I've been watching your videos and I find them extremely helpful!!! Thank you so much.

@PlanYourFederalBenefits

2 жыл бұрын

Great to hear Kimberly! My pleasure!

One minor correction, when calculating the FERS Supplement Formula (11:23 in the video) you don't just use "Years of Creditable Service" you use "Years of Creditable Service Rounded to the Nearest Whole Number". You can find that in the OPM Publication, "Retiree Annuity Supplement", Chapter 51, Page 11, Section D "Amount of Retiree Annuity Supplement", which states: "The numerator is the retiree's total civilian service creditable under FERS, rounded to the nearest whole number, but not exceeding 40 years;". You can read the actual OPM rules on the Annuity Supplement at: www.opm.gov/retirement-center/publications-forms/csrsfers-handbook/c051.pdf

Than you for this summarized information. One thing I discovered recently that I was unaware of was that when getting the supplement, the retiree does not receive a COLA. You might add or clarify this on a future video. Blessings!

@PlanYourFederalBenefits

3 жыл бұрын

Great question, the supplement does not get COLA's for traditional FERS

@wallace_n_gromit3180

2 жыл бұрын

@@PlanYourFederalBenefits The retiree also gets no COLA on their actual FERS pension either until 62.

@AD-ui2pz

3 ай бұрын

here’s my question - if I am receiving the supplemental when I retire at 57 and decide to work part time under the limit allowed of around $24K- is my spouse permitted to work and earn whatever she can without it affecting my supplemental amount? o other words say i work part time for like $24k just under the limit and my wife makes $30K - would my supplemental not be impacted??? thanks !

@AD-ui2pz

3 ай бұрын

here’s my question - if I am receiving the supplemental when I retire at 57 and decide to work part time under the limit allowed of around $24K- is my spouse permitted to work and earn whatever she can without it affecting my supplemental amount? o other words say i work part time for like $24k just under the limit and my wife makes $30K - would my supplemental not be impacted??? thanks !

Very informative. Thanks

Thanks for covering special provisions!!

@PlanYourFederalBenefits

3 жыл бұрын

My pleasure!

Thank you very much, sir!

@PlanYourFederalBenefits

3 жыл бұрын

You are welcome!

Thank you. This is great information.

@PlanYourFederalBenefits

2 жыл бұрын

Glad it is helpful! Have a great day!

Thanks for all the info you give. But in my case I happened to work two jobs for many years so I found out OPM will only use my earning from my federal job to calculate my supplement. They do not use my SSI benefit estimate from Social Security as it is a higher amount because I paid more into it due to second job. Just to let anyone else know if they are in the same boat as I.

Very informative, 🙏 ❤

Great information. Didn’t know about the military buyback clause. That affects me but buy only 3 years.

@PlanYourFederalBenefits

2 жыл бұрын

Great to hear! Have a great day!

This was very helpful. Thanks.

@PlanYourFederalBenefits

5 ай бұрын

Glad it was helpful and Thank you for commenting!

Hello Mr. Haws. I will soon be 58 with 20 years of service. If I am understanding this correctly, I would not be eligible for the supplement until I reach 60 years old. My question is, if my Agency offers early retirement, would I be eligible for the supplement even if I have not yet reached 60? Thank you very much, and thanks for your excellent videos!

Great video! Thank you. One question I never see covered is if your FERS Supplement is included in survivor benefits if you should pass away before your spouse turns 62. Thanks.

@PlanYourFederalBenefits

3 жыл бұрын

Great question. Unfortunately, the FERS supplement is not included in survivor benefits.

@BlueLion364

3 жыл бұрын

@@PlanYourFederalBenefits Thanks for the very straight answer. Over been looking for that one. I guess that if the spouse is 60 or older SS survivor benefits would make up the difference.

Income from business. Is it based on gross income or net income for the reduction in supplement retirement pay? Thanks

Great video

Age 57 with 20 years of service and taking the Early out option. Do I qualify for the FERS supplement?

If retiree receives K-1 from C-Corp he has ownership in, does this count towards "business income" that you mention? The definition provided only mentions W-2 and self-employment income.

I retired last June 2021, In January 2022 I started a new job, what do I need to do to inform OPM

Great!!

One additional point about the income reduction, per the question I asked my HR retirement specialist... If you retire in the middle of a year (meaning that you have fed salary for the year which might seem to count against you), that year is ignored. For example, retiring mid-2021 means that there will be no reduction for 2022, regardless of income. The earliest the supplement could be reduced is 2023.

@PlanYourFederalBenefits

3 жыл бұрын

Thanks for sharing!

