Civilian Human Resources Agency. Army Benefits Center-Civilian

Transcription

1 Civilian Human Resources Agency Army Benefits Center-Civilian V4 1/2/18 1

2 Introduction Mission Statement: The Army Benefits Center - Civilian delivers quality service to all customers by providing the necessary tools and knowledge to manage their benefits and entitlements. We are a center of excellence for our dedicated employees, loyal customers and participating state and federal partners. We are committed to providing world class service by staying abreast of all changes in the Federal benefits arena. ABC-C Service: Provide advisory services and process transactions for: Federal Employees Health Benefits (FEHB) Federal Employees Group Life Insurance (FEGLI) Thrift Savings Plan (TSP) Retirement (FERS & CSRS) Survivorship (Death Claim Processing) 2

3 3 ABC-C Systems Employee Benefits Information System (EBIS) Web Based Customer friendly Available 24 hours a day (with CAC access) Secure Site Requires use of SSN and PIN Ability to read at convenience and print screens Can process benefit transactions without specialist assistance Ability to print benefit forms Estimate calculators (uses LV SCD Only) ABC-C Website:

4 4 ABC-C Systems Telephone Lets you connect with an actual person (Specialist) Available to those without computer access Specialists are available 10 hours per day, Monday through Friday, except Federal Holidays (7 a.m. to 5 p.m. Central Time) ABC-C toll-free telephone number is Queue asks for SSN or EDIPI number, but also can choose Option #3 for National Guard Personnel

5 5 ABC-C Systems EBATS Employee Benefits Automated Tracking System Allows you to track your actions at ABC-C

6 6 ABC-C Systems EBATS

7 Retirement Timeliness FY 2017 Total: 1052 FY 2017 (1 Oct Sep 2017) MET NOT MET > 60 DAYS 9 7% DAYS 4 4% % % % 98 96% Goal: Complete retirement packets NLT 5 working days prior to DOR DAYS 8 4% % % 1-15 DAYS % ON OR AFTER 0 0% % 7

8 8 Continuing Challenges Late / Past Due retirement application Unhealthy retirement applications per BAL Military Deposits processed incorrectly prior to retirement Federal Erroneous Retirement Coverage Corrections Act (FERCCA)

9 9 On the Horizon YouTube Videos for retirement New and updated EBIS

10 10 Any Questions?

11 11 Retirement Planning

12 12 Retirement Planning Early Career: 25 + years to retirement Contribute to TSP Enroll in benefits (FEHB, FEGLI, FEDVIP, FSA) Pay civilian & military deposits New Employee Orientation briefing - tation.htm Mid Career: years to retirement Adjust benefits based on life situation Review level of TSP participation & allocation between the funds

13 13 Retirement Planning Late Career: Less than 10 years prior to retirement: Use calculators in EBIS to get a rough estimate of annuity Determine income needed in retirement using the Federal Ballpark E$timate calculator Adjust TSP contributions & other savings based on results from calculators Five years to retirement: Verify eligibility to continue FEHB & FEGLI into retirement Request a retirement estimate Maximize TSP contributions & other savings

14 14 Retirement Planning Links Federal Ballpark E$timate: Retirement information & services provided by OPM: U.S. Financial Literacy Education Commission website: Army Benefits Center Civilian EBIS:

15 15 CSRS New employees first hired in covered position prior to Jan 1, 1984 Contribute 7% of salary to CSRS Do not contribute to Social Security Can contribute to TSP up to IRS limit ($18,500 for 2018), but no agency matching Lose eligibility for CSRS coverage if there is a break in service ending on or after Jan 1, 1984 of more than 1 year

16 16 CSRS Interim Employees first hired on/after Jan 1, 1984 & certain rehires Reduced CSRS contribution rate of 1.3% Contribute to Social Security On Jan 1, 1987, employees with CSRS Interim coverage changed to: CSRS Offset if you had at least 5 years of potentially creditable civilian service FERS if you had less than 5 years of potentially creditable civilian service

