Retirement from IRSRetirement from IRS
AIM-IRS Annual Business Meeting & Training Seminar AIM-IRS Annual Business Meeting & Training Seminar (ABMTS), Cincinnati, OH(ABMTS), Cincinnati, OH
Presenter: Colleen Keeton-SimsPresenter: Colleen Keeton-Sims
Retirement: AgendaRetirement: Agenda
PlanningPlanning IRS plans (CSRS & FERS)IRS plans (CSRS & FERS) Retirement reasonsRetirement reasons Helpful seminarsHelpful seminars Retirement estimateRetirement estimate What may affect benefits?What may affect benefits? Questions & AnswersQuestions & Answers
Retirement: Planning Retirement: Planning
Hopefully you did the following:Hopefully you did the following: Verified your IRS Plan (e.g. Verified your IRS Plan (e.g.
CSRS, FERS) benefitsCSRS, FERS) benefits Answered probing questionsAnswered probing questions Set & met goalsSet & met goals Diversified your portfolioDiversified your portfolio
Retirement: Planning cont. p2Retirement: Planning cont. p2
Answered probing questions: Answered probing questions: When do I plan to retire?When do I plan to retire? What is required to retire?What is required to retire?
Determine comfortable amountDetermine comfortable amount Paperwork or necessary processesPaperwork or necessary processes
Retirement: Planning cont. p3Retirement: Planning cont. p3
Set & met goalsSet & met goals How I obtained the goal How I obtained the goal
Determined critical objectivesDetermined critical objectives Made plan & checklist Made plan & checklist
Tracking purposes Tracking purposes Monitored status Monitored status Checked off tasks metChecked off tasks met Followed up on incomplete items Followed up on incomplete items
marked for rework marked for rework required changerequired change
Retirement: Planning p4Retirement: Planning p4
DiversifiedDiversified Within IRSWithin IRS
TSP contribution using IRS matchTSP contribution using IRS match
Made outside investmentsMade outside investments secured “nest egg” builderssecured “nest egg” builders
Personal savingsPersonal savings Stock market Stock market IRAsIRAs
Retirement: IRS Plans Retirement: IRS Plans
Civil Service Retirement System Civil Service Retirement System (CSRS)(CSRS)
Federal Employees Retirement Federal Employees Retirement System (FERS)System (FERS)
Retirement: What is CSRS?Retirement: What is CSRS?
CSRS CSRS Hired before 1/1/84Hired before 1/1/84 5 (+) years prior federal service5 (+) years prior federal service Regular CSRS employees fundRegular CSRS employees fund
Contribute 7% of basic pay Contribute 7% of basic pay Law enforcement officers (LEOs)Law enforcement officers (LEOs)
contribute 7.5% of basic paycontribute 7.5% of basic pay
Retirement: CSRS OffsetRetirement: CSRS Offset
Hired before 1/1/84Hired before 1/1/84 left federal service over a yearleft federal service over a year returned after12/31/83 returned after12/31/83
Covered by CSRS and Social SecurityCovered by CSRS and Social Security Contributes 7% Contributes 7% Receives same CSRS benefits until age 62Receives same CSRS benefits until age 62
SSA eligible? CSRS annuity offset SSA eligible? CSRS annuity offset Irrevocable transfer option to FERSIrrevocable transfer option to FERS
Break in service 3 days (+)Break in service 3 days (+) During FERS open season During FERS open season
Retirement: What is FERS?Retirement: What is FERS?
Three tier Annuity planThree tier Annuity plan Basic FERS plan administered byBasic FERS plan administered by
Office of Personnel Management Office of Personnel Management (OPM)(OPM)
Social Security Administration (SSA)Social Security Administration (SSA) Thrift Savings Plan (TSP)Thrift Savings Plan (TSP)
Required if hired after 12/31/83 Required if hired after 12/31/83 Alternative for CSRS Offset Alternative for CSRS Offset
Retirement: ReasonsRetirement: Reasons
Retirement eligibleRetirement eligible Offered early retirementOffered early retirement
Reduction in force (RIF)Reduction in force (RIF) Realignment Realignment
DisabilityDisability On the job injuryOn the job injury
workman compensationworkman compensation Non-job related injury or medical Non-job related injury or medical
Retirement: Helpful seminarsRetirement: Helpful seminars
Attend pre-retirement seminar Attend pre-retirement seminar Locally (Check with BeST)Locally (Check with BeST)
Advise manager want to attendAdvise manager want to attend Interactive Video Teletraining Interactive Video Teletraining
IVT broadcasts held via satelliteIVT broadcasts held via satellite 11am-430pm EST:11am-430pm EST:
CSRS: 9/15/10 & 12/8/10CSRS: 9/15/10 & 12/8/10 FERS: 9/16/10 & 12/9/10 FERS: 9/16/10 & 12/9/10
Retirement: Helpful seminarsRetirement: Helpful seminars
Pre-retirement seminars coverPre-retirement seminars cover Retirement benefitsRetirement benefits Social Security (SSA) Social Security (SSA) TSPTSP Federal Employee Health Benefits Federal Employee Health Benefits
