Federal Employee Benefits Analysis

Transcription

1 Federal Employee Benefits Analysis August 4, 2015 Sample Federal Employee Benefits Report MN ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Innovate Financial, Inc. Michael Nakashima 6701 Penn Avenue South Suite 200 Richfield, MN Phone: Fax: Page 1 of 19

2 Disclaimer This report illustrates estimates of cost and benefits for the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS), Federal Employees Group Life Insurance (FEGLI), Federal Employees Health Benefits Program (FEHB), Long Term Care (LTC) Insurance, Social Security System benefits, and the Thrift Plan (TSP). Some estimates are based on assumptions, which may affect the results, and may differ from actual experience. Since future costs and benefits cannot be estimated with absolute certainty, you should not base your financial decisions solely on the estimates of this report, and it is recommended to consult with your personnel office or the Office of Personnel Management (OPM), Retirement Information Office Innovate Financial, Inc. cannot provide retirement analysis and decision information to you. The analysis is provided 'AS IS' without warranties of any kind (including the implied warranties of merchantability and fitness for a particular purpose). No oral or written information or advice provided by Innovate Financial, Inc. and its agents or employees shall create a warranty of any kind regarding this analysis, and you may not rely upon such information or advice. Neither Innovate Financial, Inc. nor anyone else who has been involved in the creation, production, or delivery of this analysis shall be liable for any direct, indirect, consequential, or incidental damages (including, but not limited to, damages for loss of business or personal profits, business or personal interruption, and loss of business or personal information) arising from the use of (or inability to use) this analysis. Innovate Financial, Inc. - Michael Nakashima Page 2 of 19

3 Benefits Analysis Innovate Financial, Inc. - Michael Nakashima Page 3 of 19

4 Personal Federal Employee Benefits - Summary Employment Name: Sample Federal Employee Address: Benefits Report, MN Date of Birth: Age: 55 Service Computation Date: Annual Salary: $81, Hourly Salary: $38.97 Annual Salary Increase: 1.00% (Estimated) Creditable Service: 29 Years 7 Months Sick Leave: 0 Years 11 Months Retirement Retirement System: FERS Employee Type: REGULAR Retirement Type: REGULAR Planned Retirement Date: Annual Salary: $84, Hourly Salary: $40.56 High 3 Average Salary: $83, Annual COLA: 1.20% Creditable Service: 34 Years 6 Months Sick Leave: 0 Years 11 Months Age: 60 Retirement Eligibility: Service and Age Requirements Met Monthly Retirement Annuity - FERS Survivor with a 50% Annuity Annuity Without Survivor*: $2,461 Annuity With Survivor*: $2,215 Survivor's Annuity: $1,231 Cost of Survivor's Annuity*: $246 Thrift Plan (TSP) CURRENT STATUS START SAVINGS WITHDRAWAL Your Annual Contribution: $17, Age: 62 Govt. Annual Contribution: $4, Total Monthly Payments: See TSP Page C Fund : $111, Monthly Payment: F Fund : $110, Total Payout: G Fund : $110, I Fund : $110, S Fund : $110, L Fund : $0.00 Total : $551, Hypothetical Balance at Retirement: $897, Federal Employees Group Life Insurance (FEGLI) COVERAGE AT AGE 55 AT AGE 60 AT AGE 65 Basic: $84, $87, $87, Option A: $0.00 $0.00 $0.00 Option B: $410, $425, $425, Option C: $0.00 $0.00 $0.00 Total: $494, $512, $512, ANNUAL PREMIUM: $2, $8, $8, Innovate Financial, Inc. - Michael Nakashima Page 4 of 19

