Eligibility for an Annuity Estimate. NARECS Format. Personal Data and Service and Salary History. Retirement Plan Code

Transcription

1 National Retirement Counseling System NARECS Eligibility for an Annuity Estimate NARECS Format Personal Data and Service and Salary History Retirement Plan Code Key Section of the NARECS Estimate Deductions from Annuity Disclaimer Page Sample Annuity Estimates

2 National Retirement Counseling System - NARECS Eligibility for an Annuity Estimate The National Retirement Counseling System, generally referred to as NARECS, is an annuity calculator that provides employees an estimate of retirement benefits. Annuity estimates are automatically mailed twice a year to employees who are currently eligible to retire. Once you are within 3 years of retirement, based on your retirement computation date, or RCD, as shown on your personnel Form 50, you may request a NARECS estimate at any time for preretirement planning purposes. NARECS is designed for full-time employees. If you are a part-time employee or an employee who has significant part-time service, contact the Human Resources Shared Services Center to request a manual estimate. NARECS Format NARECS annuity estimates follow the same format for all retirement plans, but the estimates are specific to the retirement plan coverage of the eligible employee. Disclaimers that accompany the NARECS estimate are unique to the retirement plan code. This module of the workbook presents a CSRS annuity estimate sample and discusses key elements. Differences that occur between CSRS and FERS retirement plans are identified. You should review the other modules that discuss in detail elements shown on the NARECS estimate, such as retirement computation date, years of service, high 3 average salary, survivor benefits, and others. Personal Data and Service and Salary History NARECS uses actual personal data and service and salary information contained in your official records and in the payroll system. Review your NARECS annuity estimate thoroughly to ensure the accuracy of that data. Contact the Human Resources Shared Service Center to change or update your employee profile. Retirement Plan Code The retirement plan code on your NARECS annuity estimate should match the retirement plan code on your pay stub. National Retirement Counseling System NARECS

3 Key Sections of the NARECS Estimate Creditable Service The creditable service section of the NARECS estimate, which appears on the upper left side, includes key dates used in determining eligibility for retirement. The first date indicated is the retirement eligibility date, the earliest date it is possible to meet age and service requirements for optional retirement. The retirement computation date (RCD) is the date used to determine your creditable years of service for retirement purposes. The total time shown in this section of the CSRS estimate is the total of actual years of service and earned sick leave. Here is a difference between CSRS and FERS retirement plan computations. FERS employees do not receive credit for earned sick leave in the total years of service. Employees who have transferred to FERS (retirement code A) may have a sick leave component in the computation based on the prior frozen CSRS component. If you are a FERS employee or have transferred to FERS, it is recommended that you review the FERS modules. Current Position Level And Salary Continuing along the left side of the NARECS annuity estimate, the next section identifies the current grade level and step as well as the current basic salary that the annuity estimate is based on. It also identifies the type of retirement for which the estimate is made, which in this sample is Optional. You should review the modules on various types of retirement and their respective eligibility requirements. National Retirement Counseling System NARECS

