Employee Benefits and Retirements 1

Point of Contacts Supervisor: Supervisor: CW3 Priscilla (518) CW3 Priscilla (518) Human Resources Specialist: Human Resources Specialist: Ms Trudy (518) Ms Trudy (518) SSG Trish (518) SSG Trish (518) SSG Mirela (518) SSG Mirela (518) Alma (518) Alma (518)

3 Agenda Federal Employees Health Benefits (FEHB) Thrift Savings Plan (TSP) Federal Employees Group Life Insurance (FEGLI) Employee Benefits Information System (EBIS) Flexible Spending Accounts (FSA) Federal Long Term Care Insurance Program (FLTCIP) Federal Employees Dental and Vision Insurance Program (FEDVIP)

4 Agenda Civil Service Retirement System (CSRS) Federal Employees Retirement System (FERS) Military Deposit (P-56) Retirement Eligibility Beneficiary Forms

5 Federal Employees Health Benefits Eligibility Must be in a position subject to retirement deductions (FERS, CSRS, or CSRS Offset) Must be in a position subject to retirement deductions (FERS, CSRS, or CSRS Offset) Temporary appointments must be longer than 365 days (rate of 102%) Temporary appointments must be longer than 365 days (rate of 102%) Part time employees will pay a higher premium based on the number of hours worked per pay period Part time employees will pay a higher premium based on the number of hours worked per pay period Coverage is NOT automatic Coverage is NOT automatic No waiting period for coverage No waiting period for coverage No pre-existing conditions exclusions No pre-existing conditions exclusions

6 Premium Conversion Pre-tax benefit: Health Insurance premiums will be deducted prior to taxes Pre-tax benefit: Health Insurance premiums will be deducted prior to taxes You will be automatically enrolled in Premium Conversion unless you waive it You will be automatically enrolled in Premium Conversion unless you waive it Premium Conversion allows you to save on Federal taxes, State taxes and Social Security deductions Premium Conversion allows you to save on Federal taxes, State taxes and Social Security deductions

7 FEHB There are many plans available, including nationwide plans There are many plans available, including nationwide plans To see a list of all available plans visit: To see a list of all available plans visit: It is your responsibility to research the available plans and ensure that the plan you select covers your area It is your responsibility to research the available plans and ensure that the plan you select covers your area Normally, the effective date will be the first day of the next pay period after the election is made Normally, the effective date will be the first day of the next pay period after the election is made Notify ABC-C immediately if your FEHB information is not correct on your Leave and Earnings Statement (LES) Notify ABC-C immediately if your FEHB information is not correct on your Leave and Earnings Statement (LES)

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15 FEHB Time Frame As a new employee, you must make an election within 60 days of your 1 st eligibility date or entrance on duty date As a new employee, you must make an election within 60 days of your 1 st eligibility date or entrance on duty date You may make changes outside the 60 day window with a Qualifying Life Event (QLE) or during the annual Open Season You may make changes outside the 60 day window with a Qualifying Life Event (QLE) or during the annual Open Season Open Season begins the 2 nd Monday in November and runs through the 2 nd Monday in December effective on the 1 st full pay period in January Open Season begins the 2 nd Monday in November and runs through the 2 nd Monday in December effective on the 1 st full pay period in January

16 Thrift Savings Plan (TSP) Tax deferred retirement savings/investment plan Tax deferred retirement savings/investment plan Provides the opportunity to increase your retirement income Provides the opportunity to increase your retirement income You must be in a position subject to retirement deductions (FERS, CSRS, or CSRS Offset) You must be in a position subject to retirement deductions (FERS, CSRS, or CSRS Offset)

17 TSP Enrollment You may start, stop or change your contribution amount at any time You may start, stop or change your contribution amount at any time If you are a FERS employee, you will receive Agency Automatic Contributions of 1% If you are a FERS employee, you will receive Agency Automatic Contributions of 1% As a FERS employee, your agency automatically enrolled you in TSP and 3% of your basic pay is deducted from your paycheck each pay period and deposited in your TSP account. As a FERS employee, your agency automatically enrolled you in TSP and 3% of your basic pay is deducted from your paycheck each pay period and deposited in your TSP account.