@DiacriticalOne

2 жыл бұрын

This is great to hear. I was worried about that final paycheck where they settled all 640 hours they owed me for vacation. It would have wiped out my supplement next year. Thanks!

@thuntermi

2 жыл бұрын

@@DiacriticalOne Now that I actually went through the process, I should point out that I may have been misinformed -- slightly. You do get the form asking you about income, but if I remember correctly (it was a few months ago) it only wants to know about the non-federal income. I don't remember exactly how it was worded, but the lump-sum annual leave and partial-year salary as well as any annuity payments are all excluded from consideration.

Do you know if the fers supplement is eliminated will those who are already on it lose their benefits too?

Thanks for the informative video. At my agency overseas time is calculated as 1.7 years for figuring retirement annuity. Does FERS also calculate it this way for the Supplement or is it just 1 for 1?

@PlanYourFederalBenefits

3 жыл бұрын

Just 1 for 1 for the FERS supplement but great question!

Awesome job! You’ve got me hooked .. Question?? If I take out a loan from my thrift and I retire several months down the road, my loan gets paid off in full upon retirement from my thrift funds. Does this chunk of money to pay off my loan get taxed?

@bigvision

3 жыл бұрын

Any loan amount that is not paid back will be counted as income and you’ll receive a form from TSP in January to turn in with your 1040(EZ).

@jungleboy1968

3 жыл бұрын

@@bigvision thanks 👍🏼

Hello, very informative and thank you. Question, Is the Fers Supplement taxed monthly before distribution?

@PlanYourFederalBenefits

2 жыл бұрын

Feel free to submit your question here: hawsfederaladvisors.com/question-submission-page/ This is where we get topics for future videos.

If you take the supplement at 57 and then apply for Social Security at 62, will your Social Security payment be less than it was estimated? My understanding is that the estimate assumes you work until age 62 but the payment uses actual earnings. If you retire at 57, you won’t have 5 years of high earnings from 57-62, as it is assumed in the estimate.

Question: Can you address if you made more money and the Supplement was reduced to zero, but then you stop working and haven't reached your MRA, does the Supplement come back? Thanks

@PlanYourFederalBenefits

3 жыл бұрын

Great question, I'll have to add that to my list.

@echogolf2291

2 жыл бұрын

@@PlanYourFederalBenefits Hello Sir, please please address this. I have heard rumors going both ways. This is a $100,000 question to those wanting to work one or 2 years past MRA.

OPM said today that they don't have the fers supplement for widows anymore.

Hi - I found your videos on the SRS very informative THANK YOU!! I'm a bit of a unicorn as my coworkers have said. I started in the government at age 19 and my MRA is 57.5. If I stay until I am 60.5 I will actually have 40 yrs of service. So my QUESTION for you is, if I do the math with my number of years of service (40) divided by the standard number of 40 I end up with (yup you guessed it) 1...so does that really mean that I could potentially retire at age 60 with my full social security amount as my 'bridge" or SRS? Currently 55.5 so something I guess I really need to start thinking about. APPRECIATE YOUR TIME!

@michelespencer6095

Жыл бұрын

*MRA is 56.5

@PlanYourFederalBenefits

Жыл бұрын

Feel free to submit your question here: app.hawsfederaladvisors.com/question-submission This is where we get topics for future videos.

If your agency offers early retirement at age 50 (with at least 20 years of service) would you still be eligible for the FERS annuity supplement?

@PlanYourFederalBenefits

3 ай бұрын

Great question. Here's another great video that discusses that: kzread.info/dash/bejne/Zmh6maNulqy4p7g.html&ab_channel=HawsFederalAdvisors

Is the earned income limit based on the net or gross income from a W-2?

@PlanYourFederalBenefits

3 ай бұрын

Great question. The answer can be found on the article that I showcased in the video. It says, "Earned income generally only includes W2 income (so if you get another job) or income from a business." Here is a link to the article is you want more information: hawsfederaladvisors.com/the-fers-supplement-the-ultimate-guide/

Just happened to watch this video and have a question. I will be retiring at 57 with 32 years but my daughter will only be 14. I had her later in life. Does my FERS supplement include a dependent stipend? I’m a single mom. I know this is an older video so hoping someone will know.

@wallace_n_gromit3180

2 жыл бұрын

I'm retired on FERS with the Supplement. Retired at 56 in 2019. In the Federal Almanac i don't recall ever reading about any dependent stipend or any kind of additional payment added on to the Supplement.

If I'm 60 and my spouse has passed and now I'm collecting the SS survivor benefit, am I eligible to receive the FERs supplement? (Assuming I meet all the FERs supplement requirements).