4 Key Sections of the NARECS Estimate Effective Date Of Retirement The next section of the NARECS estimate, displayed on a line that extends through the center of the estimate, shows the effective date of retirement. This is the date requested for the NARECS estimate and possibly the date that will be chosen for retirement. This date can be prospective up to 3 years before eligibility for retirement. If you are already eligible for retirement and continue to work for the Postal Service, a NARECS estimate will be generated twice a year automatically, normally March and September, and will be mailed to the address shown in your personnel record. This annuity estimate should not be taken as a suggestion to retire, but rather as a planning tool to help you make the most informed decision about when you want to retire. That choice is totally yours. High 3 Average Salary The high 3 average salary, shown at the bottom of the next section, is determined by using the 3 consecutive years of service that produce the highest average salary. For most employees, this is the last 3 years preceding retirement, so NARECS uses your current salary to project for 3 years and provides you that estimate. OPM will determine your final high 3 average salary, which can be different from that reported on your NARECS annuity estimate. You should know that OPM will calculate your final annuity. Leave and Benefits On the upper right side of the NARECS annuity estimate is a section on leave and benefits. The total retirement contributions shown, including military service deposits, if any, are calculated as of the request date of the NARECS. The annual leave earned balance is based on the earned annual leave balance as of the request date of the NARECS, and the terminal leave payment is calculated on the current basic salary. You should know that the annual leave balance and terminal leave payment may change if you use more annual leave and/or your basic salary changes. Next are the current life insurance coverage and premium and health benefit plan and premium. The premiums shown on the right side of this section represent those that will be calculated by OPM and deducted from the gross monthly annuity after retirement. National Retirement Counseling System NARECS

5 Key Sections of the NARECS Estimate Gross Annual and Gross Monthly Annuity Displayed in the lower right section of the annuity estimate are the gross annual and gross monthly annuities, calculated with and without a survivor benefit. The survivor gross monthly amount shown on the annuity estimate represents a full, or maximum, survivor benefit, which is calculated at 55 percent of the annuity. Other survivor benefit options are available, so you should review the module on survivor benefits. Deductions From Annuity The annuity amounts displayed in the NARECS annuity estimate are gross amounts. Deductions for continuation of benefits and taxes may be required. Deductions from the gross monthly annuity include health benefits, life insurance, federal tax, and possibly state tax. Disclaimer Page Each NARECS annuity estimate contains a disclaimer page. The disclaimers are specific to the retirement plan coverage. They provide additional information and exceptions to rules that may or may not be relevant. You should thoroughly review the disclaimer page of your NARECS annuity estimate to determine which disclaimers, if any, apply to you. It is recommended that you review the other modules in this presentation, which provide detailed information you may find beneficial. National Retirement Counseling System NARECS

