Question
I am a subscriber and big fan of your YouTube channel! I hope to retire at age 56 and 8 months with 28 years of civilian and 4 years of military service, which I have bought back. I understand that the amount of my FERS supplement is calculated only on creditable civilian service, but I will need my military service to meet eligibility requirements. Will my military service be used to meet the MRA + 30 requirement needed to receive the supplement, or will I need two more years of civilian service? Thank you in advance for any clarification you may provide, and please keep posting those great videos!
Answer
Your military time does not count when your FERS supplement is calculated but it does count when it comes to be eligible for the FERS supplement.
So long story short, you are eligible for the FERS supplement if you retire at your MRA (minimum retirement age) or later with at least 30 years of service which you will have because you bought back your military time.
However, in the calculation of your FERS supplement only your civilian service will be used?
Question
I am 62 and planning on retiring ASAP. I was wondering about the estimate they give you on the site where you begin the retirement process. Mine says 2192.53 per month. Is that figure before or after taxes and insurance?
Answer
Generally, pension estimate software will tell you what they are taking out so if they don’t that probably means that they are showing you your gross amount (aka before anything comes out).
You can check out this article for the things that will come out of your pension.
Question
I am 57 years old and retired from the U S Postal Service on June 30, 2021. If I want to take money from my TSP (Thrift Savings Plan) will I be penalized even if I’ve separated from the U S Postal Service?
Answer
As a traditional FERS employee, as long as you leave service in the year you turn 55 or later then you can access your traditional TSP without the 10% early penalty. So it sounds like you shouldn’t have any problems as long as you don’t take any money from your Roth TSP (if you have one) before 59 and ½.
But of course you will have to pay taxes on your any money taken out of your traditional TSP.
