FERS Civil Service Retirement: Planning Required
New Ideas Bring New Complications
It’s human nature that when someone gets a good idea they want everyone to get on board. This also holds true for good ideas in the government.
The Federal Government needed to replace the CSRS retirement system, so they came up with the FERS civil service retirement system instead.
Of course, a retirement system that covers millions of people is destined to be a little complicated.
The FERS civil service retirement system is the proverbial three-legged stool of retirement. It includes Social Security, the basic annuity, and the TSP.
Life’s Attic: Forgotten Financial Knickknacks
In most everyone’s attic of life, they have collected all sorts of accounts, business and asset holdings, equity in the home, active policies, and debts that have long been forgotten or ignored.
These things need to be looked at, sized up, and properly placed into your retirement puzzle.
The Good Handbook Says
…For most people? Who did they poll?
Then it goes on to say, “However, it does deserve some time and attention.”
…Yeah, you think?
HR: Like a Good Neighbor
Regarding your agency’s responsibility for your retirement planning, the handbook says they must supply “all of the information the employee may need about retirement…”
Right. I bet the first thousand pages are an easy read.
“…responsible for giving the employee an all-inclusive presentation of the retirement process that the employee needs for successful retirement planning.”
…Did you get yours?
And here’s my favorite:
“The agency should not advise or counsel the employee what to do.”
In other words, you’re on your own.
Remember the old saying, “A man does not live by savings alone”?
Okay, it’s my saying. But I’m old, and I’m just saying.
The truth is, it’s not enough to just save money for retirement. Being a participant in the FERS civil service retirement system is not retirement planning.
To make sure you are adequately preparing for retirement, speak with a certified financial planner.
For over 30 years, federal employee retirement planning has been a key focus of Medallion Financial Group. We recognize that FERS retirement benefits have extra layers of complexity, such as the Thrift Savings Plan (TSP), 401K, Pension plan, FEGLI and more. It’s easy to get lost in a sea of bad advice when so few people understand the basics. We help with the basics and beyond to enable our clients to get the education and advice they need to retire with confidence.
Our focus is twofold: first and foremost, we are fiduciary advisors. We stand against any violation of laws, values, and ethics. Second, we treat our clients as part of our family, not only those who call Maryland and Georgia home, but clients across the US who have benefited from our reputation of personal service, integrity, and expertise.
We strive to exceed client’s expectations – because we have high expectations of ourselves.