6 Sample CSRS NARECS Annuity Estimate USPS FIN NATIONAL RETIREMENT COUNSELING SYSTEM DATE 11/01/2005 HRIS ANNUITY ESTIMATE AS OF PAY PERIOD 22 OF 2005 PAGE 131 REPORT AAF200P1 B/A FDC 060 SUB RET -FICA-CODE 1 LOGON -ID NB0000 CREDITABLE SERVICE RETIREMENT CONTRIBUTIONS 64, (INCL MIL DEP,IF ANY) RETIREMENT ELIGIBILITY DATE 01/22/2001 ANNUAL LEAVE EARNED BAL. 164 RETIREMENT COMPUTATION DATE 02/11/1969 HOURS FORFEITED DATE OF BIRTH 01/22/1946 ANNUAL LEAVE BAL. 164 TERMINAL LEAVE PMT. 3,736 YE ARS MONTHS DAYS INSURANCE COVERAGE DEDUCTIONS TOTAL ACTUAL SERVICE LIFE EMPLOYEE ANNUITANT MONTHLY (TITLE TO ANNUITY IS BASIC 50,000 None DETERMINED FROM THIS OPTION A 10, TOTAL) OPTION B (2X) 96, TIME REPRESENTED BY OPTION C ( X) SICK LEAVE 2 19 (SPOUSE/CHILD) TOTAL TIME 37 9 HEALTH TE RSC: Q EXCEPTIONS: GR/STEP: 01/ O S/P: SALARY: 47, RETIREMENT TYPE: Optional ANNUITY ESTIMATE BASED ON RETIREMENT EFFECTIVE DATE OF 12/01/2005 SALARY HISTORY ANNUAL GROSS FROM TO YRS M NS DAYS RATE PAY GROSS / GROSS 09/03/ /01/ ,396 11,585 ANNUAL / MONTHLY 03/19/ /03/ ,689 21,269 ANNUITY / ANNUITY 11/27/ /19/ ,460 14,454 09/04/ /27/ ,906 10,583 03/06/ /04/ ,282 22,389 WITH / 29,034 2,419 11/15/ /06/ ,095 13,904 WITHOUT 31,960 2,663 09/06/ /15/ ,583 8,545 SURVIVOR 03/08/ /06/ ,271 21,889 BENEFITS 12/01/ /08/ ,042 11,866 SURVIVORS (SPOUSE) ROSS MONTHLY ANNUITY 1,464 HIGH-3 AVERAGE SALARY 45,496 TOTAL 3 JOHN J. SMITH 99 MAIN ST. TITLE: CARRIER (CITY) ANYTOWN, CT FINANCE NO ANYTOWN, CT

7 Sample CSRS Disclaimer HRIS ANNUITY ESTIMATE AS OF PAY PERIOD 19 OF 2006 PAGE 296 B/A C FDC 000 SUB RET-FICA-CODE 1 LOGON-ID NB ESTIMATE BASED ON RETIREMENT EFF ECTIVE DATE SHOWN, ASSUMING RETIREMENT COMPUTATION DATE (RCD) IS CORRECT AND YOU HAVE AT LEAST 5 YEARS CIVILIAN SERVICE IN ADDITION TO ANY MILITARY SERVICE. OFFICE OF PERSONNEL MANAGEMENT (OPM) WILL COMPUTE EXACT AMOUNT OF ANNUITY. 2. ESTIMATE COMPUTED AS IF ALL REQUIRED RETIREMENT CONTRIBUTIONS ARE IN RETIREMENT FUND. NECESSARY DEPOSITS FOR NON -CAREER SERVICE, REDEPOSITS FOR PRIOR CIVILIAN SERVICE, AND POST 1956 MILITARY DEPOSITS NOT IN THE FUND MAY AFFECT ESTIMATE ACCURACY. 3. RETIREMENT CONTRIBUTIO NS REFLECT TOTAL WITHHELD FROM SALARY DURING PRESENT USPS CAREER APPOINTMENT, AND DOES NOT INCLUDE CONTRIBUTIONS MADE AT ANOTHER AGENCY, DURING A PRIOR USPS APPOINTMENT, DEPOSITS OR REDEPOSITS, OR VOLUNTARY CONTRIBUTIONS. 4. HIGH-3 AVERAGE SALARY REFLECT S AVERAGE OF PAST THREE YEARS BASIC SALARY. DOES NOT INCLUDE HIGHER LEVEL (HL), LEAVE WITHOUT PAY HOURS (LWOP), OVERTIME, NIGHT DIFFERENTIAL, AWARDS, ETC. OPM WILL INCLUDE HL AND LWOP AND COMPUTE ON THE CONSECUTIVE 3 YEAR PERIOD PROVIDING THE HIGHEST AVE RAGE IF OTHER THAN THIS PERIOD. 5. IF TOTAL SERVICE EXCEEDS 41 YEARS, 11 MONTHS, ANNUITY IS 80% OF HIGH -3 AVERAGE SALARY. ADDITIONAL ANNUITY ALLOWED FOR UNUSED SICK LEAVE. 6. OPM'S ANNUITY COMPUTATION PRORATES PART -TIME SERVICE PERFORMED AFTER APRIL 6, ESTIMATE DOES NOT INCLUDE PRORATION, WHICH MAY AFFECT ESTIMATE ACCURACY. 7. MILITARY SERVICE AFTER 1956 INCLUDED IN RCD WITHOUT "POST 1956" DEPOSIT TO THE FUND WILL CAUSE ANNUITY TO BE REDUCED AT AGE 62 IF ELIGIBLE FOR A SOCIAL SECURITY BENEFIT. EMPLOYEES WHOSE FIRST CAREER HIRE BEGAN 09/30/82 OR LATER MUST COMPLETE DEPOSIT BEFORE SERVICE CREDIT ALLOWED. 8. SURVIVOR ANNUITY AMOUNT REFLECTS FULL SURVIVOR ANNUITY. 9. HEALTH INSURANCE PREMIUM REFLECTS MONTHLY RATE FOR FEDERAL ANNUITANT. 10. TERMINAL LEAVE PAYMENT REFLECTS EARNED ANNUAL LEAVE BALANCE OR ALLOWED MAXIMUM BALANCE AFTER FORFEITED HOURS. 11. ANNUAL LEAVE AND SICK LEAVE HOURS REPRESENT HOURS EARNED AS OF PAY PERIOD PRIOR TO DATE PRINTOUT ISSUED (DATE IN UPPER RIGHT CORNER), NOT RETIR EMENT EFFECTIVE DATE. 12. PREMIUM COST FOR POST -RETIREMENT LIFE INSURANCE COVERAGE ARE FOR NO REDUCTION OF INSURANCE FOR EACH OPTION, EXCEPT OPTION A, AND BASED ON PRESENT AGE GROUP AS OF ESTIMATED RETIREMENT DATE. LOWER LEVELS OF INSURANCE COVERAGE WIL L REDUCE PREMIUM COSTS. THE CSRS RETIREMENT GUIDE, EL -502, PROVIDES DETAILED INFORMATION ON THE VARIOUS RETIREMENT FACTS NOTED ON THIS PRINTOUT. CONTACT PERSONNEL FOR A COPY OF THE EL -502 OR GO TO ON T HE USPS INTRANET. PUBLICATIONS ON THE FOLLOWING ARE ALSO AVAILABLE: THRIFT SAVINGS PLAN (TSP) SOCIAL SECURITY ADMINISTRATION (SSA) FEDERAL AND STATE INCOME TAXES FOR FEDERAL TAX INFORMATION FEDERAL EMPLOYEES' GROUP LIFE INSURANCE (FEGLI) FEDERAL EMPLOYEES HEALTH BENEFIT PROGRAM (FEHBP) EALTH/ SOCIAL SECURITY INFORMATION AND BENEFIT ESTIMATES MUST BE OBTAINED FROM SOCIAL SECURITY.