18 TRADITIONAL TSP Matching As a FERS participant, you will receive agency matching contributions on the first 5% that you contribute per pay period As a FERS participant, you will receive agency matching contributions on the first 5% that you contribute per pay period The first 3% is matched dollar for dollar The first 3% is matched dollar for dollar The next 2% is matched 50 cents for every dollar The next 2% is matched 50 cents for every dollar Contribution Limit for 2014 is $17,500 Contribution Limit for 2014 is $17,500

19 TSP Fund Allocation Until you make your fund allocation on the TSP website, all of your funds will be invested in the G fund Until you make your fund allocation on the TSP website, all of your funds will be invested in the G fund You may re-allocate your TSP funds or transfer funds twice a month. You may make unlimited transfers to the G fund. There is no Open Season You may re-allocate your TSP funds or transfer funds twice a month. You may make unlimited transfers to the G fund. There is no Open Season To allocate your TSP funds you will need to access the TSP website at using your TSP account number or customized user ID and web password To allocate your TSP funds you will need to access the TSP website at using your TSP account number or customized user ID and web password

20 TRADITIONAL TSP Traditional TSP offers two approaches to investing your money: L Funds and Individual Funds Traditional TSP offers two approaches to investing your money: L Funds and Individual Funds L Funds are “Lifecycle Funds” that are invested according to a mix of stocks, bonds and Government securities L Funds are “Lifecycle Funds” that are invested according to a mix of stocks, bonds and Government securities L Funds are based on your “time horizon” L Funds are based on your “time horizon” Individual Funds are the G, F, C, S and I funds Individual Funds are the G, F, C, S and I funds

21 ROTH TSP Roth TSP contributions are taken out of your pay after your salary is taxed Roth TSP contributions are taken out of your pay after your salary is taxed Withdrawals from Roth contributions are tax-free Withdrawals from Roth contributions are tax-free Combined Roth and Traditional TSP contributions cannot exceed $17,500 for 2013 & Combined Roth and Traditional TSP contributions cannot exceed $17,500 for 2013 & Agency contributions are always part of your Traditional TSP balance Agency contributions are always part of your Traditional TSP balance

22 TSP Catch-Up TSP Catch-Up is open to participants who will be age 50 or older in the year they elect to contribute ($5,500 limit for 2014) TSP Catch-Up is open to participants who will be age 50 or older in the year they elect to contribute ($5,500 limit for 2014) You must be contributing the full IRS yearly limit in order to be eligible ($17,500 for 2014) You must be contributing the full IRS yearly limit in order to be eligible ($17,500 for 2014) Agency matching contributions do not apply Agency matching contributions do not apply You must make a new election every year You must make a new election every year You may contribute to a Traditional Catch-Up and a Roth Catch-Up, the total of the two cannot exceed the $5,500 limit You may contribute to a Traditional Catch-Up and a Roth Catch-Up, the total of the two cannot exceed the $5,500 limit

23 TSP You may review the TSP booklet Summary of the Thrift Savings Plan (TSPBK08) on the TSP site at You may review the TSP booklet Summary of the Thrift Savings Plan (TSPBK08) on the TSP site at Call TSP at for additional information Call TSP at for additional information

24 Federal Employees’ Group Life Insurance (FEGLI) Eligibility You must be in a position subject to retirement deductions (FERS, CSRS, or CSRS Offset ) You must be in a position subject to retirement deductions (FERS, CSRS, or CSRS Offset ) You will be automatically enrolled in Basic coverage unless you waive it You will be automatically enrolled in Basic coverage unless you waive it

25 FEGLI Enrollment Elections can be made through the website using EBIS, or by calling ABC at if you are having trouble using EBIS Elections can be made through the website using EBIS, or by calling ABC at if you are having trouble using EBIS You may waive or decrease your coverage at any time You may waive or decrease your coverage at any time You must have Basic coverage in order to elect Optional coverage You must have Basic coverage in order to elect Optional coverage Notify ABC-C immediately if your FEGLI coverage is not correct on your LES Notify ABC-C immediately if your FEGLI coverage is not correct on your LES

26 Basic Life Insurance Equal to annual basic pay rounded to the next higher $1,000 plus an additional $2,000 Equal to annual basic pay rounded to the next higher $1,000 plus an additional $2,000 Example: Example: $51,400 = $52,000 + $2,000 = Amt of Basic $54,000 $51,400 = $52,000 + $2,000 = Amt of Basic $54,000 Provides an extra benefit if you are under 45 yrs of age at no additional cost Provides an extra benefit if you are under 45 yrs of age at no additional cost Extra benefit doubles the amount of basic insurance if you die prior to age 35 Extra benefit doubles the amount of basic insurance if you die prior to age 35 Decreases by 10% each year until there is no extra benefit if you die at age 45 or older Decreases by 10% each year until there is no extra benefit if you die at age 45 or older