17 17 CSRS Offset Employees who were in CSRS Interim and had at least 5 years of potentially creditable civilian service as of Dec 31, 1986 Employees who are or became subject to Social Security due to break in service & have at least 5 years of potentially creditable civilian service Reduced CSRS rate of 0.8% Contribute to Social Security CSRS retirement benefits are offset by the value of your CSRS Offset service in your Social Security benefits

18 18 CSRS Offset You will receive a full CSRS annuity at retirement that is computed under the CSRS rules HOWEVER, your annuity will be reduced when you become eligible to receive Social Security benefits CSRS Offset annuity is reduced by the portion of your total Social Security benefits that is payable based on Federal service performed after 1983 If you never become eligible for Social Security benefits based upon your own employment, there is no offset

19 19 CSRS Offset Example: Employee has 5 years and 8 months of Offset service The CSRS Offset is determined by taking the lesser of the 2 below computations Computation #1 Soc Sec monthly benefit w/ Federal Offset svc.$1,800 Soc Sec monthly benefit w/o Federal Offset svc...$1,500 Computation #2 Soc Sec amount with Federal earnings = $1,800 x 6 years* = $10,800 / 40 = $270 (*) Nearest whole year to 5 years 8 months Difference $ 300 Result: The reduction in this case would be $270

20 20 RSCD Retirement Service Computation Date Used to determine retirement eligibility and to calculate retirement annuity (Pension) May not be the same as your Leave SCD (SCD that appears on your SF 50 & LES) Not all service that is creditable for leave is creditable for retirement

21 21 RSCD Examples of service that is creditable for leave but not for retirement: Non-Appropriated Fund (NAF) service on a temporary appointment For retired military, campaign or combat service if retired military pay is not being waived If hired on/after Oct 1, 1982, military service for which deposit has not been paid

22 22 Civilian Deposit / Redeposit

23 Deposit Service Any period of potentially creditable service during which retirement deductions are not withheld: Generally, non-career time such as temporary or indefinite service Also known as non-deduction service Service that is now considered Federal employment, due to a change in the law that allows credit for retirement annuity computation purposes (Peace Corps, VISTA) Amount of deposit: 7% of earnings + interest Interest will vary by the date the service was performed 23

24 24 Deposit Service Non-Deduction Service PRIOR TO Non-Deduction Service ON or AFTER Deposit Made Deposit NOT Made Deposit Made Deposit NOT Made Credit for Eligibility and Annuity Computation Credit for Eligibility and Annuity. Annuity reduced by 10% of Deposit Credit for Eligibility and Annuity Computation Credit for Eligibility but No credit for Annuity Computation

25 25 Redeposit What is redeposit service? A sum of money paid into the Retirement System by an employee or survivor to cover a period of service during which deductions were withheld but later refunded. Cost is the amount of refund plus interest Note: Redeposits may be made before or after retirement

26 26 Redeposit Service DEFINED AS: FERS Service for which retirement contributions were refunded to you! Cost is the amount of refund plus interest Note: FERS with CSRS component, CSRS rules apply FERS with no CSRS component, FERS rules apply

27 27 Redeposit Contributions Refunded For Service Ended BEFORE & Not Disability Retirement or Death In Service Contributions Refunded For Service Ended On or AFTER & Not Disability Retirement or Death In Service Redeposit NOT Made Redeposit Made Redeposit NOT Made Redeposit Made Credit for Eligibility and Annuity Computation Annuity Actuarially Reduced Credit for Eligibility and Annuity Computation Credit for Eligibility but NO credit for Annuity Computation Credit for Eligibility and Annuity Computation

28 Interest Rates YEAR RATE YEAR RATE YEAR RATE YEAR RATE YEAR RATE % % % % % % % % % % % % % % % 1.625% % % % % % % % % % % % % % % % % % Before % 4%

29 29 Paying Deposit / Redeposit Complete front page of the SF 2803, Application to Make Deposit or Redeposit (CSRS), sign it, and send to the ABC-C ABC-C will calculate an estimated deposit/redeposit amount and send to OPM OPM will notify employee of final deposit/redeposit amount and payment procedures Ensure notice of Payment in Full is filed in eopf More information is available on the ABC-C website at:

