Federal Employee's Retirement Planning Guide - Civil Service Financial Planning Resources

Fixed Income – Yields Decrease as Feds Reduce Rates

Posted on Friday, 4th October 2024 by Dennis Damp

The Federal Reserve lowered its benchmark interest rate September 18^th by .5 percent (50 basis points), the first rate cut in four years! This rate cut lowers the Fed’s benchmark short-term rate to 4.75% to 5% from a 23-year high of 5.25% to 5.5%. The cut slightly eased borrowing costs for consumers across the board.

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Even with this rate cut, fixed income continues to hold its attraction for retirees and those who want to earn a fair rate of return on their cash and savings. While the stock market does offer the potential for higher gains, it doesn’t come without risks for those approaching retirement and retirees alike.

Treasury Bill and Note Rates Still Attractive

The national average savings account yield is 0.61 percent APY, according to Bankrate’s survey of institutions as of September 16, 2024. Higher rates are available from many online banks if you look around or negotiate a better rate with your bank. The average savings account yield would earn you a measly $61 per $10,000 of savings for the entire year!

The 26-week Treasury Bills are currently earning 4.25 percent. You can select auto reinvestments for up to two years and they can be canceled at any time if the funds are needed. The rates change for each new issue. However, the shorter-term (4, 8, and 13-week) Treasury Bill yields have averaged just above 5 percent over the past year.

Although the Federal Reserve intends to further reduce rates over the next 18 months, Treasury Bills continue to earn attractive yields. Treasury interest payments aren’t subject to State taxes, another tax savings for all.

Treasury Bill Investment Rates

Treasury Notes are currently offering anywhere from 3.3 to 4.3%. With these notes there is also the potential for capital gains if interest rates continue to decline and you decide to sell them on the secondary market before maturity.

Treasury Note Interest Rates

Purchasing Treasury Bills, Notes, and Bonds

Visit TreasuryDirect.gov to register, explore the options, and start purchasing Treasury bills, notes, and bonds, TIPS, and savings bonds. You are buying direct from the government and eliminating the middle man; there aren’t any fees charged for purchases.

Most brokerage accounts offer clients access to Treasury auctions and will purchase them for your account; they can be sold on the secondary market if needed. Here is more information on the Treasury’s programs:

CDs and Savings Bonds

Many online banks, credit unions, and some regional banks are offering competitive rates for savings accounts and CDs from 3.5 percent and higher in many cases. With rates falling I’m looking for longer term CDs or 2, 3, 5, 7, or 10-year Treasury Notes to lock in higher rates.

I purchased 15-month CDs at two local credit unions last December for 5.75% and my primary credit union matched their offer!

CDs have no market risk if you stay under their insured FDIC limits. I moved some of the funds I was cycling through the Treasury to this attractive yielding investment. In hindsight, I could have moved more.

I-Savings Bond Rates

I Bonds issued May 1, 2024, to October 31, 2024, are earning 4.28%. This includes a 1.3% fixed rate. Still a great rate for one of the safest investments available. You can’t cash them in for one year. Plus, if you redeem them within the first five years you lose three months’ interest.

If the I Bonds you purchased previously didn’t have a fixed rate, you will only earn the inflation rate when the new rates are announced for the next six months. I Bonds with a high fixed rate are a great buy, some of my early I Bonds have a 3% fixed rate.

If you purchase an I-Bond by no later than October 31, 2024, you’ll receive the 4.28% for six months from the date of purchase. The rate will change after that to the new inflation rate announced this coming October plus any fixed rate your previously purchased bonds may have.

Federal employees who are retiring soon and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

Market Observations

The stock market continues to soar and 401K balances have risen dramatically for the most part. Election years are typically a positive indicator for the broader market. Nineteen of the past 23 presidential election years (83%) resulted in positive S&P 500 gains.

This election year one candidate has proposed taxing unrealized gains that could upend the market. Yet, there are so many variables to factor in with both candidates: tariff impacts, raising or lowering corporate taxes and capital gains, the border crisis, law and order issues, numerous overseas conflicts that are overflowing into America, and so much more.

The fact of the matter is that both candidate’s proposals must pass through Congress. Consequently, much of what is proposed will either be modified or go by the wayside as reality sets in. Who knows what will end up driving the market one way or the other after the election.

Neither candidate is addressing the excessive national debt or insisting that any new spending must be offset with cuts elsewhere. The current administration is borrowing a trillion dollars every 3 months! All of these excesses add further instability to our fragile free market system.

Summary

As a retiree, I still prefer to invest in the safety of Treasuries, CDs, and conservative stocks, mutual funds, and market leaders that have been around for many decades, pay dividends, and have sound fundamentals. Many retirees set aside a small portion of their investments for the more aggressive growth stocks, mutual funds and ETFs of the day.

Now that the Federal Reserve is starting to cut rates, it may be time to add longer term CDs and Treasury Notes to your fixed income investment portfolio. CD rates are dropping as the Fed continues to lower rates for the foreseeable future.

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If you can lock up your discretionary savings and investments for 12 months or longer, CDs are a viable option. They can be cashed in before maturity, however the penalties can be significant. Treasury Bill rates are moderating down a bit as noted on the first chart in this article.

Short term T-Bills continue to provide impressive yields considering many banks still low ball their savings rates for established accounts. These banks are betting on the reluctance of many to move funds from their savings and checking accounts elsewhere.