@PlanYourFederalBenefits

3 жыл бұрын

Yes, I don't see why you wouldn't.

@christopher2green

3 жыл бұрын

@@PlanYourFederalBenefits Thank you!

Ok If i have stocks that have dividend earnings or if i cash out some stocks after retirement and getting FERS Supplement. can this be done without penalties ? Or do i have to cash out all my stock before retirement? need to know soon Mike Vose

@PlanYourFederalBenefits

3 жыл бұрын

Great question, if you have earned income over certain limits (changes ever year) then your FERS supplement can be reduced in retirement.

@Crispin38

2 жыл бұрын

So capital gains from stock or mutual fund sales is considered income that may reduce the fers supplement? What about rental income?

@notmeee7302

10 ай бұрын

I could be mistaken but I believe it has to be active earned income reported on a W-2 or 1099. I believe rental income, dividends, royalties, and capital gains are considered passive income as it's not reported on a W-2 or 1099. I'm not a financial advisor. Social security income limit for 2023 I believe are $19,500 that you can make before it affects your reduction. Need to check with a professional

I know I'm reaching, but, if I retire at 57 yrs 10 mths (18 yrs, 2 mths & 27 days), is that still considered retiring at MRA+10 & could I draw the Annuity supplement?

@PlanYourFederalBenefits

2 жыл бұрын

Unfortunately, You can't get the FERS supplement with an MRA+10 retirement

@ktaylor9804

Жыл бұрын

I was in your situation. I decided to continue to work until I reach 20 years & age 60. Reward: 1. I'll collect 2 years of monthly supplemental payments. 2. Receive retirement annuity with no penalty.

Can you still recieve Healthcare benefits if you retire from Federal Service with 9 years of service?

@PlanYourFederalBenefits

3 ай бұрын

Great question, here is a video that talks about this: kzread.info/dash/bejne/rKGYtdalmLy6l84.html&ab_channel=HawsFederalAdvisors

If I retire at 57 with 30 yrs in the FERS, will I be able to take my TSP in one lump sum?

@lutherfoust5483

3 жыл бұрын

Yes, but you would have to pay "all" that income tax (except the Roth part).

@jenzanoni9305

2 жыл бұрын

I thought they don't give out lump sum

So if I turn 62 on July 23, my last Supplement in my OPM check will be June, even though my Social Security wont kick in until the 4th Wedenday of Sept.

@tyronmegawatts6580

3 жыл бұрын

That’s a great point. Not taking social security as soon as possible is a huge mistake.

@jenzanoni9305

2 жыл бұрын

@@tyronmegawatts6580 why is that? 🤔

@tyronmegawatts6580

2 жыл бұрын

@@jenzanoni9305 because if you wait until 70, you'll have to live to 80 to break even. It's the same amount of money, just given in different denominations. Due to the time value of money, it's always worth more in the present. And with inflation speeding up like a snowball rolling down a hill, waiting is not smart.

@jenzanoni9305

2 жыл бұрын

@@tyronmegawatts6580 thanks..a friend of mine said to the same thing..good to know

@tyronmegawatts6580

2 жыл бұрын

@@jenzanoni9305 It would be a gamble to wait, if you don't need the money you can always stick it in a dividend paying Vanguard fund. Help a kid with college, etc. It reminds me of the people who tried to say FERS was a better deal than CSRS, and people should switch. LoL.

The FERS supplement is almost too good to be true, free money when you retire that is not deducted from current savings or future benefits. Downsides are that it discourages working and making decent income in retirement. For example if you wanted a fun job at your favorite shop to occupy your time, you could lose your supplement. The MRA plus 30 years of service is hard to reach or very far away for many. Federal employees who wait until age 62 to get the 1.1% pension multiplier don't get the supplement. Also it cuts off at age 62 when my optimal SS filing age would be 67, so it is only a partial bridge.

I’m a widower. Can I collect the FERS special supplement and widowers benefits starting at 60 years old?

@PlanYourFederalBenefits

4 ай бұрын

Great question! Here's a video that can help with that question: kzread.info/dash/bejne/p6eFm8mxmdu-dbw.html&ab_channel=HawsFederalAdvisors

@rt1778

4 ай бұрын

@@PlanYourFederalBenefits Thank you sir..

Going Deeeeep!!!

More questions. So if you have 26 years of credible service, you don't qualify for FERs supplement?

Please stop saying "Okay?, at the end of every sentence. We get it.

@PlanYourFederalBenefits

2 жыл бұрын

Okay :)

Let them eat cake