30 30 Deposit or Redeposit General Information If you have already submitted a civilian deposit or redeposit and do not remember how much you still owe: scbillings@opm.gov You will need to include your CSD number If you need proof your civilian deposit or redeposit is already paid in full, then screceipts@opm.gov You will need to include your CSD number

31 31 Military Deposits Military Buyback / Post 56

32 32 Military Deposits Title 10 Service called to service by the President (Active Duty or Reserve Time) Title 32 Service service under the State (Service Schools, NCO and Officer Courses usually fall under Title 32). Not creditable unless under USERRA Law Must be Honorable DD 214 with character of service Mil Orders MUST be accompanied by statement of service which reflects character of service and time lost

33 33 Pre 1 Jan 1957 Service No deposit required for creditable military service performed prior to 1 January 1957

34 34 Military Deposit IN RECEIPT OF MILITARY RETIRED PAY Based on Non Combat Disability or Length of Service Based on Combat Disability or Chapter 1223, Title 10 (Reserves) No Credit unless military retired pay is waived & deposit is paid Must pay to receive credit for eligibility (RSCD) & annuity computation

35 35 Military Deposit Employee with Military Service after Hired BEFORE Employee with Military Service after Hired On or AFTER YES Pay Post- 56 for credit at age 62 OR NO NO Post- 56 Payment Required Eligible for Social Security? Must pay Post-56 to receive credit at time of Retirement Amount of Deposit: 7% of base pay earned + interest (2 yrs interest free) (Interest will vary)

36 36 Paying Military Deposits Complete RI 20-97, Estimated Earnings During Military Service, and send to the appropriate branch of service (addresses are on the ABC-C website). Include copies of all of your DD 214s with character of service. Upon receipt of estimated earnings (ensure dates are correct), include your DD 214, SF 2803 page 1 and forward to ABC-C. The ABC-C will calculate an estimate of the deposit owed and forward to DFAS. DFAS will finalize amount and advise employee of payment options. Request/Receive Paid in Full letter, and place in eopf. Military deposits must be paid in full prior to separation. More Information is available at:

37 37 Significant Information A period of service includes consecutive periods of service where there is no break in service, but does not include any lost time. For military purposes, even a 1-day break separates service into 2 periods. All consecutive periods of military service must be paid, cannot pay for one period of the consecutive service. Any military service prior to starting as a civilian must be under Title 10 to be creditable / eligible to be bought back. Military service MUST be honorable (Ch 22A2.1-2F CSRS FERS Handbook). Payroll records (Certified time cards) need to be included when Double Dipping. These should be kept in the EOPF. Verify dates on Estimated Earnings and on Paid in Full Letters.

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41 41 Retirements

42 42 Types of Retirements Optional Retirement Voluntary Early Retirement Authority (VERA) Discontinued Service Retirement (DSR) Deferred Retirement Disability Retirement Public Law (National Guard dual-status disability retirement)

43 43 General Eligibility Have at least 5 years of creditable civilian service with the Federal government Have been employed under CSRS for at least 1 year out of the last 2 years preceding your final separation from Federal employment Must separate from a position subject to CSRS Coverage

44 44 Optional Retirement Also referred to as a Voluntary Retirement Eligibility requirement for Optional Retirement Age 55 with 30 years of service Age 60 with 20 years of service Age 62 with 5 years of service Must have at least 5 years of creditable civilian service Military service or sick leave may not be used to reach the five year rule Annuity accrues the day after your retirement if your retirement is effective on the last day of the month or the first three days of the month Annuity accrues the first day of the following month if your retirement is effective after the third day of the month

45 45 VERA Voluntary Early Retirement Authority Age 50 with at least 20 or more years of service* Any age with at least 25 years of service* Agency / Installation must approve Effect on employee benefits: 2% reduced annuity for each year under age 55 *Must include 5 years of creditable civilian service

46 46 DSR Discontinued Service Retirement Age 50 with at least 20 or more years of service Any age with at least 25 years of service Must include 5 years of creditable civilian service Must receive a specific written notice of a proposed involuntary separation from your Agency/Installation 2% reduction of annuity for each year under the age of 55 Annuity starts day after separation Not eligible for VSIP or severance pay