Correction

In my last article titled “2025 Health Care Premiums Announced, Hold on to Your Hat!” I misquoted the BCBS Self-Plus-One (113) plan premium increase incorrectly at 8.7%, it was actually a 12.95% increase. Here is how the comparison should have been written:

Premiums for the Self-Plus-One BCBS basic (113) plan and Government Employee’s Health Association (GEHA) Standard (316) plan follow: BCBS’s monthly premium increased $76.94 to $593.97, a 12.95% increase, while GEHA’s premium increased $47.39 to $374.18, a 12.7% increase. The annual increases are $923.28 for BCBS Basic and $568.68 for GEHA Standard!

Chris, one of our subscribers brought this to my attention and the input was greatly appreciated. This was corrected on the blog posting. We simultaneously publish the articles we send out to our newsletter subscribers on our blog.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: CD Rates, Fed Rate Cuts, Fixed Income Options, Treasury Bill Yields, Treasury Note Yields
Posted in ANNUITIES / ELIGIBILITY, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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2025 Health Care Premiums, Hold on to Your Hat!

Posted on Friday, 27th September 2024 by Dennis Damp

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Federal employees and annuitants enrolled in the Federal Employee Health Benefit’s (FEHB) program will pay 13.5% more, on average, for their health care premiums.

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Adding this huge increase to the 7.7% premium rise for 2024, and 2023’s 8.7% increase we are all paying substantially more for our health care insurance. OPM said the increase reflects changes in the market over the last year, and generally aligns with other programs in the commercial market. Over the past three years our average FEHB costs have increased 29.9%!

FEDVIP’s premium increases are quite modest in comparison. Average premiums for dental plans are increasing by 2.97%, and the overall average premium for vision plans will increase by 0.87 percent.

In March, Medicare Trustees forecasted monthly Part B premiums would increase to $185.00 in 2025 from $174.80 this year, a 5.6% increase. The finalized rates will be announced early October.

FEHB Blue Cross Blue Shield (BCBS) to GEHA Plan Cost Comparisons

Premiums for the Self-Plus-One BCBS basic (113) plan and Government Employee’s Health Association (GEHA) Standard (316) plan follow: BCBS’s monthly premium increased $76.94 to $593.97, a 12.95% increase, while GEHA’s premium increased $47.39 to $374.18, a 12.7% increase. The annual increases are $923.28 for BCBS Basic and $568.68 for GEHA Standard!

BCBS Standard Self-Plus-Family option (105) monthly premiums increased $116.93 to $920.07. GEHA’s High Self-Plus-Family option (312) monthly premium increased 151.80 $ to $815.36. The annual increases are $1,403.16 for BCBS Standard and $1,821.60 for GEHA High option! Both High option plans include a partial Part B reimbursement for those enrolled in Medicare.

Check all plan’s 2025 premiums to confirm what you will be paying next year.

Medicare Advantage Plans (Heads Up for the Upcoming Open Season)

Postal Service Health Benefits (PSHB) Plan Cost Comparisons

The monthly 2025 premiums for the Self-Plus-One BCBS basic (33C) plan will be $608.81 next year. Government Employee’s Health Association (GEHA) Standard (37F) plan will cost $346.41. Year-to-year comparisons aren’t available since 2025 is the first year of operation for the PSHB program.

The Standard BCBS Self-Plus-Family option (33E) monthly premium will be $943.43. GEHA’s High Self-Plus-Family option (37C) monthly premium will be $791.31.

Check all plan’s 2025 premiums to confirm what you will be paying next year.

OPM published a resource page for Postal employees, annuitants, and family members to help them transition to their new PSHB health coverage. These resources provide extensive program information and will be updated with additional guidance as Open Season approaches.

Increased Cost Factors

Carriers are providing more options for gender affirming care and services, maternal health, fertility, obesity management, mental health and substance use disorder treatment, and telehealth benefits. They also expect a continued focus on managing pharmacy costs.

These costs are added to the increased general operational costs that all companies are experiencing such as rising salaries, supplies, and contracted services. Another significant cost factor comes into play when OPM waives the neutrality cost clause to cover options listed in the previous paragraph.

Cost Neutrality

According to OPM’s cost neutrality clause, “When proposing an increase in benefits, Carriers must propose corresponding benefit reductions to offset any potential increase in premium, with limited exceptions directed by OPM.”

They provide an example in the clause, “If a Carrier were to propose decreasing a cost sharing in one benefit and this increase in benefits would have an additional cost impact, the Carrier would have to propose benefit decreases in other areas with an equal or greater reduction in cost than the benefit increase in the same plan option”

Carriers can reduce and offset higher costs elsewhere by increasing the catastrophic cap, change prescription drug formulary options, add or increase copays, deductibles or coinsurance; decrease the number of covered visits for therapy, chiropractors, and others. There are ways to creatively reduce costs without sacrificing the excellent health care benefits we receive under the FEHB program.

OPM may issue waivers to the cost neutrality requirement where needed for proposals of coverage enhancements outlined in their current and previous year’s program carrier letters.

Summary

With premiums rising at a feverish pace, this open season is a good time to explore lower cost FEHB plans to offset high costs elsewhere. This is especially true for those with Medicare as their primary provider because FEHB plans will cover your copayments, coinsurance, and deductibles as the secondary provider.

Explore each plan carefully to ensure they cover what you need at a cost you can afford. Use OPM’s Online Comparison Tool and Checkbook’s Guide to Healthcare Plans offers a comprehensive online comparison tool and/or a paperback book version.