27 Optional Life Insurance Option A: $10,000 Option A: $10,000 Option B: Provides an amount 1-5 multiples of your annual basic pay rounded to the next higher $1,000 Option B: Provides an amount 1-5 multiples of your annual basic pay rounded to the next higher $1,000 Option C: Provides coverage for your spouse and eligible children equal to 1-5 multiples; $5,000 per multiple for your spouse and $2,500 per multiple for your eligible children Option C: Provides coverage for your spouse and eligible children equal to 1-5 multiples; $5,000 per multiple for your spouse and $2,500 per multiple for your eligible children

28 FEGLI Time Frame You have 60 days from your 1 st eligibility date or entrance on duty date to elect Optional coverage You have 60 days from your 1 st eligibility date or entrance on duty date to elect Optional coverage If you elect Optional coverage it will be effective the same day (you must be in pay and duty status) If you elect Optional coverage it will be effective the same day (you must be in pay and duty status) If you fail to elect Optional coverage during the 60 day window, you will be allowed to elect additional coverage if you have a life event, during Open Season, or (after 1 year) by submitting to a medical exam, applying to and receiving approval from OFEGLI with an SF 2822 If you fail to elect Optional coverage during the 60 day window, you will be allowed to elect additional coverage if you have a life event, during Open Season, or (after 1 year) by submitting to a medical exam, applying to and receiving approval from OFEGLI with an SF 2822

29 FEGLI Time Frame The regulations now provide a belated election opportunity based on a life event. Within 6 months after an employee becomes eligible to make an election due to a change in family circumstances, an employing office may determine that the employee was unable, for reasons beyond his or her control, to elect or increase Basic/Optional insurance within the time limit. This decision is made by the employing agency; OPM is not involved in the determination. The regulations now provide a belated election opportunity based on a life event. Within 6 months after an employee becomes eligible to make an election due to a change in family circumstances, an employing office may determine that the employee was unable, for reasons beyond his or her control, to elect or increase Basic/Optional insurance within the time limit. This decision is made by the employing agency; OPM is not involved in the determination.

30 FEGLI – Deployed for Contingency Operation If you are designated as emergency essential or deploying in support of a contingency operation, you can elect the following coverage with no QLE or physical: If you are designated as emergency essential or deploying in support of a contingency operation, you can elect the following coverage with no QLE or physical: Can elect Basic only Can elect Basic only Can add Option A Can add Option A Can add Option B or increase current multiples Can add Option B or increase current multiples Enrollment must be made on a SF 2817 Life Insurance Election and sent to the ABC-C, this can’t be processed through EBIS Enrollment must be made on a SF 2817 Life Insurance Election and sent to the ABC-C, this can’t be processed through EBIS

31 Employee Benefits Information System (EBIS) Secured Web based application Secured Web based application Available 24 hours a day Available 24 hours a day Create and process electronic benefit elections Create and process electronic benefit elections Requires use of Common Access Card (CAC) authentication Requires use of Common Access Card (CAC) authentication Requires use of SSN and PIN Requires use of SSN and PIN Allows you to print pending benefits transactions Allows you to print pending benefits transactions ABC-C Automated Systems

32 ABC-C Telephone System To access call toll free To access call toll free TDD: (Hearing Impaired) TDD: (Hearing Impaired) Counselors are available 12 hours per day from 6:00 a.m. – 6:00 p.m. Central Time Counselors are available 12 hours per day from 6:00 a.m. – 6:00 p.m. Central Time

EBIS Elections for FEHB, FEGLI, TSP must be done through EBIS. Elections for FEHB, FEGLI, TSP must be done through EBIS. Exceptions: We process the SF 2809s/SF 2810s for those who already have family coverage and want to add or delete a family member and we process the FEHB for Absent-US. Exceptions: We process the SF 2809s/SF 2810s for those who already have family coverage and want to add or delete a family member and we process the FEHB for Absent-US. 33

34 Flexible Spending Account (FSA) Allows you to pay for certain health/dependant care expenses with pre-tax dollars Allows you to pay for certain health/dependant care expenses with pre-tax dollars If you are eligible for FEHB, you are eligible for FSA If you are eligible for FEHB, you are eligible for FSA You have 60 days from your 1 st eligibility date or entrance on duty date to enroll, or you can enroll during the annual Open Season You have 60 days from your 1 st eligibility date or entrance on duty date to enroll, or you can enroll during the annual Open Season You must reenroll every year You must reenroll every year Use it or lose it Use it or lose it