47 47 Deferred Retirement Leaving Federal service before eligible for immediate annuity A deferred annuity is payable at age 62 IF: At least five years of creditable civilian service Must meet the one-out-of-two requirement at the date of separation Has not taken a refund of retirement deductions for the last period of service FEHB and FEGLI will NOT be reinstated at the time your annuity commences. Application is sent directly to OPM

48 48 Retirement Forms SF 2801, Application for Immediate Retirement Copy of marriage certificate, if married SF 2801, Schedule A, Schedule B, Schedule C SF , Spousal Consent for Survivor Election SF 2818, Continuation of Life Insurance Coverage W-4P and State Tax withholding forms DD 214, Report of Separation from Active Duty Proof of military and civilian deposits Written notice of proposed involuntary separation (DSR) VSIP agreement (if applicable)

49 49 Unused Sick Leave Must retire on an immediate annuity or postponed annuity Added to length of service for computation purposes only Additional time computes on the basis of a 2087 hour work year May increase survivor annuity

50 DAYS 1 Day 1 Month 2 Months 3 Months 4 Months 5 Months 6 Months 7 Months 8 Months 9 Months 10 Months 11 Months Sick Leave Chart

51 51 Example Computing Total Service with unused sick leave TOTAL SERVICE (DOR) (Ret-SCD) Unused Sick Leave 1136 hours = =

52 52 High-3 Average Salary Weighted average of highest 3 years of basic pay (including locality pay / local market supplement) Must be 3 consecutive years Is usually the last 3 years Is the highest salary, not the highest grade Normally, the beginning date of the 3 year period is determined by subtracting 3 years from the date of retirement Not paying a USERRA military period in your high 3 years could affect your high-3 salary (if first hired after Oct 1, 1982)

53 53 Annuity Computation Formula for Computing Annuity for Voluntary Retirement: 1.5% X High-3 avg salary X first 5 years of service PLUS 1.75% X High-3 avg salary X next 5 years of service PLUS 2.00% X High-3 avg salary X remaining service > 10 years* *Includes unused sick leave

54 Reductions & Deductions Reductions: Age Reduction (VERA/DSR) Deposit / Redeposit Service for CSRS component Election of Survivor Benefits Deductions: Health Insurance Life Insurance Taxes Federal Long Term Care Insurance Program (FLTCIP) Federal Employee Dental and Vision Insurance Program (FEDVIP) 54

55 55 Survivor Elections

56 56 Survivor Elections Calculating a Partial Survivor Annuity Take the monthly amount desired, multiply by 12 and then divide by 55% (.55) Example: You and your spouse agree you want them (spouse) to receive $980 per month. Calculations follow: $ x 12 = $11,760 /.55 = 21, Round up to the whole dollar amount of $21,382 and input on the line in block 2 of the SF 2801 Section F

57 57 Predetermination Divorce Decree Predetermination You can send your divorce decree to OPM to get a predetermination of your benefits for your ex-spouse Send to: Office of Personnel Management (OPM) Court Ordered Benefits Branch P.O. Box 17 Washington, D.C., 20044

58 58 Survivor Benefit Cost / Reduction Cost = 2.5% of base annuity up to $3,600 plus 10% of base annuity over $3,600 Example: $30,000 base annuity (Max elected) $3,600 x 2.5% = $ 90 $26,400 x 10% = + $2,640 Reduction/Cost = $2,730 yearly Survivor will receive 55% of base annuity = $16,500 yearly Example: $30,000 base annuity ($3,600 elected) $3,600 x 2.5% = $90.00 Reduction/Cost = $90.00 yearly Survivor will receive 55% of $3,600 annuity = $1,980 yearly

59 59 Survivor Benefit Payments The survivor benefit is payable for life unless the survivor remarries before the age of 55 Benefits will be restored if the remarriage terminated in death, annulment or divorce

60 60 Disability Retirement Disability Unable to render useful and efficient service because of disease or injury Must be in a position covered by CSRS / CSRS Offset Minimum of years creditable civilian service Disability annuity IS subject to Federal tax