Pre-Order Checkbook’s 2025 Guide to Healthcare Plans for Federal Employees and save 20% by entering promo code FEDRETIRE at checkout. When you pre-order you will immediately have access to their current 2024 Checkbook Healthcare Guide, the new 2025 Guide and OPM’s comparison tool will be available the first day of open season.

For retirees, Checkbook’s Guide provides a yearly cost estimate for every FEHB plan with Medicare Part A only and a separate estimate with Medicare parts A and B. This allows users to see which plans coordinate best with Medicare, the cost reduction of adding Medicare Part B, and whether the FEHB plan offers Medicare Part B premium rebates. They also review FEHB Medicare Advantage plan options which can be less expensive for many retirees.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: 2025 FEHB Premiums, FEHB Premiums, Medicare 2025 Premiums, PSHB Premiums
Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION, WELLNESS / HEALTH

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2025 FEHB & Medicare Plans – Changes on the Way

Posted on Friday, 6th September 2024 by Dennis Damp

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The 2025 Federal Employee’s Health Benefit (FEHB) Open Season will run from November 11 through December 9, 2024. Open Season starts every year on the Monday of the second full work week in November and ends on the Monday of the second full work week in December.

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A FEHB Program Carrier Letter was sent to all FEHB providers earlier this year that outlines the policy goals and initiatives for the 2025 FEHB Program. A follow-up letter provided technical guidance and instructions.

OPM expects Carriers to provide quality care options with a continued focus on managing pharmacy costs.

PSHB Launch

Effective January 1, 2025, OPM is launching the new Postal Service Health Benefit’s (PSHB) Program. It will provide health benefits coverage for Postal Service employees, annuitants, and their family members and cover roughly 20 percent of the total current FEHB population.

Under this plan, postal employees that retire on or after January 1, 2025, and you are under 64, WILL BE required to enroll in Medicare Part B when they become entitled to Medicare Part A (typically at age 65) to remain enrolled in a PSHB plan.

Download our FREE Excel 2025 Federal Employee’s Leave Record – Tracks Annual, Sick, Comp, and Credit Hours

FEP Medicare Prescription Drug Program (MPDP)

There are 17 FEHB plans currently offering a Medicare Prescription Drug Program (MPDP) for Federal Employee Program (FEP) members with Medicare. OPM continues to encourage FEHB plans to offer more Part D prescription drug coverage options.

The FEP Medicare Prescription Drug Program (MPDP) is a prescription drug program with a Medicare contract. When you move to the MPDP you will retain the same Federal Employee Plan (FEP) health benefits you always had. There are additional drugs available, often times at lower costs, with a cap on the maximum out-of-pocket expenses that your current plan does not have.

Those with household incomes over a certain limit will pay an Income Required Monthly Adjusted Amount (IRMAA) Part D premium of $12.90 to $81 a month in 2024 for their Part D coverage. If you file jointly, both will have this amount automatically deducted from their Social Security check each month. Review the 2025 Medicare Part B and D premiums when they are released later this year to determine what your additional payment would be.

Blue Cross and Blue Shield automatically enrolls participants eligible for Medicare in their FEP MPDP program. You have to send in a request to cancel it and retain your current FEHB prescription drug plan if you are satisfied with your coverage and subject to an IRMAA.

Premium Impact

The average increase for our FEHB plans in 2024 was 7.3% while Medicare premiums increased 6% after the previous year’s 3% degrease. The Medicare trustees project that the monthly premium for Medicare Part B will increase to $185 in 2025, up from $174.70 in 2024 and $164.90 in 2023. The 2025 Part B premium will be finalized in the fall.

Medicare’s Income Required Monthly Adjusted Amount (IRMAA) charge will be determined in the 4th quarter of 2024. The 2025 IRMAA determination is based on your 2023 Modified Adjusted Gross Income.

The high cost of health care coverage overall will potentially increase premiums across the board.

Evaluating Your Current FEHB Plan

It’s a good time to review your current plan’s coverage and ask yourself if they met your needs and expectations this year. Ask these questions:

Did I have coverage issues?
What additional coverage will I need next year?
Was I able to get the medications / prescriptions needed at a reasonable cost?
Did I have to pay high prescription copayments?
Where my deductibles, copayments and coinsurance excessive this year?
Are the labs, doctor’s offices, hospitals, and outpatient facilities available in my immediate area and covered by my current FEHB plan?
Did I have to travel out of my area to see a provider or have procedures performed?
Was customer service helpful and easily accessible?
Did I encounter unanticipated expenses that I thought were covered in my current plan.
Are you signing up for Medicare this or next year? if so, you may want to consider moving to a lower cost FEHB plan.
Explore Medicare signup options

Answering these and other questions will help you prepare for the upcoming open season. If you had problems this year, look for plans that will better suit your needs in 2024

Comparing 2024 and the Upcoming 2025 Plans

Explore each plan carefully to ensure they cover what you need at a cost you can afford. Use OPM’s Online Comparison Tool and Checkbook’s Guide to Healthcare Plans offers a comprehensive online comparison tool and/or a paperback book version.

Pre-Order Checkbook’s 2025 Guide to Healthcare Plans for Federal Employees and save 20% by entering promo code FEDRETIRE at checkout. When you pre-order you will immediately have access to their current 2024 Checkbook Healthcare Guide, the new 2025 Guide and OPM’s comparison tool will be available the first day of open season.