8 Sample CSRS Offset NARECS Annuity Estimate HRIS ANNUITY ESTIMATE AS OF PAY PERIOD 19 OF 2006 PAGE 289 B/A C FDC 000 SUB RET -FICA-CODE 5 LOGON -ID NB0000 CREDITABLE SERVICE RETIREMENT CONTRIBUTIONS 7, (INCL MIL DEP,IF A NY) RETIREMENT ELIGIBILITY DATE 05/19/2006 ANNUAL LEAVE EARNED BAL RETIREMENT COMPUTATION DATE 05/19/1976 HOURS FORFEITED DATE OF BIRTH 01/24/1951 ANNUAL LEAVE BAL TERMINAL LEAVE PMT. 1,571 - YEARS MONTHS DAYS INSURANCE COVERAGE DEDUCTIONS TOTAL ACTUAL SERVICE LIFE EMPLOYEE ANNUITANT MONTHLY (TITLE TO ANNUITY IS BASIC 55,000 None DETERMINED FROM THIS OPTION A TOTAL) OPTION B ( X) TIME REPRESENTED BY OPTION C ( X) SICK LEAVE 14 (SPOUSE/CHILD) TOTAL TIME HEALTH RSC: R EXCEPTIONS: GR/STEP: 00/12 S/P: SALARY: 52, RETIREMENT TYPE: Optional ANNUITY ESTIMATE BASED ON RETIREMENT EFFECTIVE DATE OF 11/01/2006 SALARY HISTORY ANNUAL GROSS FROM TO YRS MNS DAYS RATE PAY GROSS / GROSS 09/02/ /01/ ,733 8,642 ANNUAL / MONTHLY 04/15/ /02/ ,830 19,724 ANNUITY / ANNUITY 03/18/ /15/ ,085 3,756 11/26/ /18/ ,594 15,429 10/29/ /26/ ,978 3,673 WITH / 24,935 2,077 09/03/ /29/ ,808 8,681 WITHOUT 27,406 2,283 05/14/ /03/ ,916 16,627 SURVIVOR 03/19/ /14/ ,240 8,133 BENEFITS 10/30/ /27/ ,313 3,923 SURVIVORS (SPOUSE) 09/04/ /30/ ,665 7,881 GROSS MONTHLY ANNUITY 1,255 03/06/ /04/ ,947 24,695 11/15/ /06/ ,708 15,326 11/01/ /15/ ,113 1,909 HIGH-3 AVERAGE SALARY 51,630 TOTAL 3 JOHN J. SMITH 99 MAIN ST TITLE: RURAL CARRIER ANYTOWN, CT FINANCE NO ANYTOWN, CT

9 Sample CSRS Offset Disclaimer HRIS ANNUITY ESTIMATE AS O F PAY PERIOD 19 OF 2006 PAGE 290 B/A C FDC 000 SUB RET-FICA-CODE 5 LOGON -ID NB ESTIMATE BASED ON RETIRE MENT EFFECTIVE DATE SHOWN, ASSUMING RETIREMENT COMPUTATION DATE (RCD) IS CORRECT AND YOU HAVE AT LEAST 5 YEARS CIVILIAN SERVICE IN ADDITION TO ANY MILITARY SERVICE. OFFICE OF PERSONNEL MANAGEMENT (OPM) WILL COMPUTE EXACT AMOUNT OF ANNUITY. 2. ESTIMATE COMPUTED AS IF ALL REQUIRED RETIREMENT CONTRIBUTIONS ARE IN RETIREMENT FUND. NECESSARY DEPOSITS FOR NON -CAREER SERVICE, REDEPOSITS FOR PRIOR CIVILIAN SERVICE, AND POST 1956 MILITARY DEPOSITS NOT IN THE FUND MAY AFFECT ESTIMATE ACCURACY. 3. RETIREMENT CONTRIBUTIONS REFLECT TOTAL WITHHELD FROM SALARY DURING PRESENT USPS CAREER APPOINTMENT, AND DOES NOT INCLUDE CONTRIBUTIONS MADE AT ANOTHER AGENCY, DURING A PRIOR USPS APPOINTMENT, DEPOSITS OR REDEPOSITS, OR VOLUNTARY CONTRIBUTIONS. 4. HIGH-3 AVERAGE SALARY REFLECTS AVERAGE OF PAST THREE YEARS BASIC SALARY. DOES NOT INCLUDE HIGHER LEVEL (HL), LEAVE WITHOUT PAY HOURS (LWOP), OVERTIME, NIGHT DIFFERENTIAL, AWARDS, ETC. OPM WILL INCLUDE HL AND LWOP AND COMPUTE ON THE CONSECUTIVE 3 YEAR PERIOD PROVIDING THE HIGHEST AVERAGE IF OTHER THAN THIS PERIOD. 5. IF TOTAL SERVICE EXCEEDS 41 YEARS, 11 MONTHS, ANNUITY IS 80% OF HIGH -3 AVERAGE SALARY. ADDITIONAL ANNUITY ALLOWED FOR UNUSED SICK LEAVE. 