Does Your Advisor Know Your Benefits?
For Federal Employees, coordinating your benefits within the scope of your retirement goals is a critical component of designing a sound, holistic retirement plan. With a Chartered Federal Employee Benefit Consultant and www.FedSmith.com Featured Author on staff, rest assured that plans developed by BrightPathRS leverage your Federal Benefits to maximize federal retirement package provided to FERS and CSRS and LEO employees from all federal agencies.
Chartered Federal Employee Benefits Consultant (ChFEBC)
Federal Employees have their own language of retirement benefits and assets that your Retirement Planner must be familiar with in order to properly coordinate every aspect into one all inclusive Holistic Retirement Plan. As such, one of our founding partners - Tom Walker - proudly maintains his ChFEBC certification. This prestigious designation is designed for Financial Advisors, CPAs, Attorneys, and certain employees of the Federal Government. To be certified as an expert, one must successfully completed an intensive training course and pass a rigorous annual examination covering Federal Employee benefits and the coordination of these benefits with successful retirement planning strategies.
Federal Retirement Systems
Federal Employee Retirement System
For employees hired after 1984, this retirement system is comprised of 3 primary components - the FERS pension, the TSP, and Social Security. The TSP part of FERS is an account that your agency automatically sets up for you. Each pay period your agency deposits into your account amount equal to 1% of the basic pay you earn for the pay period. You can also make your own contributions to your TSP account and your agency will also make a matching contribution. These contributions are tax-deferred. The Thrift Savings Plan is administered by the Federal Retirement Thrift Investment Board.
Civil Service Retirement System
The Civil Service Retirement Act, which became effective on August 1, 1920, established a retirement system for certain Federal employees. It was replaced by the Federal Employees Retirement System (FERS) for Federal employees who first entered covered service on and after January 1, 1987. The Civil Service Retirement System (CSRS) is a defined benefit, contributory retirement system. Employees share in the expense of the annuities to which they become entitled. CSRS employees may increase their earned annuity by contributing up to 10 percent of the basic pay for their creditable service to a voluntary contribution account.
Special Provisions Employees
LEOs and a few legislatively designated groups, including federal firefighters and air traffic controllers, are eligible for enhanced retirement benefits under the Civil Service Retirement System (CSRS), for individuals hired before 1984, or the Federal Employees’ Retirement System (FERS), for individuals hired in 1984 or later. In general, law enforcement personnel are subject to mandatory retirement at age 57, or as soon as 20 years of service have been completed after age 57. The maximum age of entry, which is intended to ensure full retirement benefits upon reaching mandatory retirement age, is typically age 37.
Retirement Benefits Forecast
This custom generated report calculates and analyzes your Federal Retirement Pension, your Federal Employee Group Life Insurance premiums, Thrift Savings Plan, Surviving Spouse Benefit Options, and Retirement Eligibility for both CSRS and FERS employees. This analysis illustrates your current benefit package and accurately projects the cost and coverage of these benefits through the rest of your career into retirement, empowering you with the foresight with which to plan ahead!
Topics Coordinated in BPRS Holistic Planning for Feds:
- TSP Taxation Concerns and Solutions
- TSP Access & Withdrawal
- FEHB (Health Insurance)
- FEGLI (Life Insurance)
- FLTCIP (Long Term Care)
- Survivor Benefits (Spouse and Dependents)
- VCP- Voluntary Contribution Plan (CSRS Only)
- Civilian Deposit/Redeposit Retirement Impact Projections
- Personal Pension Implementation
- Court Ordered Benefit Options
- Retirement Income Comparisons
- Disability, RIF, VERA, Postponed, & Deferred Retirements
- Retirement Eligibility Requirements
- FERS/CSRS Retirement Annuity Forecasting
- Retirement Forms & Benefit Coordination
- Social Security Strategies
- Social Security Benefit Projections
- Social Security Taxation
- WEP - Windfall Elimination Provision (CSRS Only)
- TSP Allocation Strategies & Risk Tolerance