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37 Flexible Spending Accounts (FSA) To receive more information regarding FSAs, please contact a FSA counselor Telephone: FSAFEDS ( ) Telephone: FSAFEDS ( ) TTY: Mon-Fri 9AM-9PM Eastern Time Closed Weekends and Holidays

38 Federal Long Term Care Insurance Program (FLTCIP) Long term care insurance provides funds if you can no longer perform everyday tasks for yourself Long term care insurance provides funds if you can no longer perform everyday tasks for yourself Care can be provided in a variety of settings: your home, a nursing home, hospice care or other assisted living facilities Care can be provided in a variety of settings: your home, a nursing home, hospice care or other assisted living facilities You may apply within 60 days of your entrance on duty date You may apply within 60 days of your entrance on duty date You may apply at anytime with the longer underwriting procedure You may apply at anytime with the longer underwriting procedure

39 Federal Long Term Care Insurance Program (FLTCIP) Want to talk with a Certified Long Term Care Insurance Consultant? Tel: LTC-FEDS ( ) TTY: Mon - Fri 8 a.m. - 8 p.m. EST Sat 9 a.m. - 5 p.m. EST Sat 9 a.m. - 5 p.m. EST Closed Sun and Federal holidays

40 Federal Employees Dental and Vision Insurance Program FEDVIP Federal Employees Dental and Vision Insurance Program FEDVIP Federal Employees Dental and Vision Insurance Program (FEDVIP) is available to eligible employees and their family members Federal Employees Dental and Vision Insurance Program (FEDVIP) is available to eligible employees and their family members Stand alone Dental and Vision Insurance Stand alone Dental and Vision Insurance Competitive premiums Competitive premiums Pre-tax payroll deduction Pre-tax payroll deduction Can enroll in dental, vision, or both Can enroll in dental, vision, or both You may apply within 60 days of your entrance on duty date or during the Open Season You may apply within 60 days of your entrance on duty date or during the Open Season

41 FEDVIP FEDVIP Self Only Self & One Self & Family Dental Benefits Diagnostic Preventative Emergency Care Restorative Oral/Maxillofacial Surgery Endodontic Periodontics Prosthodontics Orthodontics Vision Benefits Diagnostic Services Preventative Services Eyewear Glasses Contacts

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46 FEDVIP Mon-Fri 9 a.m. – 7 p.m. ET Closed Weekends and Holidays Closed Weekends and Holidays Telephone: FEDS ( ) Telephone: FEDS ( ) TTY: TTY:

Retirements 47

48 Retirement Coverage Determination New employees in a covered position hired after 1 Jan 14, will be placed in the Federal Employees Retirement System-Further Revised Annuity Employees (FERS-FRAE). New employees in a covered position hired after 1 Jan 14, will be placed in the Federal Employees Retirement System-Further Revised Annuity Employees (FERS-FRAE). Employee Contributes 4.4% of basic pay to retirement systemEmployee Contributes 4.4% of basic pay to retirement system Employees in a covered position hired after 1 Jan 13, would have been placed in the Federal Employees Retirement System-Revised Annuity Employees (FERS-RAE) Employees in a covered position hired after 1 Jan 13, would have been placed in the Federal Employees Retirement System-Revised Annuity Employees (FERS-RAE) Employee Contributes 3.1% of basic pay to retirement systemEmployee Contributes 3.1% of basic pay to retirement system

Retirement Coverage Determination Employees excluded from FERS-RAE if any of the following exceptions apply: Employees excluded from FERS-RAE if any of the following exceptions apply: The individual on December 31, 2012, was covered under FERSThe individual on December 31, 2012, was covered under FERS The individual on December 31, 2012, was performing civilian service which is creditable or potentially creditable service under FERSThe individual on December 31, 2012, was performing civilian service which is creditable or potentially creditable service under FERS The individual on December 31, 2012, was not covered under FERS and was not performing civilian service which is creditable or potentially creditable service under FERS, but as of December 31, 2012, had performed at least five years of civilian service creditable or potentially creditable under FERS The individual on December 31, 2012, was not covered under FERS and was not performing civilian service which is creditable or potentially creditable service under FERS, but as of December 31, 2012, had performed at least five years of civilian service creditable or potentially creditable under FERS 49