6. OPM'S ANNUITY COMPUTATION PRORATES PART -TIME SERVICE PERFORMED AFTER APRIL 6, ESTIMATE DOES NOT INCLUDE PRORATION, WHICH MAY AFFECT ESTIMATE ACCURACY. 7. MILITARY SERVICE AFTER 1956 INCLUDED IN RCD WITHOUT "POST 1956" DEPOSIT TO THE FUND WILL CAUSE ANNUITY TO BE REDUCED AT AGE 62 IF ELIGIBLE FOR A SOCIAL SECURITY BENEFIT. EMPLOYEES WHOSE FIRST CAREER HIRE BEGAN 09/30/82 OR LATER MUST COMPLETE DEPOSIT BEFORE SERVICE CREDIT ALLOWED. 8. SURVIVOR ANNUITY AMOUNT REFLECTS FULL SURVIVOR ANNUITY. 9. HEALTH INSURANCE PREMIUM REFLECTS MONTHLY RATE FOR FEDERAL ANNUITANT. 10. TERMINAL LEAVE PAYMENT REFLECTS EARNED ANNUAL LEAVE BALANCE OR ALLOWED MAXIMUM BALANCE AFTER FORFEITED HOURS. 11. ANNUAL LEAVE AND SICK LEAVE HOURS REPRESENT HOURS EARNED AS OF PAY PERIOD PRIOR TO DATE PRINTOUT ISSUED (DATE IN UPPER RIGHT CORNER), N OT RETIREMENT EFFECTIVE DATE. 12. PREMIUM COST FOR POST -RETIREMENT LIFE INSURANCE COVERAGE ARE FOR NO REDUCTION OF INSURANCE FOR EACH OPTION, EXCEPT OPTION A, AND BASED ON PRESENT AGE GROUP AS OF ESTIMATED RETIREMENT DATE. LOWER LEVELS OF INSURANCE COVER AGE WILL REDUCE PREMIUM COSTS. 13. CSRS OFFSET EMPLOYEE WILL HAVE CSRS ANNUITY REDUCED AT AGE 62 WHEN ELIGIBLE FOR SOCIAL SECURITY BENEFIT. BENEFIT ESTIMATES AND OFFSETS MUST BE OBTAINED FROM SOCIAL SECURITY. THE CSRS RETIREMENT GUIDE, EL -502, PROVIDES DETAILED INFORMATION ON THE VARIOUS RETIREMENT FACTS NOTED ON THIS PRINTOUT. CONTACT PERSONNEL FOR A COPY OF THE EL -502 OR GO TO ON THE USPS INTRANET. PUBLICATIONS ON THE FOLLOWING ARE ALSO AVAILABLE: THRIFT SAVINGS PLAN (TSP) SOCIAL SECURITY ADMINISTRATION (SSA) FEDERAL AND STATE I NCOME TAXES FOR FEDERAL TAX INFORMATION FEDERAL EMPLOYEES' G ROUP LIFE INSURANCE (FEGLI) FEDERAL EMPLOYEES HEALTH BENEFIT PROGRAM (FEHBP)

10 Sample FERS NARECS Annuity Estimate HRIS ANNUITY ESTIMATE AS OF PAY PERIOD 19 OF 2006 PAGE 1 B/A E FDC 853 SUB RET-FICA-CODE 8 LOGON-ID NB0000 CREDITABLE SERVICE RETIREMENT CONTRIBUTIONS 1, (INCL MIL DEP,IF ANY) RETIREMENT ELIGIBILITY DATE 06/01/ 2006 ANNUAL LEAVE EARNED BAL. 76- RETIREMENT COMPUTATION DATE 03/10/2001 HOURS FORFEITED DATE OF BIRTH 06/01/1944 ANNUAL LEAVE BAL. 76- TERMINAL LEAVE PMT. 1,563- YEARS MONTHS DAYS INSURANCE COVERAGE DEDUCTIONS TOTAL ACTUAL SERVICE LIFE EMPLOYEE ANNUITANT MON THLY (TITLE TO ANNUITY IS BASIC 45,000 None DETERMINED FROM THIS OPTION A TOTAL) OPTION B (5X) 215, TIME REPRESENTED BY OPTION C ( X) SICK LEAVE (SPOUSE/CHILD) TOTAL TIME HEALTH RSC: M EXCEPTIONS: GR/STEP: 04/ D S/P: SALARY: 42, RETIREMENT TYPE: Optional ANNUITY ESTIMATE BASED ON RETIREMENT EFFECTIVE DATE OF 12/01/2006 SALARY H ISTORY ANNUAL GROSS FROM TO YRS MNS DAYS RATE PAY GROSS / GROSS 09/02/ /01/ ,804 10,582 