5 Federal Income Analysis - Monthly Current Income Biweekly Monthly Monthly First Month in Retirement Income Gross Salary $3, $6, $2, Gross Annuity Retirement $24.94 $54.04 $ Survivor Benefit TSP $ $1, $0.00 Early Retirement - Age Penalty TSP Catch-up $0.00 $0.00 $0.00 Unpaid Redeposit Social Security - OASDI $ $ $0.00 Unpaid Deposit Tax - Federal Withholding $ $1, $ Tax - Fed Withholding (Estimated) Tax - State Withholding $ $ $ Tax - State Withholding (Estimated) FEGLI Basic $12.60 $27.30 $ FEGLI Basic FEGLI Optional $94.30 $ $ FEGLI Optional Health Benefit - Medical $ $ Medical - FEHB (Estimated) Health Benefit - Dental $0.00 $0.00 Dental (Estimated) Health Benefit - Vision $0.00 $0.00 Vision (Estimated) Flexible Spending Account $0.00 $0.00 Long Term Care Medicare $45.20 $97.93 Allotments $0.00 $0.00 Other - 1 $0.00 $0.00 Other - 2 $0.00 $0.00 Total Deductions $1, $4, $1, Total Reductions/Deductions (Estimated) $ Net Annuity (Estimated) $1, Social Security / FERS Supplement (Estimated) Net Pay $1, $2, $2, Net Income (Estimated) Taxable Income from Other Sources (Estimated) Non-Taxable Income from Other Sources (Estimated) Net Retirement Income Minus Net Pay Today = -$ Innovate Financial, Inc. - Michael Nakashima Page 5 of 19

6 Annual Income - Government Income Analysis as of Aug Calculations based on a COLA (In Retirement) of 1.20% and a 50% Survivor Annuity. In addition, a Social Security COLA of 1.20% was used. Age Salary Annuity Estimated Estimated Social Security TSP TOTAL Change 57 $81, $81, $82, $82, $ $82, $82, $ $83, $83, $ $84, $84, $ Start Retirement 60 $29, $16, $45, $38, $29, $16, $45, $ $29, $19, $49, $3, $30, $19, $49, $ $30, $19, $50, $ $30, $19, $50, $ $31, $20, $51, $ $31, $20, $52, $ $32, $20, $52, $ $32, $20, $53, $ $32, $21, $53, $ $33, $21, $54, $ $33, $21, $55, $ $34, $21, $55, $ $34, $22, $56, $ $34, $22, $57, $ $35, $22, $58, $ $35, $22, $58, $ $36, $23, $59, $ $36, $23, $60, $ $37, $23, $60, $ $37, $24, $61, $ $37, $24, $62, $ $38, $24, $63, $ $38, $24, $63, $ $39, $25, $64, $ $39, $25, $65, $ $40, $25, $66, $ $40, $26, $66, $ $41, $26, $67, $ $41, $26, $68, $ Innovate Financial, Inc. - Michael Nakashima Page 6 of 19

7 Monthly Income - Government Income Analysis as of Aug Calculations based on a COLA (In Retirement) of 1.20% and a 50% Survivor Annuity. In addition, a Social Security COLA of 1.20% was used. Age Salary Annuity Estimated Estimated Social Security TSP TOTAL Change 57 $6, $6, $6, $6, $ $6, $6, $ $6, $6, $ $7, $7, $69.84 Start Retirement 60 $2, $1, $3, $3, $2, $1, $3, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $2, $1, $4, $ $3, $1, $4, $ $3, $1, $5, $ $3, $1, $5, $ $3, $2, $5, $ $3, $2, $5, $ $3, $2, $5, $ $3, $2, $5, $ $3, $2, $5, $ $3, $2, $5, $ $3, $2, $5, $ $3, $2, $5, $ $3, $2, $5, $ $3, $2, $5, $67.25 Innovate Financial, Inc. - Michael Nakashima Page 7 of 19

8 Annuity and Survivor Benefit Employee Retirement: - Your Annuity at retirement is based on a current salary of $81,340 per year with 1.00% annual pay raises. Retiring at age 60 with 34 years of service will yield a Monthly Retirement Income of: $2,461 Employee Retirement with Survivor Benefit Plan (SBP): - Your Monthly Retirement Income after SBP Cost starting at age 60 will be: $2,215 Survivor's Benefit: - Under SBP, at your death, your widow(er) will receive a Monthly Income of: $1,231 Costs: - Your estimated cost for a Survivor Benefit Plan (SBP) at Retirement will be: Cost Per Month: $246 Cost Per Year: $2,952 - Your Estimated Accumulated Cost for a Survivor Benefit Plan (SBP) at age 70 will be: $34,118 - Your Estimated Accumulated Cost for a Survivor Benefit Plan (SBP) at age 80 will be: $69,233 Important: You should consider taking at least the minimum Survivor Benefit Plan to guarantee your spouse the right to continue the Federal Employee Health Insurance Plan upon your death. If you elect not to participate in the Survivor Benefit Plan, your spouse may face a future need to obtain private sector health insurance at a potentially greater cost. Innovate Financial, Inc. - Michael Nakashima Page 8 of 19

