Retirement Preparations

There are many emotions that come with the thought of retirement.  While some feel happiness and relief, some others may experience the fear of the anxiousness because of the finality of retirement.

Some questions that should be asked beforehand are:

·       Do I really want to retire?

·       Am I financially ready (can I afford to retire)?

·       Have I put in enough time to retire?

·       What will I do after retiring?

·       Are plans made to work after retirement?

Once you are sure when you are eligible to retire and when you want to retire, contact Human Resources at 877-477-3273 option #5 and request a printout.  This printout will give you an estimate of what annuity monies you will receive upon retiring. You will also find out your creditable service time.   Make sure you have been credited with any civilian or military service deposits.  Check out any other benefits you are entitled to such as Social Security, the Veterans Administration, and pensions from any private sector. 

In the NALC Postal Record, there are Annuity Estimates printed in regard to the CSRS/FERS monthly annuity payments.  Check it out to give yourself an idea of what you will receive for the time in service.  It also lists the survivor reduction as well if you plan on taking that option.  It is important to know that the amounts listed do not include deductions for health benefits, life insurance, union dues, etc. 

The above are all tools to help you make that important retirement decision.

About three to six months before your targeted retirement date, call Human Resources for your retirement booklet.  This will contain information and forms to fill out.  Please read it carefully.  This is the time to decide on health benefits and life insurance options.  This is also the time to pick your retirement date.  If you are under CSRS, you can retire up to the third day of the month and receive your annuity for that month in question.  Under FERS, you must retire by the last day of the preceding month in order to receive your annuity the following month.

TSP is a retirement savings program similar to an IRA or a 401K plan. The money contributed to the TSP is tax-deferred in most cases, meaning taxes do not have to be paid on it until funds are withdrawn during retirement.  Rules are different for CSRS and FERS employees.  The TSP (thrift savings plan) is more valuable to FERS employees.  CSRS employees can use TSP as a way to save extra money for the future and do not receive agency matching or automatic contributions that FERS employees receive.  For FERS employees, TSP is part of a three-tier retirement plan, pension, Social Security, and TSP.   However, TSP investment options, withdrawal and tax information are the same for CSRS and FERS employees.

With TSP, early withdrawal tax of ten percent is imposed on both CSRS and FERS by the IRS if any employee retires or separates before the year in which they reach age 55 and withdraw from their account.  Upon retirement, with TSP, as long as employee reaches their MRA (minimum retirement age) and thirty years of service; or age 60 and twenty years of service; they can withdraw from their funds even before the age of 59 ½.

This is just some information to help you as you pursue that path to retirement.  Good luck!