Retirement Coverage Determination Employees excluded from FERS-FRAE if any of the following exceptions apply: Employees excluded from FERS-FRAE if any of the following exceptions apply: Until OPM issues additional guidance on the retirement coverage rules follow guidance provided in BAL , dated June 4, 2013Until OPM issues additional guidance on the retirement coverage rules follow guidance provided in BAL , dated June 4, 2013 Employees who are subject to CSRS, CSRS-Offset, or FICA-only coverage and who have an opportunity to elect to transfer to FERS will be subject to FERS, not FERS-FRAE, if they elect to transfer to FERS.Employees who are subject to CSRS, CSRS-Offset, or FICA-only coverage and who have an opportunity to elect to transfer to FERS will be subject to FERS, not FERS-FRAE, if they elect to transfer to FERS. 50

Retirement Planning Employees with 5 years of creditable civilian service as of 12/31/1986 or as of their last break, and had a break in service of more than 365 days, you will be placed in the Civil Service Retirement System (CSRS) Offset with a 6 month period to elect FERS Employees with 5 years of creditable civilian service as of 12/31/1986 or as of their last break, and had a break in service of more than 365 days, you will be placed in the Civil Service Retirement System (CSRS) Offset with a 6 month period to elect FERS If you had 5 years of creditable civilian service as of 12/31/1986 or as of your last break, and had a break of less than 365 days, you will be placed If you had 5 years of creditable civilian service as of 12/31/1986 or as of your last break, and had a break of less than 365 days, you will be placed in CSRS in CSRS 51

52 FERS, FERS-RAE, FERS-FRAE Retirement FERS is a 3-tiered retirement system FERS annuity is the smallest component TSP WILL make up the largest portion of your total retirement FERS Annuity Social Security Thrift Savings Plan

53 CSRS Retirement You are only eligible to be placed in CSRS or CSRS Offset if you had 5 years of creditable civilian service as of 12/31/1986 or as of your last break You are only eligible to be placed in CSRS or CSRS Offset if you had 5 years of creditable civilian service as of 12/31/1986 or as of your last break Under CSRS Offset, you are also contributing to Social Security Under CSRS Offset, you are also contributing to Social Security Your CSRS Offset annuity will be offset if you are eligible for Social Security at age 62 or at retirement which ever is later Your CSRS Offset annuity will be offset if you are eligible for Social Security at age 62 or at retirement which ever is later

54 Military Deposit

55 FERS Military Service on/after FERS Post-56 Military Service Amount of Deposit: 3% of basic pay earned + interest Interest may vary by date service was performed Must provide our office with a copy of your Paid in Full letter that you receive from DFAS Must Pay to Receive Credit for Retirement Eligibility and Annuity Computation – FERS only

56 If first hired under CSRS PRIOR to : Full credit for military service from date of retirement until age 62 Full credit for military service from date of retirement until age 62 Optional Deposit Optional Deposit If eligible for Social Security at age 62, military service will be deleted from the CSRS retirement benefit unless military service deposit was paid prior to retirement. If eligible for Social Security at age 62, military service will be deleted from the CSRS retirement benefit unless military service deposit was paid prior to retirement. Amount of Deposit: - 7% of basic pay earned + interest - Interest will vary by date service was performed Amount of Deposit: - 7% of basic pay earned + interest - Interest will vary by date service was performed Crediting Post 1956 Active Duty Military Service Toward CSRS Retirement

57 Crediting Post 1956 Active Duty Military Service to CSRS Retirement If first hired under CSRS AFTER : No credit for military service unless military service deposit is paid No credit for military service unless military service deposit is paid In all retirement cases, military deposit must be paid prior to your separation. In all retirement cases, military deposit must be paid prior to your separation.

58 How Do I Make a Military Deposit? Complete form RI 20-97, Estimated Earnings During Military Service, and send to the appropriate branch of service (addresses and fax numbers are on the ABC-C website). Include copies of all of your DD 214s Complete form RI 20-97, Estimated Earnings During Military Service, and send to the appropriate branch of service (addresses and fax numbers are on the ABC-C website). Include copies of all of your DD 214s Once you receive the completed RI 20-97, or mail it with your DD 214 to an Employee Benefits Specialist in the HRO. The HRO will then send your request to ABC to process. Once you receive the completed RI 20-97, or mail it with your DD 214 to an Employee Benefits Specialist in the HRO. The HRO will then send your request to ABC to process. Payments are made directly to DFAS-Cleveland Payments are made directly to DFAS-Cleveland Ensure a copy of the “Payment in Full” notice is filed in OPF Ensure a copy of the “Payment in Full” notice is filed in OPF The first 2 years are interest free, the 3 rd year is interest deferred The first 2 years are interest free, the 3 rd year is interest deferred