9 Retirement Annuity and Surviving Spouse Benefit Benefits Data Calculations based on a COLA (In Retirement) of 1.20% and a 50% Survivor Annuity. Year Age Monthly Annuity No Survivor [A] Monthly Annuity With Survivor [B] Survivor's Monthly Annuity Monthly Difference [A] - [B] * Annual Difference [A] - [B] Accumulated Annual Difference [A] - [B] , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , * Monthly Annuity No Survivor Minus Monthly Annuity With Survivor Innovate Financial, Inc. - Michael Nakashima Page 9 of 19

10 Thrift Plan Innovate Financial, Inc. - Michael Nakashima Page 10 of 19

11 TSP Disclaimer This calculator is provided for informational purposes only. It is not intended to provide retirement income advice, be used as an investment advisory tool, as a guarantee of monthly payment amounts, as a guarantee of a final account balance or as a guarantee of the duration of the elected monthly payment amount. The monthly income illustrated is based on a gross distribution without consideration for income tax. This report illustrates hypothetical balances at retirement for the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS) Thrift Plan (TSP). Estimates are based on assumptions, which may affect the results and may differ from actual experience. Since future rates of return and performance cannot be estimated with absolute certainty, you should not base your financial decisions solely on the estimates of this report and it is recommended that you consult with your personnel office, the Office of Personnel Management (OPM) or Retirement Information Office Innovate Financial, Inc. cannot provide retirement analysis and decision information to you. No oral or written information or advice provided by Innovate Financial, Inc. and its agents or employees shall create a warranty of any kind regarding this analysis and you may not rely upon such information or advice. The analysis is provided 'AS IS' without warranties or representations of any kind and disclaim all express, implied and statutory warranties of any kind to the user and any third party, (including, but not limited to, the implied warranties of accuracy, timeliness, completeness, merchantability, non-infringement and fitness for a particular purpose). Neither Innovate Financial, Inc. nor anyone else who has been involved in the creation, production or delivery of this analysis shall be liable for any direct, indirect, consequential, or incidental damages (including, but not limited to, damages for lost profits or lost opportunity, loss of business or personal profits, business or personal interruption, loss of business or personal information, special, or punitive damages whatsoever) arising from the use of (or inability to use) this analysis. All figures shown are hypothetical and based on information provided by you. Any change to your benefit elections, salary or other information provided by you could alter these figures. Innovate Financial, Inc. - Michael Nakashima Page 11 of 19

12 Thrift Plan Current Contributions: You are currently contributing a regular amount of $18,000 from your salary and an additional $0 catch-up contributon for a combined Annual Contribution of: $18,000 Continuing Contributions: Your future Thrift Plan estimates are based on your annual salary increases, annual TSP contributions, catch-up contributions and, rates of return of each fund. You have chosen to distribute 20.00% into the C fund earning 7.00%, 20.00% into the F fund earning 2.00%, 20.00% into the G fund earning 2.00%, 20.00% into the I fund earning 4.58%, 20.00% into the S fund earning 7.00%, and.00% into the L- FUND NOT SELECTED. Each quarter, your L-funds allocation will automatically shift to a slightly more conservative mix (less allocated in the C, I, and S funds and more allocated in the F and G funds). Withdrawal of Funds: At the age of 62 years and 1 month you elected a lump sum withdrawal of your funds amounting to: $897,229 Note: Earnings Rates are hypothetical - not guaranteed. The monthly income illustrated is based on a gross distribution without consideration for income tax. Innovate Financial, Inc. - Michael Nakashima Page 12 of 19

