Frequently Asked Questions (FAQ)
At Plan Your Federal Retirement, we specialize in helping federal employees navigate their benefits and retirement options. Below are answers to the most common questions we receive.
General Questions
What is Plan Your Federal Retirement?
We are a financial professional team specializing in helping federal employees maximize their FERS (Federal Employees Retirement System) and CSRS (Civil Service Retirement System) benefits. We aim to provide clear, actionable guidance so you can confidently retire.
Who do you work with?
We work extensively with federal employees, helping them understand their benefits, retirement options, and tax implications. Whether you’re early in your career, nearing retirement, or already retired, we can help you make informed decisions.
What if my spouse works in the private sector?
If your spouse works in the private sector, your federal retirement planning may require additional considerations to ensure both of you are financially prepared. Our financial professionals can assist you with knowing what planning considerations you need to take into account: retirement income, TSP/401(k), survivor benefits, health benefits and more.
Do you work for the federal government?
No, we are an independent firm specializing in federal benefits and retirement planning. We are not affiliated with any government agency, OPM (Office of Personnel Management), or TSP (Thrift Savings Plan). Plan Your Federal Retirement is a subsidiary of the Registered Investment Advisory firm, Shilanski & Associates Inc.,
Do you work with people all over?
We work with federal employees all over the United States remotely. No matter where you’re located, our team can help you navigate your FERS benefits, TSP, Social Security, and retirement planning through virtual consultations, phone calls, and secure online tools. Our goal is to provide clear, actionable guidance so you can retire with confidence—no office visit required but encouraged, we even make fresh baked cookies when you stop by!
FERS & CSRS Retirement
When can I retire under FERS?
Your eligibility depends on your Minimum Retirement Age (MRA) and years of service:
- MRA + 30 years (Immediate Retirement)
- Age 60 + 20 years
- Age 62 + 5 years
- MRA + 10 years (Reduced Benefit)
How do I calculate my FERS pension?
The formula for your FERS pension is:
(High-3 Salary) × (Years of Service) × (1% or 1.1%)
- If you retire at age 62 with at least 20 years, the multiplier increases to 1.1% instead of 1%.
What is the difference between FERS and CSRS?
CSRS is the older retirement system (for employees hired before 1984) and does not include Social Security. FERS includes three components:
- FERS Pension
- Social Security Benefits
- Thrift Savings Plan (TSP)
What happens to my pension if I leave federal service before retirement?
If you have at least 5 years of creditable service, you may be eligible for a deferred retirement at age 62. If you have fewer than 5 years, you will not qualify for a pension but can withdraw your FERS contributions (talk with a benefits expert before you do so though!).
Thrift Savings Plan (TSP)
How much should I contribute to my TSP?
As much as you can! Your FERS Retirement is a “three-legged stool” that consists of your pension, social security, and personal retirement savings – like the TSP. The more you are able to contribute during your working years, from our perspective, the better. Work with your financial advisor to learn how best to strategize your retirement savings contributions and to know what is appropriate for your individual situation.
Should I choose the Traditional or Roth TSP?
- Traditional TSP: Contributions are tax-deferred, meaning you pay taxes when you withdraw.
- Roth TSP: Contributions are after-tax, but withdrawals (including growth) are tax-free in retirement.
Remember, the TSP is a tool and like all tools you need to know how and when to use them. There are benefits to both the Traditional and ROTH. We love tax free money but to know if that is the best strategy for you, talk with someone one on one. There is no “one size fits all” when it comes to YOUR retirement.
What happens to my TSP when I retire?
You can leave your money in the TSP, transfer it to an IRA, or take withdrawals. Your withdrawal strategy should factor in taxes, required minimum distributions (RMDs), and your overall retirement plan.
We see Feds make irreversible mistakes when it comes to the best strategies to using their TSP. You will really want to strategize your retirement income timeline and know-how, when, and what to do with your TSP when the time comes.
Keep in mind, that one aspect that most fed retirees neglect to consider in retirement are their tax liabilities!
Social Security & FEHB
When should I start collecting Social Security?
Most federal employees under FERS qualify for Social Security. You can start as early as age 62, but delaying until Full Retirement Age (FRA) or age 70 increases your benefit.
When to take social security depends on your cash flow in retirement. If you think of your benefits (pension, FERS special retirement supplement, social security, and your TSP) as levers, you want to know when to pull down on one and back off another. This is all part of designing a retirement income plan that makes sense for you and your family.
Can I keep my FEHB health insurance in retirement?
You can keep FEHB in retirement if you meet the eligibility requirements of being eligible for an immediate retirement pension (OPM calls this an annuity) and you have been enrolled in FEHB for at least 5 years before retiring.
Now, keep in mind your premiums when you were working were pre-tax. In retirement, your premiums are post-tax.
What happens to my FEHB if I enroll in Medicare?
You can keep FEHB even after enrolling in Medicare. Medicare, by law, must become the primary insurer and your FEHB becomes the secondary.
Medicare has several Parts (labeled alphabetically). You need to work with an advisor to understand which ones to enroll in to avoid penalties later, by making the wrong decision.
Survivor Benefits & Life Insurance
Should I elect a survivor annuity for my spouse?
If you want your spouse to continue receiving a portion of your pension after you pass, you must elect a Survivor Benefit when you retire. This decision affects your monthly pension, so consider it carefully.
You only get to retire from the government (hopefully) one time so make sure you fill the forms out correctly.
What happens to my life insurance (FEGLI) in retirement?
You can continue Federal Employees’ Group Life Insurance (FEGLI) into retirement, but costs increase. Many retirees explore private life insurance options before they retire.
Taxes & Retirement Planning
How is my FERS pension taxed?
Your FERS pension is fully taxable at the federal level, and state taxes depend on where you live. Some states do not tax federal pensions so you want to check on this individually.
Do I have to pay taxes on my TSP withdrawals?
- Traditional TSP: Yes, withdrawals are taxed as ordinary income.
- Roth TSP: Withdrawals are tax-free if you meet the requirements.
How can I reduce my tax burden in retirement?
Talk with your financial advisor about what is right for you. Some strategies include:
- Roth conversions before RMDs
- Spreading out withdrawals from different accounts
- Using tax-free investments (like Roth TSP & Roth IRAs)
Working with Us
How do I schedule an appointment?
Click the Schedule a Consultation button on our website to book a meeting with one of our federal retirement specialists.
Do you charge for consultations?
Yes, we charge an initial fee for your first consultation with a financial advisor who specializes in your federal benefits. Our advisors provide expert guidance tailored to your retirement and financial planning needs. During this consultation, our goal is to answer your questions and deliver as much value as possible. We will review where you are and where you want to go. We will point out any pitfalls you may have overlooked and, often, act as a sounding board for financial decisions.
If you want to work with our firm to get you to and through retirement, your advisor can discuss those options with you if appropriate.
How can I learn more?
- Podcast – Tune in to our podcast, where we discuss federal benefits, retirement strategies, and financial planning insights tailored for federal employees.
- YouTube Channel – Watch our in-depth videos covering FERS, TSP, Social Security, and other key retirement topics.
- Newsletter – Subscribe to our newsletter for expert tips, updates on federal benefits, and strategies to help you retire with confidence.
- On-Demand Classes – where we break down complex federal benefits and retirement planning strategies into easy-to-follow sessions.