61 61 P.L Special Disability Retirement Provision A NG technician may be eligible if: Involuntarily separated due to medical disqualification Not found by OPM as meeting criteria for a regular disability Not appointed to another Federal position Not declined a reasonable job offer

62 62 PL Waiver of Reconsideration and Appeal Rights Technician should sign a waiver statement indicating desire to be considered for benefits under the special provisions of PL Statement should have printed or typed name and Social Security Number If OPM determines that the NG Technician is not eligible for disability under regular provisions, provided the required 30-day notice has been given, the technician is separated. By completing the waiver, this speeds up the process allowing PL disabilities to be approved in 2-6 months as opposed to months for regular disabilities

63 63 Disability Retirement Submit all forms for regular retirement Plus: SF 3112A Applicant s Statement of Disability SF 3112B Supervisor s Statement SF 3112C Physician s Statement SF 3112D Agency Certification of Reassignment and Accommodation Efforts FedMER Eligibility Statement, applicable to CSRS Offset Employees Only (Submit SSA Application after date of separation) Waiver- P.L (If Applicable) Written Notice of Proposed Involuntary Separation (P.L ) Military Discharge Orders (P.L )

64 64 Death-In-Service If you die while still an active employee, your survivor MAY be entitled to death benefits In the event of your death, your supervisor needs to contact your servicing Human Resource (HR) Representative or Human Resource Officer (HRO) HR will contact ABC-C An ABC-C specialist will contact the survivor within 24 hours

65 65 Death Benefits Spousal Benefits Monthly annuity (survivor benefits) payable if married to employee at least 9 months and had at least 10 years of creditable civilian service. EXCEPTIONS to the 9 months of marriage requirement: Spouse is the parent of a child of the marriage, or Death was accidental

66 66 Death Benefits Children s Benefits Children s Benefits are payable if: The child is unmarried AND under age 18, or Under age 22 if full-time student, or Any age if disabled before age 18 Children s Benefits are the same if death-in-service or death as an annuitant

67 67 Death Benefits Up to 3 children if a parent is living 2017 rate is $512 per month per child More than 3 children, $1,537 divided by the # of children Up to 3 children if no living parent 2017 rate is $614 per month per child More than 3 children, $1,844 divided by # of children

68 Beneficiary Beneficiary Forms: SF 1152 (Unpaid Comp) SF 2823 (FEGLI) SF 2808 (CSRS) TSP 3 (TSP) Order of Precedence: Court Order Designation of Beneficiary Widow or Widower Children (and/or descendants of deceased children) Parents Executor or Administrator of Estate Next of Kin 68

69 69 COLA Cost of Living Adjustments Annual rate based upon rise in Consumer Price Index (CPI) Increase in CPI Up to 2% Effective 1 Dec each year Amount of COLA Full CPI 2% - 3% 2% 3% or more CPI 1% Payable in Jan (Prorated 1/12 th of COLA for each month after retirement) Payable in full thereafter Disability annuitants and survivors receive COLA The COLA for 2017 was 0.3%

70 WEP Windfall Elimination Provision If you didn't pay Social Security taxes on your government earnings and you are eligible for Social Security benefits, the formula used to figure your benefit amount may be modified, giving you a lower Social Security benefit WEP affects Social Security benefits when any part of your Federal service after 1956 is covered under the Civil Service Retirement System (CSRS). However, Federal service where Social Security taxes are withheld (Federal Employees Retirement System or CSRS Offset) will not reduce your Social Security benefit amounts If you feel this may be applicable to you contact Social Security 70

71 GPO Government Pension Offset If you receive a pension from a Federal, state or local government based on work where you did not pay Social Security taxes, your Social Security spouse or survivor s benefits may be reduced. You are exempt from the GPO if you were contributing to Social Security for your last 5 years of federal employment. Your Social Security benefits will be reduced by 2/3s of your government pension. Monthly civil service pension - $1,200 2/3s offset to Social Security - $ 800* Spouse or survivor benefit - $1,000 Final amount due - $ 200 ($1,000 $800* = $200) 71