For retirees, Checkbook’s Guide provides a yearly cost estimate for every FEHB plan with Medicare Part A only and a separate estimate with Medicare parts A and B. This allows users to see which plans coordinate best with Medicare, the cost reduction of adding Medicare Part B, and whether the FEHB plan offers Medicare Part B premium rebates. They also review FEHB Medicare Advantage plan options which can be less expensive for many retirees.

Conclusion

The vast majority of federal employees remain with the same FEHB plan year after year. There are many plans available during open season to choose from that could save costs and/or improve coverage. This is a good time to evaluate your current plan and determine what is best for you and yours next year.

Many factors contribute to higher health care costs including an aging population that uses more health care services overall. According to Health.gov, People age 65 years and older made-up 17 percent of the population in 2020. By 2040, that number is expected to grow to 22 percent.

The FEHB providers won’t publish the new 2024 premium rates until late September or early October. It seems inevitable that increases are coming our way.

Hopefully, premiums won’t increase as much as I and others anticipate, only time will tell.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Enhancing Your Retirement Experience – One Day at a Time

Posted on Friday, 23rd August 2024 by Dennis Damp

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At Federal Retirement Planning, we understand the importance of preparing for retirement holistically: financially, emotionally, and physically. One without the other could derail your retirement.

One crucial aspect often overlooked is the incorporation of an exercise routine long before retiring in preparation for an active life after retirement. Many, defer this to post retirement.

After retiring, I treated everyday like the weekends when working, running here and there, taking on multiple projects, and started an aggressive mall walking routine. Much to my dismay, I discovered the reality of the situation. Too much too soon and had to slow down the pace considerably to recover after several months of non-stop activity.

Exercise, Essential for All

Establishing a consistent exercise regimen can significantly benefit your physical and mental well-being in retirement. From boosting energy levels and enhancing your mood and cognitive function, to improved sleep, regular exercise can pave the way for a fulfilling retirement lifestyle.

By taking proactive steps towards your health now, you are investing in a vibrant and active future post-retirement. Let Federal Retirement Planning help you thrive in retirement by providing comprehensive resources for all aspects of your retirement journey.

Download our FREE Excel 2025 Federal Employee’s Leave Record – Tracks Annual, Sick, Comp, and Credit Hours

Personal Commitment

It takes commitment to achieve your goals, whatever they may be: a realistic exercise routine, financial independence, eating right and diet, or one of a thousand other challenges we encounter throughout life.

It’s easy today to get distracted and put off planned activities. The longer you wait to restart your program, the harder it is to get back up and running. How many times have we made New Year’s resolutions that were soon abandoned.

It’s best to incorporate healthful activities and exercise programs long before retiring. Walk around the office for 5 minutes every hour or at lunch time to relax and start a daily routine. Extend this to your home life.

When I mention walking to family and friends, many say they can’t get out and about to walk, or the sidewalks in their area are trip hazards. Most ignore the fact that they can walk in the home as Mary, and I do.

We have a trip free all hard wood path on the first floor of our home that we’ve walked for over a decade. I walk for 30 minutes twice a day, starting at 7 am each morning, seven days a week. Mary does two 1-hour sessions! That’s not counting all of the additional walking we do during the day for work and other activities.

Areas To Focus On?

One area I should have paid more attention to is my core. During my early years, I serviced our cars, remodel homes, landscaped, and general construction work including finishing game rooms, installing bathrooms, electrical wiring, plumbing, patios, porches, building retaining walls, installing fences, and decks. All of this heavy physical activity at home and work early in life created health challenges down the road.

Unfortunately, I ended up with knee surgeries and three lower abdominal hernias that now restrict what I can do physically. Had I exercised my core I could have possibly avoided some of this, who knows, life has it way of catching up with us all. I advised my 52-year-old son not to abandon his exercise routine and to focus on his core, so he doesn’t end up with issues like I have today.

Last But Not Least

Our Federal Employee’s Retirement Checklist focuses on the key issues that must be addressed to retire and exit on a positive note. It starts off with a link to our FREE PDF report titled “How to be Emotionally and Physically Prepared When You Retire.” It discusses how to be up for the challenge and outlines what I did to prepare for retirement at age 55, 20 years ago!

Follow the checklist to ensure you don’t miss out on the benefits you worked a lifetime to secure and maximize your annuity through prudent sick and annual leave management.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Emotionally Prepared for Retirement, Federal Employee's Retirement Planning Guide, Financially Prepared for Retirement, Physically Prepared for Retirement, Retirement Planning
Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE

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2025 Federal Employee’s Leave Record Now Available

Posted on Thursday, 8th August 2024 by Dennis Damp

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Share this Excell Leave Record Chart with everyone in your organization.

Each year we publish a comprehensive leave record that federal employees can use to track their annual and sick leave, comp, and credit hours used. Our updated 2025 Excel Leave Chart is designed for active federal employees that are planning their retirement and need to establish realistic target retirement dates. This spreadsheet also helps federal employees maximize their annuity through prudent management of their leave balances.

This chart tracks all leave balances, and you are able to annotate your work schedule on the chart as well. Simply download the spreadsheet to your desktop for easy access.

2025 Leave Excel Leave Record

Retire With More

Most approaching retirement plan to increase their annuity and lump sum payments by maximizing their annual leave buy-back and sick leave balances. Convert your unused sick leave to increase your annuity for the rest of your life! Well worth the effort. I sold back a full year of sick leave, 2087 hours, that added an additional year of service for my annuity calculation.