59 Civilian service not covered by retirement deductions (typically service in which you only paid into Social Security) Typically temporary or indefinite service Effect of deposit service upon retirement annuity computation depends upon retirement plan Amount of deposit is equal to deductions that would have been withheld (based on retirement plan) plus interest Civilian Deposit Service

60 Effect of Deposit Service on CSRS Retirement Annuity Prior to Creditable for retirement eligibility Creditable for retirement eligibility Creditable for computation of annuity Creditable for computation of annuity The annual annuity will be reduced by 10% of the amount owed The annual annuity will be reduced by 10% of the amount owed

61 Effect of Deposit on CSRS Retirement Annuity After After Creditable for eligibility to retire; but not creditable for computation of annuity unless deposit is paid

62 FERS Deposit Service Non-Deduction Service prior to Deposit Not Made Deposit Made Credit for eligibility (RSCD) and Annuity Computation No credit for eligibility (RSCD) and Annuity Computation

63 FERS Deposit Service Non-Deduction Service on or after DEPOSIT NOT ALLOWED No credit for Eligibility or Annuity Computation

64 Service for which retirement deductions were withheld but later refunded after a separation from Federal service Effect of redeposit service upon retirement annuity computation depends upon retirement plan and the date refund was received Amount of redeposit is equal to amount of refund plus interest (interest accrues from date of refund check) Redeposit Service

65 Effect of Redeposit Service on CSRS Retirement Annuity If refund was taken prior to : Service is creditable for eligibility to retire and for computation of annuityService is creditable for eligibility to retire and for computation of annuity Annuity is subject to a permanent actuarial reduction based on the employee’s age and the amount owed at the time of retirementAnnuity is subject to a permanent actuarial reduction based on the employee’s age and the amount owed at the time of retirement

66 Effect of Redeposit Service on CSRS Retirement Annuity If refund was taken after : If refund was taken after : Service is creditable for determining eligibility to retire, but not for computation of annuity unless redeposit is paid. Service is creditable for determining eligibility to retire, but not for computation of annuity unless redeposit is paid.

67 FERS Refunded Service FERS Service for which retirement contributions were refunded to you FERS REDEPOSIT IS NOW ALLOWED! Note: FERS with CSRS component*, CSRS rules apply FERS with no CSRS component*, FERS rules apply *5 Years creditable CSRS or potentially creditable CSRS service and elected FERS

68 Effect of Redeposit Service On FERS Retirement Annuity Refunded CSRS Service is credited under FERS if you had less than 5 years Make RedepositDon’t Make Redeposit Creditable toward meeting retirement eligibility Creditable for computing annuity Creditable toward meeting retirement eligibility Not creditable for computing annuity

69 How To Pay A Civilian Deposit Or Redeposit Complete front page of SF 2803/SF 3108, Application to Make Service Credit Payment and send or fax to the ABC-C Complete front page of SF 2803/SF 3108, Application to Make Service Credit Payment and send or fax to the ABC-C ABC-C will calculate an estimated deposit/redeposit amount and mail to OPM ABC-C will calculate an estimated deposit/redeposit amount and mail to OPM OPM will notify you of final deposit/redeposit amount and payment procedures OPM will notify you of final deposit/redeposit amount and payment procedures OPM will send you a receipt and new balance each time payment is made OPM will send you a receipt and new balance each time payment is made Ensure “Payment in Full” notice is filed in OPF Ensure “Payment in Full” notice is filed in OPF

70 FERS Optional Retirement Eligibility requirements for Optional Retirement: Minimum Retirement Age (MRA) with 30 years of serviceMinimum Retirement Age (MRA) with 30 years of service Age 60 with 20 years of serviceAge 60 with 20 years of service Age 62 with 5 years of serviceAge 62 with 5 years of service MRA with at least 10 years but less than 30 years of serviceMRA with at least 10 years but less than 30 years of service 5% reduction for each year under age 62 (permanent reduction)5% reduction for each year under age 62 (permanent reduction) Not entitled to annuity supplementNot entitled to annuity supplement NOTE:NOTE: Must have at least 5 years of creditable civilian serviceMust have at least 5 years of creditable civilian service Military service or sick leave may not be usedMilitary service or sick leave may not be used to reach the 5 year rule to reach the 5 year rule