72 72 NAF Non-appropriated Fund Retirement Processing NAF Retirement System Contact nearest NAF Office CSRS Retirement Plan Contact the ABC-C

73 73 Important!!! If you are retiring and immediately being hired by NAF, transferring to other Federal employment, or being rehired as a reemployed annuitant, you must notify the ABC-C before your retirement is processed. This should prevent erroneous payout of your lump sum annual leave

74 74 FEHB Federal Employees Health Benefits Self Only Self & Family Self Plus One Additional Information: OPM Telephone:

75 75 FEHB To take FEHB into retirement you MUST: Retire on an immediate annuity Be insured on the date of retirement Be covered for the 5 years of service prior to retirement or since your FIRST opportunity to enroll (special rules for VERA and DSR, see next slide) Coverage as a family member under FEHB or TRICARE counts toward the 5 year requirement (employee must be enrolled in FEHB prior to retirement)

76 76 FEHB Pre-approved automatic waiver of 5-year requirement: Must be enrolled in FEHB on the first day of the buyout period (October 1 of the current FY) and Retire during the buyout period; and Receive a buyout (VSIP); or Take early optional retirement (VERA) as a result of early-out authority; or Take a DSR based on involuntary separation due to reduction-inforce

77 77 FEHB Cost of FEHB is the same for retirees and active employees except that premiums are paid on a monthly vs bi-weekly basis Same Open Season and qualifying life event (QLE) opportunities as active employees Same FEHB plans available Once you cancel FEHB in retirement, you can never re-enroll Retirement is not a QLE for changing your FEHB enrollment At age 65, enrollment in Medicare is optional, however, if enrolled in Medicare it becomes your primary and FEHB becomes secondary

78 78 FEHB Retirees can suspend FEHB for TRICARE, Medicaid (or similar state sponsored program) or Medicare Advantage (Medicare Part C) and return to FEHB coverage during Open Season or immediately upon involuntarily losing non-fehb coverage Retirees DO NOT participate in Premium Conversion Your spouse is eligible to continue FEHB coverage after your death only if you have them covered and you elect to provide a survivor benefits at retirement

79 79 Medicare Part A (Hospitalization) No Cost Enroll at age 65 Enrollment is automatic at age 65 if you are receiving Social Security Benefits Part B (Medical) Monthly premium based on yearly adjusted gross income Part C A plan offered by a private company Part D (Drug) Monthly Premium

80 80 FEGLI Federal Employees Group Life Insurance Additional Information: OPM Telephone:

81 81 FEGLI Continuation into Retirement Retire on an immediate annuity Insured on the date of retirement Enrolled in each Option and Multiple for the 5 years of service prior to retirement OR since your FIRST opportunity to enroll Election Form: SF 2818 Continuation of Life Insurance

82 82 FEGLI Basic Life Options: Basic Insurance Amount (BIA) is based on your final annual salary rounded up, plus $2,000. Ex: $51,400 = $52,000 + $2,000 = Amt of Basic Ins $54,000 Options Before age 65 After age % reduction BIA x.3250 (per $1,000) NO COST ex: $17.55 per month 2. 50% reduction BIA x (per $1,000) BIA x.71 (per $1,000) ex: $55.89 per month ex: $38.34 per month 3. NO reduction BIA x (per $1,000) BIA x 2.13 (per $1,000) ex: $ per month ex: $ per month

83 83 FEGLI Basic Life Insurance Elections

84 84 FEGLI Option A Standard Coverage ($10,000) Age Group Monthly Cost Under 35 $ through 39 $ through 44 $ through 49 $ through 54 $ through 59 $ through 64 $ and above No Cost At age 65 coverage reduces by 2% per month for 37.5 months until it reaches $2,500

85 85 FEGLI Option A Elections

86 86 FEGLI Option B (1-5 Multiples of Pay) Option B Ex: Annual Salary $51,400 1x Multiple elected = $52,000 Age Group Mthly $1000 Mthly Cost Under 35 $0.043 $ through 39 $0.065 $ through 44 $0.087 $ through 49 $0.152 $ through 54 $0.238 $ through 59 $0.433 $ through 64 $0.953 $ through 69 $1.170 $ through 74 $2.080 $ through 79 $3.900 $ and above $5.720 $297.44

