Azazello1313 Posted February 25, 2009 Share Posted February 25, 2009 have you read any of the links I have provided to you? Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted February 25, 2009 Share Posted February 25, 2009 Could we get this thread pinned? I think it has the potential of being the longest single argument in the history of the Huddle. Quote Link to comment Share on other sites More sharing options...
Czarina Posted February 25, 2009 Share Posted February 25, 2009 I foresee a throwdown in the dojo over this one. Quote Link to comment Share on other sites More sharing options...
darin3 Posted February 25, 2009 Share Posted February 25, 2009 I suppose then this means that you know how the TSP works??? The ass is wrong. No, but I think my 12 years of consulting for one of the largest PERS in the world has made me savvy enough to know how they operate. Quote Link to comment Share on other sites More sharing options...
Double Agent Posted February 25, 2009 Share Posted February 25, 2009 Henry Muto says you're both wrong. Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted February 25, 2009 Share Posted February 25, 2009 I'm not sure what else I can do here. I've already linked directly to the federal government websites defining the FERS pension benefit, how the annuity is calculated, and so on. I guess maybe I can link it one more time: Your basic annuity is computed based on your length of service and "high-3" average pay. The high-3 average pay includes locality pay and annual premiums for standby duty and availability if applicable. Other pay such as differentials, overtime, allowances and others are not included. Generally, your benefit is calculated according to this formula: 1% of your high-3 average pay times years of creditable service If you retire at age 62 or later with at least 20 years of service, a factor of 1.1% is used rather than 1%. To determine your length of service for computation, add all of your periods of creditable service, then eliminate from the total any fractional part of a month (less than 30 days). Depending on the category of retirement benefits you receive, your benefit may be reduced as described in the Retirement Options section. For example, the total could be reduced if you elect to retire at the minimum retirement age before completing 30 years of service. that is a defined benefit. it's a lot smaller than it was for employees under the CSRS, where it was uroutinely over half the employees high-3 salary. that, I assume, is because when they made the switch from CSRS to FERS, they started doing matching TSP (401k) contributions up to 5%. so the emphasis shifted away from the defined benefit pension portion of retirement planning toward the individual account (TSP) portion. but there is still a clear, substantial defined benefit pension under FERS. it is generally equal to 1% of the average of your highest 3 yearly salaries, multiplied by your years of service. so, a FERS employee who retires after 30 years of service, and the average of his last 3 yearly salaries was $100,000....this employee will receive a $30,000 per year FERS annuity benefit. a pension. in addition to whatever he gets from SS and drawing out of his TSP, he gets a defined benefit pension. this is clearly and explicitly spelled out in all of the links I've posted. I challenge you to provide the slightest scintilla of evidence suggesting otherwise. Quote Link to comment Share on other sites More sharing options...
Jimmy Neutron Posted February 25, 2009 Share Posted February 25, 2009 '2/25/09 9:16am[/b]' post='2782578']I'm not sure what else I can do here. I've already linked directly to the federal government websites defining the FERS pension benefit, how the annuity is calculated, and so on. I guess maybe I can link it one more time: that is a defined benefit. it's a lot smaller than it was for employees under the CSRS, where it was uroutinely over half the employees high-3 salary. that, I assume, is because when they made the switch from CSRS to FERS, they started doing matching TSP (401k) contributions up to 5%. so the emphasis shifted away from the defined benefit pension portion of retirement planning toward the individual account (TSP) portion. but there is still a clear, substantial defined benefit pension under FERS. it is generally equal to 1% of the average of your highest 3 yearly salaries, multiplied by your years of service. so, a FERS employee who retires after 30 years of service, and the average of his last 3 yearly salaries was $100,000....this employee will receive a $30,000 per year FERS annuity benefit. a pension. in addition to whatever he gets from SS and drawing out of his TSP, he gets a defined benefit pension. this is clearly and explicitly spelled out in all of the links I've posted. I challenge you to provide the slightest scintilla of evidence suggesting otherwise. I bet he's still looking. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.