13 Thrift Plan Existing There are six separate funds (C, F, G, I, S, and L) in which to accumulate savings. At this time you have accumulated $111, in the C Fund, $110, in the F Fund, $110, in the G Fund, $110, in the I Fund, $110, in the S Fund, and $0.00 in the L Fund for a total of $551, Hypothetical Annual Return Rates The following rates were selected by you for calculating future earnings: C Fund 7.00%, F Fund 2.00%, G Fund 2.00%, I Fund 4.58%, and S Fund 7.00%. Contributions You are currently contributing a regular amount of $17, from your salary and an additional $0.00 catch-up contributon for a combined Annual Contribution of $17, This is divided into the six funds as follows: $3, (20.00%) in the C Fund, $3, (20.00%) in the F Fund, $3, (20.00%) in the G Fund, $3, (20.00%) in the I Fund, $3, (20.00%) in the S Fund, and $0.00 (0.00%) in the L Fund. In addition, the government's contribution of $4, is divided into the six funds as follows: $ (20.00%) in the C Fund, $ (20.00%) in the F Fund, $ (20.00%) in the G Fund, $ (20.00%) in the I Fund, $ (20.00%) in the S Fund, and $0.00 (0.00%) in the L Fund. The total annual contribution of $22, is distributed as follows: $4, (20.00%) in the C Fund, $4, (20.00%) in the F Fund, $4, (20.00%) in the G Fund, $4, (20.00%) in the I Fund, $4, (20.00%) in the S Fund, and $0.00 (0.00%) in the L Fund. In January of each year, you anticipate a 1.00% increase in salary that will raise your annual TSP contribution. Hypothetical Balance at Withdrawal You elected to start withdrawing funds at the age of 62 years and 1 month. The estimated savings in the six funds at that age is $897, Withdrawal Option Selected You elected a lump sum withdrawal of your funds amounting to $897, Innovate Financial, Inc. - Michael Nakashima Page 13 of 19

14 Thrift Plan - Contributions and Hypothetical Summary of Annual Contributions and in the C, F, G, I and S Funds: to End of Year Age Salary Your Contrib Gov Contrib TOTAL Contrib C Fund F Fund G Fund I Fund S Fund TOTAL Estimated ,340 18,000 4,067 22, , , , , , , ,153 18,000 4,108 22, , , , , , , ,975 18,000 4,149 22, , , , , , , ,805 18,000 4,190 22, , , , , , , ,643 18,000 4,232 22, , , , , , , ,500 1,781 9, , , , , , , , , , , , , , , , , , ,229 Summary of Annual Contributions and in the L Funds (C, F, G, I and S): to End of Year Age Salary Your Contrib Gov Contrib TOTAL Contrib C Fund F Fund G Fund I Fund S Fund TOTAL Estimated Innovate Financial, Inc. - Michael Nakashima Page 14 of 19

15 Federal Employees Group Life Insurance Innovate Financial, Inc. - Michael Nakashima Page 15 of 19

16 Federal Employees Group Life Insurance Current Coverage and Costs: Your current coverage (Death Benefit) for FEGLI is: $494,000 Your current total FEGLI Monthly Cost is: $ The Annual Cost is: $2,779 Future Coverage and Costs: At age 60 your coverage (Death Benefit) for FEGLI will be: $512,000 Your total FEGLI Monthly Cost will be: $ The Annual Cost will be: $8,111 The total Accumulated Cost for your FEGLI coverage will be: $22,244 At age 65 your coverage (Death Benefit) for FEGLI will be: $512,000 Your total FEGLI Monthly Cost will be: $ The Annual Cost will be: $8,876 The total Accumulated Cost for your FEGLI coverage will be: $63,564 At age 70 your coverage (Death Benefit) for FEGLI will be: $512,000 Your total FEGLI Monthly Cost will be: $1, The Annual Cost will be: $14,622 The total Accumulated Cost for your FEGLI coverage will be: $113,692 Innovate Financial, Inc. - Michael Nakashima Page 16 of 19