A federal employee who separates from the Federal service is entitled to payment, in a lump sum, for all unused annual leave accrued through the last full pay period before separation.

Federal employers are allowed to carry over up to 240 hours of annual leave each year. Many, the last year of work, apply their carryover balance to most if not all of the annual leave they accrue before retiring.

I sold back the full 240 hours of carry over leave plus 208 hours I accrued my last year of employment. This amounted to almost three months of pay less taxes owed that I received in a lump sum payment 6 weeks after retiring. Review my retirement timeline to get an idea of what to expect the first three months after retiring.

Federal employees who are retiring soon and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

The 2025 Leave Record Chart

Download the 2025 Leave Record Chart

If your spreadsheet opens in protected view click the “enable editing” button in the yellow bar at the top of the form. However, if you don’t see the enable editing button you may have an older version of Excel, or your IT department may have to allow the form to pass without restrictions. We also included a newer slsx workbook version that you can use if you have problems with the earlier version.

According to a Microsoft Office consulting firm, if the spreadsheet only opens in protected view status and the newer slsx version doesn’t correct the problem talk with your IT staff. Some agencies increase their security settings to lock out certain documents based on set parameters. We include several hyperlinks in our spreadsheet to link users to additional supporting information such as our sick leave conversion chart and that may be the cause.

2025 Holidays

*This holiday is designated as “Inauguration Day.” Federal employees in the Washington, DC, area are entitled to a holiday on the day a President is inaugurated on January 20th for each fourth year after 1965.

**This holiday is designated as “Washington’s Birthday.”

Summary

The earlier you start preparing for retirement the better. Set several retirement target dates, request annuity estimates from your HR department for selected dates, and review you annual and sick leave balances to maximize your annuity and leave buy-back amount.

Use our FREE online Retirement Planning Guide to help you through the process. One of our site visitors said, “I spent 3 hours on the web looking for answers to questions concerning federal retirement. After a Google search yielded your address, it took only 20 minutes to find all of my answers! Thank you!!!”

Take advantage of this free service to explore your benefits, estimate pre and post-retirement income, expenses and costs, and determine whether or not you are financially, physically, and emotionally prepared for retirement.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: 2025 Excel Leave Record, Annual Leave Tracking, Federal Employee's 2025 Leave Chart, Federal Work Sshedule Tracker
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS

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Too Much too Soon & Cable TV Subscription Costs

Posted on Friday, 26th July 2024 by Dennis Damp

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I visited a recently listed custom-built ranch home in our neighborhood and couldn’t find the controls to operate the kitchen appliances including the electric stove top. Everything was monitored and remotely controlled; as we moved one room to another, music emanated from recessed ceiling speakers.

This home has an EV charging station in the three-car garage, is professionally landscaped, has automated Hunter Douglass custom hardwired blinds, custom high-end whole house pre-wired remote camera access, Savant Security Systems, and is beautifully furnished and decorated! Yet, Mary and I couldn’t imagine living in such a home even though it was gorgeous inside and mostly one floor living.

Automation Gone Wild

The price was outrageous, $450 a square foot! I can’t see the current owner getting anywhere near their asking price but who knows in today’s market. Plus, it didn’t have a basement and the average home value in this area is typically less than half their asking price.

They placed a six-foot tall standard electronic equipment rack loaded with control and computer modules in the attic above the garage. Several dozen control, audio / video, and sensor cables are routed from the rack to every room in the home. They didn’t heat or cool the area! The ambient operating temperature for this equipment could easily be exceeded in either direction causing the equipment to fail. Then who do you call? Ghost busters I suppose.

A buyer would require a comprehensive operations manual and training on how to operate, maintain, and control everything! Not something I want to do even though I have an extensive electronics and computer background, no thanks. It would drive me and my wife crazy. In the sales perspective, they list the audio / visual initial installation cost at $161,000!

Cable Subscription Costs

Our cable bill is considerably higher than most of our monthly bills and I’ve tried to negotiate a lower price or change from Xfinity to Verizon without success on numerous occasions over the past year. Every time I talked with Xfinity, they would say I can go to a lower-level plan with less channels, but the price is close to what my current legacy plan costs, $306 monthly including Netflix!

Phone numbers can easily move from one provider to the next. However, if you use your cable company’s email address, many hesitate to change carriers. Email addresses are frequently used for online account user IDs and listed as contact information for every service we use from health care, banking, utilities, and so much more. Fortunately, I use my AOL and Gmail account email addresses but that is only half of the battle.

Last Wednesday I called again to reduce my internet speed of 1 Mpbs and 200+ channel count by half. The savings amounted to around $20 after they removed Netflix from the package! No savings at all considering I’ll be left with half what I had originally and now I would have to pay $14 separately for my Netflix streaming account. They informed me that any change to my legacy account requires a move to one of their updated new and apparently more expensive options.

Verizon is roughly the same costs with additional problems, they have to route their fiber optics cable under our driveway and through our lawn sprinkler lines to set up the service.

Cable Channel Confusion

We only use a handful of the 200+ channels we currently have, and seldom watch NBC, CBS and ABC, except for local news. The commercials are too distracting.

Most of the time we use Amazon Prime, Netflix, HULU, and Masterpiece streaming services, and watch: cable news channels, Discovery, HGTV, History, Lifetime, TLC, Bravo, Hallmark, Science Channel, and National Geographic.