87 87 FEGLI Option B Elections Full Reduction: At age 65, no cost & coverage reduces by 2% per month for 50 months at which time coverage will end No Reduction: Coverage and premiums will continue

88 88 FEGLI Option C Family Coverage (1-5 Multiples) Spouse = $5,000 (1 x Multiple) / Each Child = $2,500 (1 x Multiple) Age Group Mthly $1000 Mthly Cost Under 35 $0.48 $ through 39 $0.59 $ through 44 $0.89 $ through 49 $1.28 $ through 54 $1.99 $ through 59 $3.21 $ through 64 $5.85 $ through 69 $6.80 $ through 74 $8.30 $ through 79 $11.40 $ and above $15.60 $15.60

89 89 FEGLI Option C Elections Full Reduction: At age 65, no cost & coverage reduces by 2% per month for 50 months at which time coverage will end No Reduction: Coverage and premiums will continue

90 90 TSP Thrift Savings Plan Telephone: TDD: Monday through Friday 7:00 a.m. 9:00 p.m. ET Mailing Address: Post Office Box Birmingham, AL Thrift Savings Plan

91 91 TSP Provides a choice of tax treatment for contributions: Traditional (pre-tax) contributions and tax deferred investment earnings Roth (after-tax) contributions with tax-free earnings at retirement Provides the opportunity to increase your retirement income You must be in a position subject to retirement deductions to contribute TSP offers two approaches to investing your money: L Funds (Lifecycle) invested in a mix of the funds Individual Funds are the G, F, C, S and I funds

92 92 TSP Funds Government Securities Investment (G) Fund Invested in short-term U.S. Treasury securities Interest income without risk of loss of principal Payment of principal & interest is guaranteed Low risk Fixed Income Index Investment (F) Fund Government, corporate & mortgage-backed bonds Invested in bond index fund that tracks Barclays Capital U.S. Aggregate bond index Offers opportunity to earn rates of return that exceed money market fund rates over the long term Low to moderate risk

93 93 TSP Funds Common Stock Index Investment (C) Fund Stocks of large & medium-sized US companies Invested in stock index fund that tracks the Standard & Poor s (S&P) 500 stock index Potential to earn high investment returns over the long term Moderate risk Small Capitalization Stock Index (S) Fund Stocks of small to medium-sized US companies Invested in stock index fund that tracks Dow Jones Wilshire 4500 Completion (DJW 4500) index Earn potentially higher investment returns over the long term than in the C Fund Moderate to high risk (more than the C Fund)

94 94 TSP Funds International Stock Index Investment (I) Fund International stocks of 21 developed countries Invested in stock index fund that tracks the Morgan Stanley Capital International EAFE (Europe, Australia, Far East) index Potential to earn high investment returns over the long term Moderate to high risk Lifecycle (L) Fund Each L Fund is invested in the individual TSP funds (G, F, C, S, I), using investment allocations that are tailored to different time horizons Objective is to provide the highest possible rate of return for the amount of risk taken Subject to the risks of the individual funds Expected returns will be approximately equal to weighted average of the G, F, C, S, I Funds returns

95 95 Lifecycle Funds Fund Time Horizon Growth Risk L Income Retiring now Low Low L 2020 Retiring Moderate Moderate L 2030 Retiring Moderate to High High L 2040 Retiring High High L 2050 Retiring 2045 & after High High

96 96 TSP Withdrawal Automatic cash out (accounts less than $200) Leave money in the TSP Full Withdrawal Mixed Withdrawal Must begin to receive TSP funds by April 1 of the year following the year you are age 70 ½ How to APPLY: TSP-70 Form Withdrawal Request

97 97 TSP Make-Up You are eligible to make-up missed contributions if you meet all of the following conditions: You were placed in ABS-US or separated from Federal civilian service to perform military service You were released from military service on or after You were re-employed in or restored to a position covered by CSRS or FERS Request must be submitted within 60 days of Return to Duty