71 MINIMUM RETIREMENT AGE IF YEAR OFTHE MINIMUM BIRTH IS...RETIREMENT AGE IS... BEFORE & 2 MONTHS & 4 MONTHS & 6 MONTHS & 8 MONTHS & 10 MONTHS & 2 MONTHS & 4 MONTHS & 6 MONTHS & 8 MONTHS & 10 MONTHS 1970 & AFTER 57 NOTE: SINCE EMPLOYEES BORN IN 1948 DID NOT REACH AGE 55 UNTIL 2003, THE MRA UNTIL THAT DATE IS 55

72 CSRS Optional Retirement Eligibility requirements for Optional Retirement: Age 55 with 30 years of serviceAge 55 with 30 years of service Age 60 with 20 years of serviceAge 60 with 20 years of service Age 62 with 5 years of serviceAge 62 with 5 years of service NOTE:NOTE: Must have at least 5 years of creditable civilian serviceMust have at least 5 years of creditable civilian service Military service or sick leave may not be used to reach the 5 year ruleMilitary service or sick leave may not be used to reach the 5 year rule

Deferred Retirement Eligibility: At least 5 years of creditable federal civilian service. Eligibility: At least 5 years of creditable federal civilian service. Retirement becomes available at age 62. Retirement becomes available at age 62. Not eligible to carry health or life insurance through retirement. Not eligible to carry health or life insurance through retirement. Sick leave is not credited. Sick leave is not credited. 73

74 Disability Retirement-FERS To qualify for a disability retirement, you must have at least 18 months of creditable civilian service To qualify for a disability retirement, you must have at least 18 months of creditable civilian service To apply, you must complete regular retirement forms as well as the Disability Retirement forms To apply, you must complete regular retirement forms as well as the Disability Retirement forms You are required to apply for Social Security You are required to apply for Social Security It can take OPM 2-6 months to approve or disapprove your request It can take OPM 2-6 months to approve or disapprove your request Disability retirement annuities ARE subject to Federal taxes Disability retirement annuities ARE subject to Federal taxes

75 Disability Retirement-CSRS To qualify for a disability retirement, you must have at least 5 years of creditable civilian service To qualify for a disability retirement, you must have at least 5 years of creditable civilian service To apply, you must complete regular retirement forms as well as the Disability Retirement forms To apply, you must complete regular retirement forms as well as the Disability Retirement forms It can take OPM 2-6 months to approve or disapprove your request It can take OPM 2-6 months to approve or disapprove your request Disability retirement annuities ARE subject to Federal taxes Disability retirement annuities ARE subject to Federal taxes

Disability – National Guard Technician (P.L ) P.L guarantees a disability retirement to National Guard technicians (NGT) who lose their military membership due to medical disqualification. P.L guarantees a disability retirement to National Guard technicians (NGT) who lose their military membership due to medical disqualification. NGT receive 60% the first year and 40% each year after until it is recalculated at age 62 (FERS). NGT receive 60% the first year and 40% each year after until it is recalculated at age 62 (FERS). 76

Special Provisions Military Reserve Technicians Eligibility: Age 50 with 25 years of service and involuntarily lose military membership, not for cause. Eligibility: Age 50 with 25 years of service and involuntarily lose military membership, not for cause. Note: NGT are not eligible for disability under P.L if they meet the age and service requirements of the Discontinued Service Retirement-NGT. Note: NGT are not eligible for disability under P.L if they meet the age and service requirements of the Discontinued Service Retirement-NGT. Immediate FERS Supplement. Immediate FERS Supplement. 77

Discontinued Service Retirement (DSR)  Eligibility: Separation must be involuntary and not removal for misconduct or delinquency.  Examples: Lose civilian position due to RIF, Reorganization, etc.  Age and Service Requirements: Age 50 with 20 years of service or any age with 25 years of service.  No supplement until MRA. 78

Severance Pay Amount of severance There is a 52 week lifetime limit on receipt of severance pay There is a 52 week lifetime limit on receipt of severance pay One weeks’ pay for every year of service up to 10 One weeks’ pay for every year of service up to 10 Two weeks’ pay for every year after 10 Two weeks’ pay for every year after 10 10% adjustment for each year over age 40 10% adjustment for each year over age 40 79

Severance Pay May be paid to:  Permanent or indefinite technicians (if preceded by qualifying period) on full time or part time work schedule Severance is paid at the same pay intervals as when the technician was employed Severance is paid at the same pay intervals as when the technician was employed 80