ANNUAL / MONTHLY 03/18/ /02/ ,992 19,129 ANNUITY / ANNUITY 12/24/ /18/ ,535 9,691 11/26/ /24/ ,947 2,951 09/03/ /26/ ,478 8,640 WITH / 13,496 1,124 03/19/ /03/ ,750 16,741 WITHOUT 14,996 1,249 11/27/ /19/ ,542 11,368 SURVIVOR 11/13/ /27/ ,073 1,402 BENEFITS 09/04/ /13/ ,698 6,458 SURVIVORS (SPOUSE) 04/17/ /04/ ,074 12,586 GROSS MONTHLY ANNUITY /01/ /17/ ,185 12/01/ /01/ ,734 HIGH-3 AVERAGE SALARY 37,491 TOTAL 3 Gross reflects act. Earnings JOHN J. SMITH 99 MAIN ST TITLE: RURAL CARRIER ANYTOWN, CT FINANCE NO ANYTOWN, CT

11 Sample FERS Disclaimer HRIS ANNUITY ESTIMATE AS OF PAY PERIOD 19 OF 2006 PAGE 2 B/A E FDC 853 SUB RET-FICA-CODE 8 LOGON -ID NB ESTIMATE BASED ON RETIREMENT EF FECTIVE DATE SHOWN, ASSUMING RETIREMENT COMPUTATION DATE (RCD) IS CORRECT AND YOU HAVE AT LEAST 5 YEARS CIVILIAN SERVICE IN ADDITION TO ANY MILITARY SERVICE. OFFICE OF PERSONNEL MANAGEMENT (OPM) WILL COMPUTE EXACT AMOUNT OF ANNUITY. 2. ESTIMATE COMPUTED AS IF ALL REQUIRED RETIREMENT CONTRIBUTIONS ARE IN RETIREMENT FUND. NECESSARY DEPOSITS FOR NON -CAREER SERVICE, REDEPOSITS FOR PRIOR CIVILIAN SERVICE, AND POST 1956 MILITARY DEPOSITS NOT IN THE FUND MAY AFFECT ESTIMATE ACCURACY. 3. RETIREMENT CONTRIBUTI ONS REFLECT TOTAL WITHHELD FROM SALARY DURING PRESENT USPS CAREER APPOINTMENT, AND DOES NOT INCLUDE CONTRIBUTIONS MADE AT ANOTHER AGENCY, DURING A PRIOR USPS APPOINTMENT, DEPOSITS OR REDEPOSITS, OR VOLUNTARY CONTRIBUTIONS. 4. HIGH-3 AVERAGE SALARY REFLEC TS AVERAGE OF PAST THREE YEARS BASIC SALARY. DOES NOT INCLUDE HIGHER LEVEL (HL), LEAVE WITHOUT PAY HOURS (LWOP), OVERTIME, NIGHT DIFFERENTIAL, AWARDS, ETC. OPM WILL INCLUDE HL AND LWOP AND COMPUTE ON THE CONSECUTIVE 3 YEAR PERIOD PROVIDING THE HIGHEST AV ERAGE IF OTHER THAN THIS PERIOD. 5. OPM'S ANNUITY COMPUTATION PRORATES PART -TIME SERVICE. ESTIMATE DOES NOT INCLUDE PRORATION, WHICH MAY AFFECT ESTIMATE ACCURACY. 6. MILITARY SERVICE AFTER 1956 REQUIRES DEPOSIT TO THE FUND BEFORE SERVICE CREDIT ALLOWED. 7. SURVIVOR ANNUITY AMOUNT REFLECTS FULL SURVIVOR ANNUITY. 8. HEALTH INSURANCE PREMIUM REFLECTS MONTHLY RATE FOR FEDERAL ANNUITANT. 9. TERMINAL LEAVE PAYMENT REFLECTS EARNED ANNUAL LEAVE BALANCE OR ALLOWED MAXIMUM BALANCE AFTER FORFEITED HOURS. E ARNED BALANCE AS OF PAY PERIOD PRIOR TO DATE PRINTOUT ISSUED (DATE IN UPPER RIGHT CORNER), NOT RETIREMENT EFFECTIVE DATE. 10. PREMIUM COSTS FOR POST -RETIREMENT LIFE INSURANCE COVERAGE ARE FOR NO REDUCTION OF INSURANCE FOR EACH OPTION, EXCEPT OPTION A, AND BASED ON PRESENT AGE GROUP AS OF ESTIMATED RETIREMENT DATE. LOWER LEVELS OF INSURANCE COVERAGE WILL REDUCE PREMIUM COSTS. 