Xfinity bundles their news offerings with sports channels which we don’t want or need and that increases the package fee dramatically. The way they bundle plans allows these companies to extract more from us all. It’s like going to the market and they only offer mayonnaise packaged with ketchup, mustard, and relish, and you only want mayonnaise. Great for the companies, but a rip off for their customers.

Alternate Route

There are ways to cut the cord using either paid and/or free TV streaming services. To get around the prospect of losing your email address, retain your current Internet provider and cancel TV services. Internet service averages about $80 per month, plus WIFI modem costs another $15.

After another frustrating round with Xfinity this week they quoted me a monthly price of $136.87 including all fees and taxes for 500 Mbps Internet, their modem with WIFY and one land line home phone. No TV service. They made no attempt to entice me to keep my TV services with them, none at all.

Indoor Antennas & Paid TV Streaming Services

An indoor digital antenna hooked up to your TV’s coaxial antenna connector tunes in local TV channels in most major metropolitan areas or you can subscribe to streaming services such as Sling TV, Hulu + Live TV, YouTube TV , and others for a fee.

YouTube TV offers 100+ live channels, Unlimited DVR space, Special features like Key Plays View, and 6 household accounts and 3 streams for $72.99 per month. This service carries most of what we want, and we would keep Amazon Prime and Netflix. Our total cost would be $209.86, not counting our other streaming services and just under a hundred dollars a month less than what we are now paying.

I have one of our TVs set up with a digital antenna; we receive about two dozen stations including ABC, CBS, NBC and Fox, many in high quality digital format. Because we are located in Southwestern PA, we also pick up a number of the West Virginia and Ohio stations.

The paid TV streaming service you select depends on what you watch, match up the channels you desire to the streaming plans offered. These paid plans can run anywhere from $25 to $100 a month or more. As you can see, the costs can increase substantially based on what you pick.

Free Streaming Services

There are free streaming services: Freevee, the Ruku Channel, Hoopla, Pluto TV, and Tubi to name a few. These no-cost options include ads. Ruko Channel includes thousands of free TV shows and hit movies, Roku® Originals, 400+ live TV channels, kids’ entertainment, Premium Subscriptions, and more.

None of the free services I checked out include local TV, you would have to use an antenna for that. Change the input on your remote to Antenna to tune in local stations if available in your area. Digital TV antennas are inexpensive; even if you don’t need one now, they’re good to have in a pinch when your cable or internet is offline.

Many TVs now come with their own unique free streaming services, including Samsung’s TV Plus. It takes time to adapt to each streaming service and changing channels isn’t as easy as it is with a cable box remote. An advantage the cable companies have, I and many others are questioning whether cable’s advantages outweigh their outrageous costs today.

Summary

Automation and higher costs go hand-in-hand today, from new homes, cars especially EVs, robotics, and so much more. I use extender wall outlets to accommodate all that needs charging: hearing aids, iPhone, iPad, Apple watches, tools, shavers, etc. Some of my wall outlets look like a spider’s web with wires everywhere.

The cost of everything is rising faster than most realize, and retirees are often first to feel the pinch. I’ve been looking at ways to economize anyway possible including changing electricity suppliers this year, saving us over 20 percent a month for the next 12 months.

Cable companies literally have a monopoly today similar to the railroad and oil barons of bygone days. They have a product that every single home in America needs except in the Amish communities! The charges keep rising at an alarming rate and I can’t believe I’m saying this, but government needs to regulate these behemoths.

Customers should be able to pick and choose the channels and packages they need instead of being forced to take a cornucopia of channels most don’t watch but are paying for.

TV Streaming services are a viable option for many, but they do require a reliable and fast internet connection. Otherwise, you may experience low resolution issues, lag, buffering, and/or interruptions due to high demand or technical problems. Something to think about, do a test drive to check out how they perform at your location before changing anything. There is also a learning curve and it takes time to set up the service and use the app.

I’m signing up for a free 7-day trial YouTube TV subscription this week before deciding on what path to take. It’s easy to sign up on your current system and give it a spin. The trial runs for 7 days and if you sign up afterwards, they charge you $64.99 for their TV Base plan for the first four months, an $8 monthly savings. After that the monthly charge increases to $72.99. You can cancel at any time.

It includes 100+ live channels, Unlimited DVR space, Special features like Key Plays View, and 6 household accounts and 3 streams. There is a good mix of local TV channels, news, entertainment, sports and much more. Plus, they have many add-on networks to suit most of what you will be looking for.

Another benefit of streaming TV is that you don’t pay the high broadcast and regional sports fees that cable charges, in my case those two items alone cost $38.90 a month. Plus, no equipment charges, another big savings for many.

I’ll let everyone know how my test drive goes and if I make the jump to streaming TV, it’s a learning curve but it’s long past due on my part.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: AI, Automation, Cable Costs, Housing costs, Hunter Douglass custom blinds, Live Streaming options, Savant Security Systems
Posted in ESTATE PLANNING, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS

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The Art of Downsizing – Why, Where, & When?

Posted on Friday, 12th July 2024 by Dennis Damp

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Either you’ve been retired for some time and realize life’s challenges have taken center stage or you are an astute employee planning your retirement well in advance, a smart move. What seemed insignificant health issues in our 40s, 50s and 60s now tests our physical and at times mental abilities as time marches on.