98 98 TSP Make-Up If you contributed to TSP during your period of military service: The amount you can make-up will be reduced by the amount you contributed to your military TSP account Your make-up contributions will not count against the current year s IRS limit

99 99 TSP Make-Up You will need to submit through your local HR Office: DD 214(s) or military orders All military Leave and Earnings Statements (LESs) to verify your TSP contributions while on active duty Provide your documentation to your Local Human Resource Office For more information on TSP Make-Up, please see the TSP Fact Sheet, TSP Benefits that Apply to Members of the Military Who Return to Federal Civilian Service, on the TSP website:

100 Sample Make-Up Letter

101 101 TSP Catch-Up Open to TSP participants turning age 50 this year or older Not eligible for agency automatic 1% matching contributions Limited to $6,000 for 2018 Must be contributing IRS yearly maximum, $18,500 for 2018 Must make a new election each year Charts are available on the ABC-C website Elections made via EBIS at

102 102 LTCI Long Term Care Insurance Want to talk with a Certified LTCI Consultant? Tel: LTC-FEDS ( ) TTY: Mon - Fri 8 a.m. - 6 p.m. ET Closed Sat., Sun. and Federal holidays.

103 103 FSA Flexible Spending Accounts To receive information regarding FSA, please contact a FSA Representative. Retirees are NOT eligible to continue FSA and CANNOT participate after retirement FSAFEDS@ADP.com Telephone: TTY: Monday Friday 9 am 9 pm ET Closed Weekends and Holidays

104 104 FEDVIP Federal Employees Dental & Vision Insurance Program No 5 year enrollment requirement Can enroll during Open Season after you retire even if you were never enrolled Can enroll in dental, vision or both ENROLL AT TTY

105 105 Retirement Estimates Request your retirement estimate no more than 5 years prior to your retirement eligibility date ABC-C will compute one retirement estimate per every 365 days Retirement estimates include: Verification of military service & civilian service documented in your Electronic Official Personnel Folder (eopf) Calculation of amount of civilian deposit and/or redeposit Impact of unpaid civilian deposit/redeposit & military deposit on your retirement annuity Confirmation of your current FEHB & FEGLI enrollment & your eligibility to continue these into retirement

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110 110 Retirement Timeline 5 years prior to retirement: Contact ABC-C for retirement estimate and information Call ABC-C with questions on retirement estimate 180 days prior to retirement: Complete the eretirement forms on EBIS website Call ABC-C for assistance with the forms days prior to retirement: Mail original retirement forms to ABC-C Maintain a personal copy Provide a good retirement address & contact information When application is received, you will receive an automated

111 111 ABC-C Process days prior to retirement: Retirement package assigned to specialist (another automated generated indicating it has been assigned) ABC-C retirement specialist Verifies required forms and documents Processes retirement package Provides final retirement counseling Retirement package is forwarded to DFAS

112 112 Retirement Process 2 4 Weeks after retirement Final paycheck is received Lump sum annual leave is paid VSIP payments if applicable Approximately 8 10 Weeks after retirement: Receive 1 st Interim payment Receive letter from OPM with Civil Service Annuitant (CSA) number Office of Personnel Management Retirement Operations Center P.O. Box 45 Boyers, PA retire@opm.gov Tel: Social Security Administration Tel: IRS Publication Tel: Tax-Form

113 113 Changing or Withdrawing Your request to change your date of retirement or to withdraw your retirement application must be in writing and Must be signed May be faxed to ABC-C Forms are available on the ABC website: If you are receiving a VERA and/or VSIP, your request should be signed by your HRO/CPAC Submit request to ABC-C as soon as you have made a decision Changing or withdrawing your retirement MAY cause problems with your paycheck

114 114 Additional Information Contact the ABC-C Toll Free: Fax: Specialists are available from 7 am 5 pm CST (Monday through Friday except National Holidays) Website: Mailing Address: 305 Marshall Avenue Ft Riley, KS

115 115 Telephone Chart Army Benefits Center Civilian Select: 1= Army Civilian 2= DCMA Civilian 3= National Guard 4= Non-Appropriated Fund or Uniformed Service Member

116 116 Any Questions???