11. RETIREMENT BENEFITS UNDER FERS ARE FROM THREE SOURCES: BASIC BENEFIT (ANNUITY), SOCIAL SECURITY (SSA), THRIFT SAVINGS (TSP). E STIMATE PROVIDES ANNUITY BENEFIT ONLY. IF THIS IS A FERS DISABILITY ESTIMATE, FIRST YEAR ANNUITY IS 60% OF HIGH -3 AVERAGE SALARY REDUCED BY ANY SOCIAL SECURITY (SS) BENEFITS. SECOND YEAR ANNUITY IS 40% OF HIGH -3 AVERAGE SALARY REDUCED BY 60% OF ANY SS BE NEFIT. ESTIMATE REPRESENTS 40% COMPUTATION PRIOR TO SS REDUCTION. SS INFORMATION AND BENEFITS MUST BE OBTAINED FROM SOCIAL SECURITY ADMINISTRATION. IF THIS IS AN MRA+10 REDUCED BENEFIT ESTIMATE, ESTIMATE INCLUDES 5% REDUCTION/YEAR FOR EACH YEAR UNDER AGE 62. PUBLICATIONS ON THE FOLLOWING ARE AVAILABLE FROM PERSONNEL OFFICES: FEDERAL EMPLOYEES RETIREMENT SYSTEMS (FERS) THRIFT SAVINGS PLAN (TSP) SOCIAL SECURITY ADMINISTRATION (SSA) FEDERAL AND STATE INCOME TAXES FOR FEDERAL TAX INFORMATION FEDERAL EMPLOYEES' GROUP LIFE INSURANCE (FEGLI) FEDERAL EMPLOYEES HEALTH BENEFIT PROGRAM (FEHBP)

12 Sample FERS Transfer NARECS Annuity Estimate HRIS ANNUITY ESTIMATE AS OF PAY PERIOD 19 OF 2006 PAGE 177 B/A B FDC 000 SUB RET-FICA-CODE A LOGON-ID NB0000 CREDITABLE SERVICE RETIREMENT CONTRIBUTIONS 37, (INCL MIL DEP,IF A NY) RETIREMENT ELIGIBILITY DATE 10/18/2005 ANNUAL LEAVE EARNED BAL. 248 RETIREMENT COMPUTATION DATE 08/13/1978 HOURS FORFEITED DATE OF BIRTH 04/18/1950 ANNUAL LEAVE BAL. 248 TERMINAL LEAVE PMT. 5,722 YEARS MONTHS DAYS INSURANCE COVERAGE DEDUCTIONS TOTAL ACTUAL SERVICE LIFE EMPLOYEE ANNUITANT MONTHLY (TITLE TO ANNUITY IS BASIC 50,000 None DETERMINED FROM THIS OPTION A 10, TOTAL) OPTION B (1X) 48, TIME REPRESENTED BY OPTION C (1X) 5,000 2, SICK LEAVE 4 1 (SPOUSE/CHILD) TOTAL TIME HEALTH RSC: P EXCEPTIONS: GR/STEP: 05/ O S/P: SALARY: 47, RETIREMENT TYPE: Optional ANNUITY ESTIMATE BASED ON RETIREMENT EFFECTIVE DATE OF 11/01/2006 SALARY HISTORY ANNUAL GROSS FROM TO YRS MNS DAYS RATE PAY GROSS / GROSS 09/02/ /01/ ,996 7,865 ANNUAL / MONTHLY 03/18/ /02/ ,184 21,494 ANNUITY / ANNUITY 09/03/ /18/ ,997 24,915 03/19/ /03/ ,269 20,622 11/27/ /19/ ,061 14,018 WITH / 13,261 1,105 09/04/ /27/ ,496 10,258 WITHOUT 14,735 1,227 03/06/ /04/ ,872 21,692 SURVIVOR 11/15/ /06/ ,664 13,463 BENEFITS 11/01/ /15/ ,099 1,676 SURVIVORS (SPOUSE) GROSS MONTHLY ANNUITY 613 HIGH-3 AVERAGE SALARY 45,336 TOTAL 3 JOHN J. SMITH 99 MAIN ST TITLE: RURAL CARRIER ANYTOWN, CT FINANCE NO ANYTOWN, CT

13 Sample FERS Transfer Disclaimer HRIS ANNUITY ESTIMATE AS OF PAY PERIOD 19 OF 2006 PAGE 178 B/A B FDC 000 SUB RET-FICA-CODE A LOGON -ID NB ESTIMATE BASED ON RETI REMENT EFFECTIVE DATE SHOWN, ASSUMING RETIREMENT COMPUTATION DATE (RCD) IS CORRECT AND YOU HAVE AT LEAST 5 YEARS CIVILIAN SERVICE IN ADDITION TO ANY MILITARY SERVICE. OFFICE OF PERSONNEL MANAGEMENT (OPM) WILL COMPUTE EXACT AMOUNT OF ANNUITY. 2. ESTIMATE COMPUTED AS IF ALL REQUIRED RETIREMENT CONTRIBUTIONS ARE IN RETIREMENT FUND. NECESSARY DEPOSITS FOR NON -CAREER SERVICE, REDEPOSITS FOR PRIOR CIVILIAN SERVICE, AND POST 1956 MILITARY DEPOSITS NOT IN THE FUND MAY AFFECT ESTIMATE ACCURACY. 