Severance Pay Paid to a technician who is involuntarily separated from Federal ‘civilian employment’ other than for inefficiency, misconduct, or delinquency Paid to a technician who is involuntarily separated from Federal ‘civilian employment’ other than for inefficiency, misconduct, or delinquency Resigns after receiving a written general RIF notice announcing abolishment or transfer of all positions within the competitive area or a specific notice proposing his/her removal Resigns after receiving a written general RIF notice announcing abolishment or transfer of all positions within the competitive area or a specific notice proposing his/her removal 81

Severance Pay - Eligibility Requirements The technician did not decline a reasonable offer to a position that is (1) in the same commuting area,(2) in the same ‘agency’, and (3) no more than two grades lower than current grade The technician did not decline a reasonable offer to a position that is (1) in the same commuting area,(2) in the same ‘agency’, and (3) no more than two grades lower than current grade His or her service was at least 12 continuous months His or her service was at least 12 continuous months He or she is not eligible for an immediate annuity He or she is not eligible for an immediate annuity He or she is not receiving injury compensation He or she is not receiving injury compensation 82

Voluntary Early Retirement Authority (VERA) Purpose: To Allow Eligible Employees Not Facing Involuntary Separation to Retire Early Creating Vacancies That Can be Filled by Technicians Who Would Otherwise be Separated or Down Graded To Allow Eligible Employees Not Facing Involuntary Separation to Retire Early Creating Vacancies That Can be Filled by Technicians Who Would Otherwise be Separated or Down Graded 83

Voluntary Separation Incentive (VSIP) Purpose: To encourage eligible employees to retire or resign voluntarily for Federal Service To encourage eligible employees to retire or resign voluntarily for Federal Service Paid in Lump sum or in bi-weekly service Paid in Lump sum or in bi-weekly service 84

Separation Incentives May Be Used To: Reshape and Reduce The Workforce Reshape and Reduce The Workforce ― Avoid Need For Involuntary Separation ― Create Vacancies For The Placement Of Technicians Subject to RIF Separations May Be Offered Any Time/Location Where: Acceptance Results in Aggregate Net Savings Over a 2-year Period And Where Such Savings Avoids Involuntary Separations Acceptance Results in Aggregate Net Savings Over a 2-year Period And Where Such Savings Avoids Involuntary Separations 85

Separation Incentives Eligibility and Conditions - Employee cannot be a reemployed annuitant Employee cannot be a reemployed annuitant Employee must be employed for last 12 months Employee must be employed for last 12 months Employee cannot have a pending or approved disability retirement Employee cannot have a pending or approved disability retirement Employee must be serving on an appointment without time limits Employee must be serving on an appointment without time limits 86

Separation Incentives Ineligibility - Occupying a “hard to fill” position Occupying a “hard to fill” position Receiving a retention allowance Receiving a retention allowance Covered by a Service Agreement Covered by a Service Agreement Occupying a special salary position Occupying a special salary position Accepted another Federal position Accepted another Federal position 87

Separation Incentives Pay incentives to those who voluntarily retire or resign Pay incentives to those who voluntarily retire or resign Lesser of severance pay or $25K Lesser of severance pay or $25K Offered 30 days before RIF announcement Offered 30 days before RIF announcement Creates vacancies for abolishment or placement of surplus technicians Creates vacancies for abolishment or placement of surplus technicians Justified only when/if cost savings result Justified only when/if cost savings result 88

Military Service New technicians should provide copies of DD 214s at time of appointment. New technicians should provide copies of DD 214s at time of appointment. Prior military service is fully creditable toward Leave Service Computation Date. Prior military service is fully creditable toward Leave Service Computation Date. All Title 10 and some Title 32 Active Duty may be creditable toward retirement. All Title 10 and some Title 32 Active Duty may be creditable toward retirement. Under FERS prior active duty and Absent- US service requires a deposit for credit toward retirement. Under FERS prior active duty and Absent- US service requires a deposit for credit toward retirement. 89

90 Death-In-Service If you die while still an active employee, your survivor MAY be entitled to death benefits In the event of a death, survivors need to contact the Human Resources Office (HRO).

91 Beneficiary Forms SF Designation of Beneficiary, Unpaid Compensation of Deceased Civilian Employee SF Designation of Beneficiary, Civil Service Retirement System (CSRS) SF Designation of Beneficiary, Federal Employees Retirement System (FERS) SF Designation of Beneficiary, Federal Employees' Group Life Insurance Program TSP-3 - Designation of Beneficiary, Thrift Savings Plan (TSP)

92 Q uestions