17 Federal Employees Group Life Insurance Summary as of Aug At your current age of 55, your annual salary is $81,340.00, and you expect annual salary increases of 1.00%. Your life insurance coverage includes: Basic (equal to your rounded annual salary plus $2000), Option B (equal to 5 times your annual salary). You plan to retire on at the age of 60. You elected to continue your full Basic coverage at the age of 65. You chose to keep full Option B coverage at the age of 65. FEGLI Premiums and Coverage Age Annual Biweekly Monthly Annual Accumulated Total Basic Option A Option B Option C Salary Premium Premium Premium Cost Coverage 55/56 81, ,779 2,779 84, , ,000 56/57 82, ,813 5,593 85, , ,000 57/58 82, ,813 8,406 85, , ,000 58/59 83, ,847 11,253 86, , ,000 59/60 84, ,881 14,134 87, , ,000 60/ ,111 22,244 87, , ,000 61/ ,111 30,355 87, , ,000 62/ ,111 38,466 87, , ,000 63/ ,111 46,576 87, , ,000 64/ ,111 54,687 87, , ,000 65/ ,876 63,564 87, , ,000 66/ ,876 72,440 87, , ,000 67/ ,876 81,316 87, , ,000 68/ ,876 90,193 87, , ,000 69/ ,876 99,069 87, , ,000 70/ , , ,692 87, , ,000 71/ , , ,314 87, , ,000 72/ , , ,936 87, , ,000 73/ , , ,559 87, , ,000 74/ , , ,181 87, , ,000 75/ , , ,097 87, , ,000 76/ , , ,012 87, , ,000 77/ , , ,927 87, , ,000 78/ , , ,843 87, , ,000 79/ , , ,758 87, , ,000 80/81 0 1, , , ,304 87, , ,000 81/82 0 1, , , ,849 87, , ,000 82/83 0 1, , , ,394 87, , ,000 83/84 0 1, , , ,940 87, , ,000 84/85 0 1, , , ,485 87, , ,000 85/86 0 1, , , ,031 87, , ,000 86/87 0 1, , , ,576 87, , ,000 87/88 0 1, , , ,121 87, , ,000 88/89 0 1, , , ,667 87, , ,000 89/90 0 1, , , ,212 87, , ,000 90/91 0 1, , , ,758 87, , ,000 Average Premium from Age 55 to Age 65 Basic Option A Option B Option C Total Premium Biweekly $51.88 $0.00 $ $0.00 $ Monthly $ $0.00 $ $0.00 $ Innovate Financial, Inc. - Michael Nakashima Page 17 of 19

18 Retirement Characterization Proposed & Delayed Retirement Retirement System Employee Type Retirement Type FERS Regular Regular Input Data Estimated High 3 Average At Retirement 83,387 Estimated High 3 Increase / Year 0.40 % Years of Service at Retirement 34 Months of Service at Retirement 6 Age at Retirement in Years 60 Age at Retirement in Months 0 Creditable Retirement Sick Leave 1,970 Sick Leave to be Save / Year 0 Annual Inflation Factor 0 % COLA (In Retirement) 1.20 % FERS Survivor 50% Annuity Proposed & Delayed Retirement Data Proposed Retirement Delayed Retirement Age In Years Age In Months Service Years Service Months Sick Leave Years Sick Leave Months Estimated High 3 Average 83,387 83,721 84,055 84,392 84,729 85,068 85,408 85,750 86,093 86,437 86,783 87,130 Change in High 3 Average Annual ANNUITY (Before Penalties) 29,533 30,488 34,596 35,663 36,737 37,820 38,911 40,010 41,117 42,232 43,355 44,487 Annual Retire Early Penalty Annual Deposit Penalty Annual Redeposit Penalty Annual Annuity No Survivor 29,533 30,488 34,596 35,663 36,737 37,820 38,911 40,010 41,117 42,232 43,355 44,487 Monthly Annuity No Survivor * 2,461 2,541 2,883 2,972 3,061 3,152 3,243 3,334 3,426 3,519 3,613 3,707 Annual Annuity With Survivor 26,580 27,439 31,136 32,096 33,063 34,038 35,020 36,009 37,005 38,009 39,020 40,039 Monthly Annuity With Survivor * 2,215 2,287 2,595 2,675 2,755 2,836 2,918 3,001 3,084 3,167 3,252 3,337 Annual Survivor Annuity 14,766 15,244 17,298 17,831 18,369 18,910 19,455 20,005 20,558 21,116 21,678 22,244 Monthly Survivor Annuity 1,231 1,270 1,441 1,486 1,531 1,576 1,621 1,667 1,713 1,760 1,806 1,854 Annual Cost of Survivor Annuity * 2,952 3,048 3,456 3,564 3,672 3,792 3,900 3,996 4,104 4,224 4,332 4,440 Monthly Cost of Survivor Annuity * Innovate Financial, Inc. - Michael Nakashima Page 18 of 19

19 Annual Income - Other Sources Cannot print the Annual Retirement Income Other Sources Analysis page - Missing annual data from the Retirement Income and Expense Analyzer ==> Income ==> Other Sources (annual) form. Please check for missing data on this Form, then run this page. Innovate Financial, Inc. - Michael Nakashima Page 19 of 19