“Hello, Will OPM issue me a personal FERS Benefits Summary upon request (i.e., similar to the personalized benefit summary issued by Social Security) based on my VA creditable service and High-3 salary or do I have to wait until 60 days prior to my pension benefit start date to find out the amount of my FERS pension benefit??? By the numbers, I qualify for a VA FERS Deferred retirement, but I would like to confirm the amount of my pension benefit now. Thank you.” – Cory
When you work for the government and plan to retire, it’s important to understand your benefits. Here’s a quick guide to how your pension is calculated and what to expect from the Office of Personnel Management (OPM).
Can You Get a Retirement Estimate Before You Retire?
Unlike Social Security, which gives you an estimate of your future benefits, OPM does not provide a personalized retirement statement before you retire. OPM only gives detailed information about your pension after you retire. This means you’ll need to wait until after you stop working to know exactly how much your pension will be. Human Resources should be able to provide you with an estimate of your benefits, just remember that it is an estimate.
What are some of the Common Mistakes in Retirement Estimates?
Even though OPM can provide an estimate of your retirement benefits, these estimates are not guaranteed. Here are some common mistakes to watch out for:
- Years of Service: Ensure that all your years of service are counted correctly. This includes both your time as a federal employee and any military service you may need to “buy back.” Make sure you have copies of your SF-50’s, this is the only official way verify your years of service.
- High-3 Average Salary: Your pension is based on the highest three years of pay in a row. This is usually your last three years of work, but not always. Make sure you check that these years are correct. Your highest 36 months is the key, depending on your federal service, may not be the last three years.
FERS Supplement: If you bought back military time, it might not count for your FERS Supplement, which is additional money some retirees get before they start receiving Social Security.
What If You’re Taking a Deferred Retirement?
If you’re planning to take a deferred retirement (where you don’t start getting your pension right away), you should contact OPM about 90 days before you want your pension to start. When you leave your job, you will need to fill out a special form. You need to fill out your deferred retirement application.
Be Careful About Timing
Timing is important when you want to start your pension. Make sure you understand the rules for starting your pension, verify your timing and eligibility multiple times to help make sure you can receive the benefits you are owed. For example, if you think your pension will start at age 60 but OPM tells you to wait until age 62, you could miss out on two years of pension payments. Even if you follow OPM’s instructions, it’s your responsibility to make sure the information is correct.
Key Points to Remember:
- OPM will not give you a personal benefit summary before you retire.
- Watch for mistakes in your estimate, especially with your years of service and highest pay calculations.
- If you’re taking a deferred retirement, contact OPM 90 days before you want to start your pension.
- Always check the information you get from OPM to make sure it’s accurate.
References:
U.S. Office of Personnel Management. Federal Employees Retirement System (FERS) Information.