webinars and online resources available here. Our team is always happy to help you learn more about Thrift Savings Plans and other retirement benefits that can help ensure that you have enough money to retire. Please contact us for more information!