Most come to realize their limitations as age catches up with us and reality takes center stage.

Benefits of Downsizing

According to the National Association of Realtors, sellers aged 69 to 77 were the most likely to downsize their homes for the following reasons:

A smaller footprint to maintain and service
Fewer steps and trip hazards to contend with
Lower utility costs, real estate taxes, and insurance premiums
Improved cash flow and less financial stress
To be closer to family and friends

Many are overwhelmed by the process and procrastinate until it’s too late, others are proactive and explore their options well in advance of when they actually make their move.

The benefits can be out weighted by the added stress of getting this all done. However, it is essential in many cases just for health concerns, both emotional and physical. Another concern is that a surviving spouse won’t be able to handle the demands of a large home after the inevitable happens, that is one of my primary concerns.

To Move or Not to Move – That is the Question

Moving is a major life event and one not takin lightly. The stress and anxiety surrounding selling your existing home and a move leaves many distracted and sleep deprived, especially if you don’t identify and plan the many actions necessary to transport not only your belongings, but set up all the services needed at your new location. Then, you must decorate, hang blinds and/or curtains, paint, make needed improvements, change your address on all of your accounts, and so much more.

Thankfully, there are ways to ease into downsizing and reduce the stress with preplanning and forethought.

Decluttering – The First Step

Long before you start looking, it’s wise to go through your home, one room at a time and identify three categories for what you find: things to keep, giveaway, sell or donate. You will be amazed at what you and yours accumulated over the years and wonder where it all came from!

It’s too easy to hold on to what you have thinking I may need this down the road. If you gained or lost weight you have several sizes of cloths at the ready just in case you change direction AGAIN and go up or down on the scale.

When Mary and I sorted through our closets, I had work clothes I hadn’t worn in decades, outdated and out-of-style suits, shirts and pants that I finally sent to Goodwill for others to use. Mary found clothes with sales tags attached that were purchased years ago; they too were donated. The suits I kept required minor alterations, a friend referred me to a local seamstress.

I felt a sense of relief and accomplishment as I went through our house, garage and garden shed eliminating the unnecessary, irrelevant, and outdated distractions in our lives. I had tools that I’ll never use again that I either offered them to my son and friends or donated the items to a local church for their annual sale.

If you have furniture that you don’t need contact one of a dozen charities including Habitat for Humanity, the Salvation Army, Goodwill, and others that may take it off your hands. Local municipal waste management companies often have large item days where you can put the items at the curb on certain days of the month.

You can also call 1-800 Got Junk (1-800-468-5865); they will haul away just about anything for a fee that you can’t dispose of otherwise. We used them to pick up an old treadmill, office furniture, and a 1920s pedal powered singer sewing machine. They do all of the heavy lifting.

Even if you don’t move, this is a necessary step in retirement. This first step helps heirs settle an estate and it’s best if the clutter is gone and you’ve already distributed or identified family members to receive heirlooms and special sentimental items. Plus, an uncluttered household provides a sense of relief to those still living.

What’s Available

Finding a suitable home in your desired location such as a master bedroom on the first floor or a ranch for one level living can be a challenge. Most homes are multilevel in the Pittsburgh, PA area due to hilly terrain, there aren’t many wide flat lots available to build ranches. Myrtle Beach in South Carolina is a different story, the majority of their new homes are one story which is great for retirees for obvious reasons.

You can visit www.realtor.com, www.zillow.com, or www.redfin.com to search their home listings using filters for the desired features, price range, and locations. Visit frequently so you don’t miss out on a new listing.

Your best bet is to work with a realtor who can set up searches with alerts for the type and price range of homes in your area. They are intimately familiar with the areas they service and may know of new or soon to be listed properties before others discover they are available. It’s a highly competitive market and homes in many areas with first floor master suites go fast and aren’t generally on the market for extended periods unless they are overpriced or in subpar condition.

One word of caution, if you find a new or existing home by searching listings online, select a local realtor to represent you. Don’t rely on the listing agent who represents the seller!

You need someone on your side to help you negotiate the sale, provide needed resources, and to research and answer any questions you may have about the area and transaction.

When to Start Your Search

After you settle on a location, price range, desired home style and features, the earlier you start your search the better. It can take a few months to years to find the ideal property that meets all of your expectations. This will give you time to declutter and organize for the pending move.

Compromise is a constant in the real estate market unless you build to your specifications. It’s difficult finding a home with all of the desired bells and whistles. Be prepared for upgrades and remodeling projects; it’s best to remodel before you move in. Once you occupy the premise, it’s difficult working around contractor’s schedules that can interrupt your days for months-on-end.

Summary

When you start out looking for one-floor-living or at least a first-floor master, stick to your guns. It’s easy to get side tracked and give up on your quest, especially when an attractive property and offer comes along.

If you decide to purchase a home without the primary features you desire, you will more than likely regret your decision years later. I’m proof of that, we did this in 2012, the property we purchased had everything we wanted except a first-floor master that we definitely need today.

My local realtor, Craig Lalama, is with Re/Max and covers South Western, PA. He sends notices of all new listings with a first-floor master that meets our criteria, a good realtor can keep you focused and on track.

My wife and I are self-proclaimed experts in moving and decluttering, we moved 11 times in our 55 years of marriage including several cross-country relocations.

What type of property or services you need can dramatically change over time. It helps to be realistic and anticipate some of the frailties that may limit the type of home and location you are willing to accept. Some seek out independent senior living or 55+ communities. A viable option with many benefits including social networks, activities, no outside maintenance, assisted care if needed, and much more.