3. RETIREMENT CONTRIBUTIONS REFLECT TOTAL WITHHELD FROM SALARY DURING PRESENT USPS CAREER APPOINTMENT, AND DOES NOT INCLUDE CONTRIBUTIONS MADE AT ANOTHER AGENCY, DURING A PRIOR USPS APPOINTMENT, DEPOSITS OR REDEPOSITS, OR VOLUNTARY CONTRIBUTIONS. 4. HIGH-3 AVERAGE SALARY REFLECTS AVERAGE OF PAST THREE YEARS BASIC SALARY. DOES NOT INCLUDE HIGHER LEVEL (HL), LEAVE WITHOUT PAY HOURS (LWOP), OVERTIME, NIGHT DIFFERENTIAL, AWARDS, ETC. OPM WILL INCLUDE HL AND LWOP AND COMPUTE ON THE CONSECUTIVE 3 YEAR PERIOD PROVIDING THE HIGHEST AVERAGE IF OTHER THAN THIS PERIOD. 5. OPM'S ANNUITY COMPUTATION PRORATES PART -TIME SERVICE PERFORMED AFTER APRIL 6, ESTIMATE DOES NOT INCLUDE PRORATION, WHICH MAY AFFECT ESTIMATE ACCURACY. 6. MILITARY SERVICE: IF CAREER HIRE BEFORE 10/1/8 2, MILITARY SERVICE CREDITED IN ANNUITY WITHOUT POST 1956 DEPOSIT, WITH REDUCTION AT AGE 62 IF ELIGIBLE FOR SOCIAL SECURITY(SS). CAREER HIRE 10/1/82 OR LATER: NO ANNUITY CREDIT WITHOUT DEPOSIT. MILITARY SERVICE AFTER TRANSFER TO FERS: NO CREDIT WITHOUT D EPOSIT. 7. ESTIMATE INCLUDES A CSRS COMPONENT BASED ON CSRS FROZEN TIME AND CSRS RULES. 8. SURVIVOR ANNUITY AMOUNT REFLECTS FULL SURVIVOR ANNUITY. 9. HEALTH INSURANCE PREMIUM REFLECTS MONTHLY RATE FOR FEDERAL ANNUITANT. 10. ANNUAL LEAVE BALANCE AND PAYMENT HOURS EARNED AS OF PAY PERIOD PRIOR TO DATE ESTIMATE ISSUED, OR ALLOWED MAXIMUM AFTER FORFEITED HOURS. SICK LEAVE REFLECTS HOURS EARNED AS OF FERS TRANSFER DATE OR PRESENT BALANCE, WHICHEVER IS LOWER. 11. PREMIUM COST FOR POST -RETIREMENT LIFE INSURANCE COVERAGE ARE FOR NO REDUCTION OF INSURANCE FOR EACH OPTION, EXCEPT OPTION A, AND BASED ON PRESENT AGE GROUP AS OF ESTIMATED RETIREMENT DATE. LOWER LEVELS OF INSURANCE COVERAGE WILL REDUCE PREMIUM COSTS. 12. RETIREMENT BENEFITS UNDER FERS ARE FROM THREE SOURCES: BASIC BENEFIT (ANNUITY), SOCIAL SECURITY (SSA), THRIFT SAVINGS PLAN (TSP). ESTIMATE PROVIDES ANNUITY BENEFIT ONLY. FERS DISABILITY ANNUITY IS COMPUTED FIRST YEAR ONLY AS 60% OF HIGH -3 AVERAGE SALARY REDUCED BY SS BENEFIT. SECOND AND OTHER YEARS AS 40% OF HIGH-3 AVERAGE REDUCED BY 60% OF SS. ESTIMATE REPRESENTS 40% COMPUTATION. SSA MUST DETERMINE REDUCTION AMOUNT. IF THIS IS AN MRA+10 REDUCED BENEFIT ESTIMATE, ESTIMATE INCLUDES 5% REDUCTION/YEAR FOR EACH YEAR UNDER AGE 62. PUBLICATIONS ON THE FOLLOWING ARE AVAILABLE FROM PERSONNEL OFFICES: FEDERAL EMPLOYEES RETIREMENT SYSTEM (FERS) CIVIL SERVICE RETIREMENT SYSTEM (CSRS) THRIFT SAVINGS PLA N (TSP) SOCIAL SECURITY ADMINISTRATION (SSA) FEDERAL AND STATE INCOME TAXES FOR FEDERAL TAX INFORMATION FEDERAL EMPLOYEES' GROUP LIFE INSURANCE (FEGLI) FEDERAL EMPLOYEES HEALTH BENEFIT PROGRAM (FEHBP)