Program (FEHBP)Program (FEHBP) Long Term CareLong Term Care Federal Employees’ Group Life Federal Employees’ Group Life
Insurance Program (FEGLIP) Insurance Program (FEGLIP)
Retirement: Estimate reportsRetirement: Estimate reports Retirement estimates Retirement estimates
Where & how to check retirement Where & how to check retirement benefitsbenefits
HR ConnectHR Connect National finance (NFC) www.usda.nfc.gov National finance (NFC) www.usda.nfc.gov
Employee ConnectionEmployee Connection
On ERC page under “My Profile” tab On ERC page under “My Profile” tab http://erc.web.irs.gov/Profile/http://erc.web.irs.gov/Profile/
Click on “View my benefits information” link Click on “View my benefits information” link http://erc.web.irs.gov/ec/eclogin/erc_get_emphttp://erc.web.irs.gov/ec/eclogin/erc_get_emp_benefitslogin.asp_benefitslogin.asp
Enter your SEID and Employee Connection Enter your SEID and Employee Connection PIN or default (last two digits of SSN followed PIN or default (last two digits of SSN followed by first two digits of SSN)by first two digits of SSN)
Retirement: Obtain estimateRetirement: Obtain estimate
Retirement & benefit statementRetirement & benefit statement periodically sent to address on fileperiodically sent to address on file
Request estimate 45-60 days priorRequest estimate 45-60 days prior Employee Resource Center (ERC)Employee Resource Center (ERC)
866-743-5748 option 1 866-743-5748 option 1
or via IRWeb (Intranet) or via IRWeb (Intranet) OS Get ServicesOS Get Services
Retirement: Estimate receivedRetirement: Estimate received
After receive estimate contactAfter receive estimate contact BeST Specialist BeST Specialist
Verify if benefits are availableVerify if benefits are available Select from eligibility optionsSelect from eligibility options
keep or cancel medical with IRSkeep or cancel medical with IRS keep or cancel life insurance with IRSkeep or cancel life insurance with IRS
Avoid delay submit paperwork timelyAvoid delay submit paperwork timely
Retirement: Estimate receivedRetirement: Estimate received
Once get estimate contact SSAOnce get estimate contact SSA (Social Security Administration) (Social Security Administration)
Coordinate benefits Coordinate benefits disability retirementdisability retirement Medicare (Part A, B, C & D)Medicare (Part A, B, C & D) Military (e.g. TRICARE)Military (e.g. TRICARE)
Retirement: Errors & follow upRetirement: Errors & follow up
Errors & follow up:Errors & follow up: Correct errors withCorrect errors with
BeSTBeST SSASSA
Verify all data receivedVerify all data received If projected receipt date pastIf projected receipt date past Received incorrect quote or payReceived incorrect quote or pay
Submit paperwork timely Submit paperwork timely
Retirement: Benefits affectedRetirement: Benefits affected
Full retirement benefits affectedFull retirement benefits affected Seasonal or part time work Seasonal or part time work Leave (excessive)Leave (excessive) Military Military
pro: time served pro: time served con: received retirement payouts con: received retirement payouts
TSP cash out before age 59 ½TSP cash out before age 59 ½
Retirement: Benefits affectedRetirement: Benefits affected
Government Pension Offset Government Pension Offset (GPO)(GPO) Based on spouse’s workBased on spouse’s work
Retirement: Benefits affectedRetirement: Benefits affected
SSA www.ssa.govSSA www.ssa.gov Early retirement eligible (62 years) Early retirement eligible (62 years)
Returns to work before full retire ageReturns to work before full retire age Makes more than allowedMakes more than allowed
Windfall elimination Windfall elimination Based on your work Based on your work Company did not pay into SSACompany did not pay into SSA
Teachers (some districts do but rare)Teachers (some districts do but rare) Postal workersPostal workers
QuestionsQuestions
Thank you for coming! Thank you for coming! The floor is open for questions The floor is open for questions
ReferencesReferences
Government Pension Offiset (GPO) based on Spouse: Government Pension Offiset (GPO) based on Spouse: http://erc.web.irs.gov/DisplayAnswers/AnswerType.asp?http://erc.web.irs.gov/DisplayAnswers/AnswerType.asp?FolderID=5&CategoryID=2&SubCategory=193&QuestionID=1706FolderID=5&CategoryID=2&SubCategory=193&QuestionID=1706
IVT: IVT: http://irweb.irs.gov/AboutIRS/bu/cl/comm/tv/training/csrsfers/default.aspx http://irweb.irs.gov/AboutIRS/bu/cl/comm/tv/training/csrsfers/default.aspx
Windfall elimination based on you not spouse: Windfall elimination based on you not spouse: http://erc.web.irs.gov/DisplayAnswers/AnswerType.asp?http://erc.web.irs.gov/DisplayAnswers/AnswerType.asp?FolderID=5&CategoryID=2&SubCategory=193&QuestionID=1705FolderID=5&CategoryID=2&SubCategory=193&QuestionID=1705
Social Security Administration (SSA) www.ssa.govSocial Security Administration (SSA) www.ssa.gov
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