If you take the plunge and decide to downsize, identify acceptable locations, determine the square footage, number of bedrooms and baths, and type of home you desire. Inventory your home furnishings and other contents to ensure they will fit in your new space.

Carol, a friend from work, recently moved to a one-bedroom apartment in a local retirement community. She had boxes piled up in her bedroom for months. She didn’t realize how small her new apartment was in comparison to the condo she previously owned.

Kiplinger’s article titled, How Retirees Can Downsize in Today’s Housing Market, can help you navigate the higher mortgage interest rate environment we are facing today.

If you decide to downsize, start slow and discuss your wishes and concerns with your family and friends. Declutter, identify where you want to relocate to, type of home and features, and contact a realtor to help you along the way.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SURVIVOR INFORMATION, WELLNESS / HEALTH

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2025 COLA Estimates & Retirement Processing Update

Posted on Friday, 28th June 2024 by Dennis Damp

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Last year’s 3.2% COLA for Social Security and the Civil Service Retirement System (CSRS), and 2.4% for Federal Employees Retirement System (FERS) dropped considerably from the 2023 COLA of 8.7% CSRS and 7.7% FERS. The highest in over 40 years. Costs continue to increase for most essentials.

The costs of all items have increased around 3.3 percent for the 12-month period ending in May of this year according to the Bureau of Labor Statistics. The chart shows a 2 percent increase for food, but I find that hard to believe since my wife and I shop together, and the cost of many items keep creeping up.

This year our real estate taxes continued their upward climb along with our homeowner’s insurance that was almost half as much two years ago. Gasoline in Pittsburgh is averaging $3.71 a gallon, and this is the catalyst that is driving up costs of everything.

2025 COLA Estimated Increase

The 2025 COLA is calculated over the 12-month period from October 1, 2023, through September 30, 2024. The next three month’s CPI data will determine the amount of the next COLA and depends on the reported monthly inflation rates for these months, the last three months of this fiscal year.

If the US Inflation trend continues to decrease by -0.1% per month through 30 September 2024, Inflation will be at 2.9%, and at 2.6% by the end of 2024 according to Wilbert J Morell III, a retired Navy Engineering Project manager, that tracks these statistics.

Willbert predicts a 3.3% Inflation rate and the 2025 Social Security COLA to be from 2.3% to 2.9%: more likely 2.9%. He provided two other scenarios based on the path of inflation:

If the CPI-W remains constant through 30 September 2024, the 2025 COLA for Social Security and CSRS is predicted to be 2.2% and 2.0% for FERS.
If the CPI-W continues to decrease at the same -0.1% trend through 30 September 2024, the 2025 COLA for Social Security, CSRS, and FERS is predicted to be 2.0%.

If inflation increases due to any number of reasons, the 2025 COLA will be higher. Most media outlets are currently reporting anywhere from 2.2% to USA Today’s 3%. All projections are based on what the pundits perceive to be the rate of inflation over this period.

Retirement Processing Delays

OPM, as of May 2024, has an inventory of just over 14,000 claims to process. They received 6,751 claims in May and processed 8,793.

The good news is that OPM’s retirement claims processing times have steadily declined since 2022 from over 90 days to 60 days today.

Common Mistakes That Cause Delays

Any mistakes or omissions in your retirement application often cause delays. Common errors include:

Unsigned forms
Check that all forms are complete before submitting them.
Provide the correct contact information, not your work email and phone numbers.
Fill out a new one if you make a mistake, application forms with corrections such as cross-outs or white-out can cause delays.
Incomplete or incorrect SF 2818 FEGLI (Continuation of Life Insurance)
Missing health benefit information
Missing or incorrect marriage and spousal consent information
Missing or incorrect military service documentation

NOTE: Keep a copy of all forms submitted, you never know when one will come up missing or gets lost in the process. Plus, you’ll have a copy for your retirement folder that you can use to confirm assigned beneficiaries, and other insurance and benefit selections. Keep these copies with “Your Retirement Benefits (Blue Book)” that OPM sends you when your claim’s process is completed.

Preparing for Retirement, Start NOW!

The following list of articles will help anyone planning their exit to take the appropriate actions necessary to submit a timely retirement application:

Summary

A COLA around 3% is much better than the ZERO COLAs we received in 2010, 2011, and 2016. Yet, the cost-of-living adjustment is based on the previous year’s statistics; in effect we start out at a loss each year.

That being said, my annuity has almost doubled since I retired 20 years ago. Many in the private sector find themselves hard pressed to make ends meet 10 or 20 years after they retire.

When it comes to retirement planning, it’s best to start your plan long before you walk out the door. I attended several agency-sponsored retirement planning seminars before retiring that prompted more questions than answers. That’s why I developed and launched the Federal Employees Retirement Planning Guide website in 2004.

A site visitor remarked, “I spent 3 hours on the web looking for answers to questions concerning federal retirement. After a Google search yielded your address, it took only 20 minutes to find all of my answers! Thank you!!”

If you are contemplating retirement, start researching your benefit options early. There are many decisions to make, and most are irreversible after you leave. One example is life insurance, several low-cost options are well worth carrying into retirement even if NOW you think the coverage isn’t needed.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: 2025 COLA, COLA Projections, CSRS Retiremenyt, FERS Retirement, Retirement Processing Delays
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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